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Bank Accounts - Checks: Cashing


I need to cash an $8,000 check. The bank said it needs sufficient notice to provide that much cash. What can I do?

Generally, national banks don't keep large amounts of cash on hand. Most banks disclose the amount of notice needed to cash large checks in the Account Agreement disclosures you received upon opening your account.

Instead of cashing the check, you may want to obtain a cashier's check or wire the funds.

I wrote a check and post-dated it. However, the bank cashed it prior to the date written on the check. Can the bank do this?

Yes. National banks are permitted to pay checks even though payment occurs prior to the date of the check. A check is a negotiable instrument—the payee, the person to whom the check is written, may negotiate it through the banking system at any time.

If you have incurred damages because a check has been negotiated before its date, you should directly pursue the payee for restitution.

I received my payroll check and went to the bank the check was drawn on to cash it. The bank refused to cash the check since I do not have an account with them. Is this legal?

There is no federal law or regulation that requires national banks to cash checks for noncustomers. Most banks have policies that allow check cashing services only for customers who have an account with them in order to protect both themselves and their customers from forgeries.

Once a national bank cashes a check that has been forged by a noncustomer, they may lose money if they cannot collect from the person who cashed the check.

Also, if a national bank agrees to cash a check for a noncustomer, it may legally charge the presenter a fee.

I went to a bank to cash a check that was drawn on the bank. I do not have an account with the bank and they refused to cash the check. Can it do this?

Yes. There is no federal law or regulation that requires national banks to cash checks for noncustomers. Most banks have policies that allow check cashing services only for customers who have an account with them in order to protect both themselves and their customers from forgeries.

Once a national bank cashes a check that has been forged by a noncustomer, they may lose money if they cannot collect from the person who cashed the check.

Also, if a national bank agrees to cash a check for a noncustomer, it may legally charge the presenter a fee.

Why doesn't a national bank have to cash a check that is drawn on them?

There is no federal law or regulation that requires national banks to cash checks for noncustomers. Most banks have policies that allow check cashing services only for customers who have an account with them in order to protect both themselves and their customers from forgeries.

Once a national bank cashes a check that has been forged by a noncustomer, they may lose money if they cannot collect from the person who cashed the check.

Also, if a national bank agrees to cash a check for a noncustomer, it may legally charge the presenter a fee.







Copyright 2007 by Mark McCracken , All Rights Reserved