Bank tried to stop me lodging a sole payee cheque to a joint account

[nlgbbbblth]

The issue as I see it is the endorsement.

An unendorsed cheque payable to Mr A and crossed account payee only should only be lodged to Mr A's sole account.

However if Mr A endorses the cheque then it's a different ball game. It is permissable to lodge an endorsed account payee only cheque to a third party's account in certain circumstances.

usually
1) For solicitors clients' accounts (given that a lot of cheques that they handle have pre-printed crossings that cannot be altered - i.e. from insurance companies, drafts etc)

2) If the account holder signs an Third Party Cheque Lodgment Indemnity form. This effectively allows him to lodge such cheques on the proviso that he indemnifies the Bank against any loss - and if any cheques bounce then the Bank has the right to debit his account.

3) For small value cheques (limit set by the Bank).

 

[Bronte]

This thread reminds me of what my mother used to do with cheques made out to my father, she was a dab hand at forging his signature and signed the back of the cheque for him when she was doing the lodgments.

 

[Daisy2012]

Bronte, but not really the point.

@ Padraigb - Is this the section you are talking about:
(1)A bill is duly presented for acceptance which is presented in accordance with the following rules:

(a)The presentment must be made by or on behalf of the holder to the drawee or to some person authorised to accept or refuse acceptance on his behalf at a reasonable hour on a business day and before the bill is overdue:

(b)Where a bill is addressed to two or more drawees, who are not partners, presentment must be made to them all, unless one has authority to accept for all, then presentment may be made to him only:

(c)Where the drawee is dead presentment may be made to his personal representative:

(d)Where the drawee is bankrupt, presentment may be made to him or to his trustee:

(e)Where authorised by agreement or usage, a presentment through [F4a postal operator] is sufficient.

(2)Presentment in accordance with these rules is excused, and a bill may be treated as dishonoured by non-acceptance—

(a)Where the drawee is dead or bankrupt, or is a fictitious person or a person not having capacity to contract by bill:

(b)Where, after the exercise of reasonable diligence, such presentment cannot be effected:

(c)Where, although the presentment has been irregular, acceptance has been refused on some other ground.

(3)The fact that the holder has reason to believe that the bill, on presentment, will be dishonoured does not excuse presentment.

?? Still don't see where it says that a cheque made out to one person may only be lodged into an account which is solely in that person's name.

@ nlgbbbblth - this is actually the nub of the issue. I can not see anywhere anything that says that a cheque which is crossed a/c payee only can only be lodged to an account in the sole name of the payee.

I have contacted the bank and asked them for their policy, but so far they haven't managed to send it to me.

I also asked them was there a form that we could sign that would allow us to lodge cheques made out to one of us into our joint account without endorsement. They didn't mention the third party cheque lodgement indemnity form - maybe because it isn't going into a third party account!

D

 

[Padraigb]

@ Padraigb - Is this the section you are talking about:
... The presentment must be made by or on behalf of the holder to the drawee or to some person authorised to accept or refuse acceptance on his behalf ...

?? Still don't see where it says that a cheque made out to one person may only be lodged into an account which is solely in that person's name....

I have left in the core section, and draw your attention to the phrase: "by or on behalf of the holder".

You have been ignoring the point that I have been making, which has nothing whatsoever to do with joint accounts: it is to do with who may negotiate a cheque. Without supporting evidence, the bank should work on the basis that your niece is not the holder nor is she acting on behalf of the holder.