Third Party Cheque Cashing

26 Apr 2007
My father recently did a bit of work for a company and was paid £1000 by cheque. He needed the money badly, so used one of those cheque-cashing services. He was given £975 and had to sign a form and give them ID blah blah.

Got a phonecall today saying that the cheque had bounced! Ooooops! And when is he going to pay them their £1000 back!?

He is trying to get the money ASAP but the question is: Who has the liability for the cheque? Will the cheque cashing people chase the company who did not have the funds (the people who paid my dad) - or is my dad liable because he gave them the cheque? The company confirmed with the cheque casher that he was entitled to the money, so surely they should be chased for the money?

BTW, no credit agreement was signed - just a form giving them power of attorney to cash the cheque.

Any ideas?
22 Oct 2002
Hull, UK
The cheque cashing company will try to get heavy, but they checked with the issuing company that cheque was valid and all was kosher and gave the advance on the money. It really comes down to a dispute between the cheque issuer and the casher. I think you should get a copy of their terms and conditions and read them very carefully, also give CAB a ring for advice they can often help with these problems.

Rob h
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