|
 |
Home >> Checks/Money Orders
About the Rights of Check Cashing Places
Does a grocery/liquor store have the same legal right of “holder in due course” as does a check cashing store, if it cashes what appear to be payroll checks that later turn out to be fraudulent, unauthorized, or counterfeit? What is a company’s legal exposure if it has a policy to refuse reimbursement to the grocery/liquor store (but not the check cashing store) for these fraudulent, unauthorized, or counterfeit checks? Does the grocery/liquor store have a claim against the company, especially if it becomes aware of the company’s policy of discrimination?
|
|
 The legal definition of "holder in due course" isn't affected by type of business. All other things being equal, a check cashing store has the same legal rights with respect to a check it cashes as a liquor store, furniture store or even an individual who cashes a check. There may be questions concerning whether the business is licensed to cash checks, but that's another matter entirely. However, with respect to checks that are fraudulent, counterfeit, or unauthorized, it doesn't really matter, because the purported issuer (the party on whose account the checks appear to have been drawn) has no liability to anyone.
Published on BankingQuestions.com 11/03/09
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
