What happens if you alter the payee name on a check?
If the individual who alters the check payee does so with the intent to defraud, he/she can be charged criminally. Whether the offense would be a misdemeanor or a felony would depend on the amount of the check and the provisions of state law.
In addition, the Uniform Commercial Code has provisions designed to protect the issuer of a check that is altered. A check that is altered in such a way as to change persons' obligations is not properly payable, except as originally drawn.
The issuer of an altered check that is paid by the drawee bank has an obligation to detect and report the alteration promptly to the bank. "Promptly" with regard to such notification may be defined within the bank's deposit contract. If notification is not made promptly, the bank may refuse the claim. No claim may be made more than one year following the delivery of the bank statement showing the payment of the check in question.
If the drawee bank is obliged to repay its depositor for an altered check, the bank can make a claim on the bank that accepted the check for deposit. In that way, the loss is shifted to the party that dealt with the person making the alteration.
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If the individual who alters the check payee does so with the intent to defraud, he/she can be charged criminally. Whether the offense would be a misdemeanor or a felony would depend on the amount of the check and the provisions of state law.