CONTENT

  DEPARTMENTS



  DETAILS
Legend for Icons
 Article    Q&A

 Podcast  Video

 Blog  Discussions

PDF    Powerpoint
BankingQuestions.com Web

  Home >> Checks/Money Orders >> Checks You Received  
Is Bank Liable for Cashing Unendorsed Check?

My insurance company made a check out to the body shop and me. The body shop stamped "deposit" on it along with their account information. I didn't endorse it. Is the bank liable for cashing it?


If you have an interest in the proceeds of that check -- that is, if the check exceeded the amount due the auto body shop and you should have received the excess -- you can enter a claim with the insurance company for non-payment, and the bank that took the check for deposit would be liable for reimbursing the insurance company. However, in most cases a collision coverage insurance check is for less than the full auto body bill, or equal to it. If that's the case, although the bank should have required both endorsements, yours and that of the auto body shop, you don't have a financial interest, and no party is going to be liable for the missing endorsement.

Published on BankingQuestions.com 7/09/08