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Home >> Checks/Money Orders >> Checks You Received
Cannot Cash a Check without an Account?
I am having a problem with banks cashing checks that are drawn on them. I always present proper ID, license, passport and CC, and am told unless I have an account at the bank they will not honor it for deposit in my bank. How can this be legal?
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 Assuming that you have provided identification that meets the requirements of those banks, their refusal to cash the checks (assuming the checks themselves are "good") could be considered what's called "unlawful dishonor" of the checks. Unfortunately, the only party that can pursue a bank for unlawful dishonor of a check is the party that issued the check.
It's been fairly well established that a bank can set its own reasonable identification standards, and assess a fee for cashing checks drawn on it, unless a state's laws prevents it. The bank can also refuse to provide cash if its branch office does not carry sufficient cash. We are not aware of any law or regulation that would permit a bank to refuse as a matter of policy to cash checks drawn on it when payable to persons who are not depositors there.
There doesn't seem to be a viable way for you to take those banks to task. You are, of course, always able to lodge a complaint with a bank's senior management and/or with its state or federal regulator. Unless a complaint can convince a bank to change such a policy, you are left with the option of depositing the check in your own bank account.
Published on BankingQuestions.com 8/28/08
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