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  Home >> Checks/Money Orders >> Checks You Received  
Bank Refused to Cash Paycheck

My bank refused to cash my paycheck. Do I have any legal recourse?


If the check was not drawn on your bank, your bank has no obligation to cash it. You should instead deposit it to your account and wait for the funds to be available, with the understanding that, if the check is not paid by the bank it's drawn on, you'll be liable to your bank for the check amount.

If your bank is the bank the check is drawn on, it could refuse to cash the check if there were not sufficient funds to cover it or if there were some other problem with it. They could also refuse payment if you could not identify yourself to their satisfaction. Assuming the bank had a legitimate reason for not cashing the check, your recourse is to your employer.

Published on BankingQuestions.com 5/01/08