Credit Union, Banks & Cheques

MyNameIsMethos

Hey guys, as the title suggests:

A person walks into a credit union to lodge a cheque into their account. On the day, no problem; cheque is lodged.

Now. If the banking institution from which the cheque was written maintained that the lodger were to owe money to them, will said banking institution simply rob the cheque?

Rym Shanley

A cheque can only be debited to the account it's written on

MyNameIsMethos

That doesn't clear up matters.. Thank you none the less.

Person A writes cheque to person B. Person B lodges said cheque to credit union. Person B is in debt to the banking institution from which the cheque came, according to said banking institution. Will the credit union be able to cash said cheque, or whatever the exact term would be in this circumstance, so that it will appear in person B's credit union account or will the banking institution rob the cheque?

Should the cheque be crossed before it goes to the credit union? Would this cause any change in the matter? Should person B return the cheque to person A, requesting cash in lieu?

phormium

A bit convoluted!

Assuming person A has sufficient money in their account the cheque will be cleared and the funds will be in person B's credit union account.

Bank are unlikely to even know the cheque was payable to B as it will just be debited automatically, now if it was bouncing due to A not having enough money then they would probably have a look at the copy cheque but otherwise I think it very unlikely. Bank staff don't physically look at every cheque debited on a daily basis.

MyNameIsMethos

Epic, thanks Phormium

allthedoyles

you have nothing to worry about ...........the cheque is payable to you so the institution cannot rob your cheque.

however if you owe money to the cheque issuer ,they can of course follow up on o/s amount ,but nothing to do with your cheque payment.