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Refusing To Cash A Check

Answered by: 
Barbara Hurst

Question: 
I recently went into a "Citibank" in NJ where the check was drawn from and I was told after having cashed mycheck there for 6 months that it was their bank policy to not cash checks over $1,000. for non banking customers. I explained how I've done so for a long period of time and they simply replied it is the banks policy. If I wanted to cash a check there for over 1,000. I would have to open an account. Is this legal? I've gone to over banks to ask what there policy is and they simply state that they charge a fee but cannot turn away a check drawn on their bank.
Answer: 

Unfortunately for you, the other banks are wrong - they CAN refuse to cash a check for a non-depositor, or they may choose to cash the check and charge for the service. If they refuse to cash a check for you at their bank that is drawn on their account, you have no action against them - and their liability lies not with you, but with the maker of the check. The maker has a contract with them that says they will pay any item that is correct and payable, bearing a legitimate and genuine signature. So if they don't pay the item (to you) the maker can yell about it, but you can't. The bank has a right to turn you down. Sorry!

First published on BankersOnline.com 10/1/01

First published on 10/01/2001

Filed under: 
Operations
Filed under operations as: 
Checks
IT

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