Is this Wrongful Dishonor?

Answered by:

Question:

A customer with charged off loans came in with a check drawn on another customer of this bank. The check had sufficient funds to cover the check. Since the payee of the check had charged off loans, are we required to cash the check?

Answer:

You are never required to cash a check when it is presented over the counter by a non-account holder. If your depositor's agreement is any good, that should be covered in your depositor's agreement.