Legal Question in Banking Law in Pennsylvania

Who Is Responsible for Paying Bank for checks cashed

I cashed two checks totaling $375.00 for a friend who said that his bank was closed. The checks were made payable to me and I endorsed them on the back. This week the checks were returned to my bank marked ''Insufficient Funds'' and my bank says I am responsible for payment of the checks plus any bank fees. How can I be responsible when the checks were made payable to me but I didn't sign them. He has a different bank than mine. The money was given to him. I was only trying to do him a favor.


Asked on 2/28/06, 8:29 pm

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Who Is Responsible for Paying Bank for checks cashed

No good deed shall go unpunished.

When you negotiated the check you accepted the bank's rules for responsibility. generally, when you get a check the bank acts only as your agent in collecting the amount due. You are still responsible for it. You negotiated the check no matter who took the cash away fro the bank.

You have a few choices. If you cannot immediately collect from your "freind", learn your lesson and walk away from this matter. Sue your freind in small claims court. Or hand the check to the police and file a criminal complaint for passing a bad check. I like the third as you get rid of the check and a problem freind at the same time.

Regards,

Roger Traversa

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Answered on 3/01/06, 10:12 am


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