Little-known cheque law
This isn't really in the payday loan realm of topics, but I though it was worth sharing anyway. Money Mart has taken a Vancouver Sun columnist to court using an obscure Bills and Exchange Act violation. Apparently if you place a stop-payment on a cheque that is then subsequently cashed at Money Mart (or any other cheque casher), you, the cheque writter, are liable for the amount of the cheque:
Before you write a cheque, take note of this little-known law
Labels: Media_Coverage
posted by Advance View @ 9:05 AM
1 Comments
1 Comments:
Whether you cash a cheque at a cheque cashing institute or a bank, the same laws apply. The cheque cashing institutes, as well as the banks are all governed by and protected by the Bills of Exhange Act. Placing a stop payment on a cheque is simply a service that a bank provides, it is not a legally binding contract. What is legally binding, is when you as the issuer of a cheque, sign the front of that cheque and issue it to an individual. Word to the wise - don't be stupid and issue a cheque to someone, until the job is complete and to your satisfaction.
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