Cheque Cashing places

Greedo

Guest
I was having a coffee today outside and across the road there was one of these places. "Cheque Centre" it was called.

They had a big ad in the window saying "No bank account? or why wait 5 days and beat your bank? no problem. We cash all cheques, wage cheques etc.... all cheques considered. Get your money today!!! etc..."

Now as I'm a curious git and the question I have is how does this work?

If for arguments sake I had a cheque made out to Mr Greedo from some company and took it in how can they leagally cash it? If I had a cheque made out to Mr Smith I'm pretty sure if I went into my bank I couldn't try and cash it in my Mr Greedo bank account so how can they get the cash from a cheque made out in someone elses name????

I'm puzzled
 

accountantpete

Legendary Member
If the cheque is crossed and bears the words A/C Payee Only then that cheque has to be paid into that persons account. If it doesn't have the words a/c payee it can be transferred to another person with a bit of scribble to that effect on the back.
 
OP
G

Greedo

Guest
accountantpete said:
If the cheque is crossed and bears the words A/C Payee Only then that cheque has to be paid into that persons account. If it doesn't have the words a/c payee it can be transferred to another person with a bit of scribble to that effect on the back.
Cheers. Was just puzzling me.
 

buggi

Bird Saviour
Location
Solihull
All cheques are crossed and the words A/C payee are printed on as standard now, so you can't sign them over. i don't know how it works, unless technically they are a bank??? i think you can walk into any bank and cash a cheque in your name as long as you have ID, but i'm not 100% sure.

Maybe they make you open an account with them?
 

snakehips

Well-Known Member
I thought they were just money lenders.

You walk in with your cheque. They say 'sorry we can't handle this one, it's crossed/ AC payee / some other old crap , but we can lend you £50 at some extortionate rate of interest'.

I have no evidence to support this notion , it's just based on my natural cynicism.

Snake

My Library
 

killiekosmos

Über Member
I thought these places took a post-dated cheque from you, say for £120 and gave you £100. They then cashed it when your pay came through. They are just money-lenders


" Why wait 5 days for your bank to clear your cheque? If you use the Cheque Cashing service at any of our nationwide stores you can walk away with cash today, with commission rates starting from 1.99% and pay no registration fee.

What rate will I be charged?

Ask instore for details, commission from 1.99% applies.
"

https://www.chequecentre.co.uk/Default.aspx
 

Speicher

Vice Admiral
Moderator
There is an advert on a tv channel that offers to lend £70. If you borrow £70 for a week (approx, on the advert they just say "until next Thursday") they will charge you in the region of £9.

Without using a calculator can you work out the rate of interest? I did it my head at first, and thought that I must have got it wrong, then used a calculator. :biggrin::tongue:!

I hasten to add I am not thinking of borrowing from these sharks. Is there no regulation against this type of advert.
 

Sh4rkyBloke

Jaffa Cake monster
Location
Manchester, UK
The APR rate is usually about 300%
On the Short Term Loans page it actually says: "Typical APR 1845%"... sounds like a bargain!! :biggrin:
 

Klaus

Senior Member
Location
High Wycombe
http://www.bcca.co.uk/

apparently the cheque cashers pay them into a bank ... presumably with heavy recourse in case one bounces - that's why the APR is astronomical.

BTW, once I sent a cheque for an ebay purchase but forgot to sign it. Chap just emailed and said he'll sign it and bank - everything went through perfectly normal. I believe the checking of cheques is very selective ....
 

Debian

New Member
Location
West Midlands
APR is not a good indicator for very short term loans and is pretty much irrelevant. If a moneylender lends you £100 for a week and charges you £15 for the privilege then, whilst the calculated APR would appear to be astronomical the actual charge is, IMHO, reasonable.

The same APR on a three year £10,000 loan would be a different matter.
 

buggi

Bird Saviour
Location
Solihull
i got a very nice letter from Provident the other day telling me i could have £500. I just have to pay it back at 235% :biggrin:

my mum got an even more generous offer, at something like 2354.9%

how nice of them. i didn't even have to ask, the cheque just landed through the door.
 
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