Full question:
If you cash a check made out to you, from another party and a lending company cashes it, are you responsible, if the check bounces or the person who wrote the check?
- Category: Debts and Credit
- Subcategory: Bad Checks
- Date:
- State: Washington
Answer:
A check involves three parties: the drawer, the drawee, and the payee. The drawer is the person who writes the check. For example, if I write a check to you for one hundred dollars, I am the drawer, you are the payee, and my bank is the drawee. The drawee is the bank that must pay the amount specified on the check.
When you endorse a check, you become the endorser, and the person to whom you endorse it is the endorsee. If you endorsed a check to a lending company, you are liable to them if the check bounces. The original drawer of the check remains liable to you.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.