You need to know all your rights and responsibilities in relation to cheques.
You should visit our specific related topics in the boxes at the top and the bottom of this page.
We provide you with direct access to the relevant Act of Parliament called the Cheques Act 1960. Just click on below.
We also provide you with a direct link to the Government legislation site where you can look up ALL Acts of Parliament and Regulations and Rules. An Act is also known as a Statute. A Regulation is also sometimes known as a Rule. This Government legislation site is still going through some teething problems. But you will be able to access all legislation and find specific Acts and Rules and individual sections.
Local & Private Acts
The law about "crossing" cheques changed in 1996.
To protect your cheques from being cashed by someone other than the person the cheque is made out to read on . . . .
'Not transferable' and 'account payee only'
Crossing a cheque with 'not transferable', 'account payee' or 'a/c payee' means that the cheque cannot be used by someone else. A cheque marked as 'account payee' can only be paid into the bank account in the same name of the person it is made out to.
Some people write 'only' after a/c payee. This makes it clearer to the person receiving the cheque but it is not necessary to add only.
This will help reduce cheque fraud, as anyone using the cheque can only put it into the account named on the cheque. But because only the person named on the cheque can bank it, it is very important that the name is correct.
Not negotiable cheques
This is not the same as 'non-transferable'. A cheque marked 'not or non- negotiable' can be transferred to someone other than the person it is made out to. But it still has to be paid into a bank account.
Do not accept a 'not transferable' or 'account payee' cheque if it has been transferred to you. Only accept it if it has been made out to you in the first place. Make sure your name is writ
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