Will a check cashing business need to hold my check before cashing it? Or only cash it partially? Its for 50K.

Question

I have a check for $50,000 issued to me from a life insurance company. I already decided to take it to a check cashing place despite the fees. (I don't want to discuss why I don't have a bank account). Will the check cashing business hold the check? If so, for hold long?

I spoke on the phone with the owner of one of these places. He said they may hold it for a day, or cash some of it now and give me the rest later. That doesn't seem right. Does anyone know for sure? I am in Michigan, if the laws matter.

Answer 1

They only want to use it while they have it. Today, you can verify a check with a phone call, or online. If they hold it for more than a day or two, they are using your money, & keeping their own in the bank to get more interest. What you need or want is not important to them. It is a shame, but understandable, why you don't want to use a bank, but they are convenient. How about going to ING? it is Dutch origin, & they offer high interest.
Good luck, & don't advertise your intentions, 50K is a lot to carry even for a short trip.

Answer 2

The short answer is most of the time they don't. A check cashing business is essentially making very high risk short term loans. It may not seem like much but if you charge someone 2.5% to cash a check, some charge more, and the check clears in two days that's an effective yearly rate of over 8000%. They can afford some losses. In the case you mentioned I believe if the lady recieved her cash from the check cashing place and then the check was denied she owes the check cashing place, especially if she also cashed the second check. The person presenting the check is ultimately responsable for the checks value. She would have a case against the insurance company for any fees she had to pay for the returned check but she owes the check cashing place for the money they didn't receive. They will go to court and they will get a judgement. and if someone decides that she knew the check was going to have a stop payment on it she could go to jail.

Answer 3

I would expect the check cashing place to hold it till it clears.

You can save a LOT of money by going to the bank on which the check is drawn and cashing it there. The fees these check cashing stores charge are so high, you might even still be ahead of the game if you have to fly to another State to get to that bank.

Incidentally, since the checks for over $10k, the check cashing store will need to file an IRS report when they cash it, and if you have any sort of IRS issues, they may be told to hold enough of the check to satisfy the IRS.

Richard

Answer 4

open a bank account. deposit the check. let it clear and get a cashiers check for 50K and close the account. that will get around any creditors. they are not that quick. i still think your a sorry *** for not paying your debts, but that should get you your money without paying crazy interest or fees. it will also take care of your security concerns. a cashiers check is as good as cash.

Answer 5

Put it in the bank. Cashing it isn't practical, and if they hold it and lose it you're going to have to go through a hassle to get a replacement.

Answer 6

I would try to have them issue you the check in someone elses name like a family member or sombeody you CAN TRUST. The C.Cashing place is gonna get alot of that money and you might get swindled.

Answer 7

i know a guy that owns a pawn-shop and trade-n-post, check cashing business!!!

i bought a Jaguar from him after i refinanced my house!!!
it shouldn't take more than a day to make everything clear!!

if it does, get youre check back right away!!!

i know this guy personally as a friend , there are a lot of crooked ones out there!!!

be cautious!!!!

Answer 8

I doubt they even will cash it; and if they do, bet they will hold it a lot longer than a day. Bet on a week at least

In this day and age, clearing is one thing; determining if it is a counterfit or fraud is another