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Check cashing fraud?


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My brother sent a $800 money order (written to my sister) to a credit card company with his payment stub. He also sent a $214 money order (written to the credit card company) to my sister. My sister got the letter and told my brother what he did. The credit card company had not recieved the the check when he contacted the them and explained the situation and requested the money order returned.

When the credit card company recieved the payment a few days later they applied the $800 to his bill of $214 and sent a letter telling him that he had a $586 credit.

He would be happy to get just the $586 as a cashable check but the company does not seem to honor his request. Is there some legal issue that he can use as a threat to get the company to co-operate? Have they done something illegal by cashing a money order written to someone else?

Any suggestions would be appreciated

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All the more reason to be very careful when mailing payments.

Once a friend of mine had two loans with National City. A vehicle loan for about $300 and a personal loan for about $100. He mailed the checks together with their individual coupons in one envelope, to save postage. He did this a couple of months in a row. This was WAY WAY before online banking. Previously he went into the bank and paid in person, but he changed shifts at work and was at work when the bank was open.

His vehicle was repossessed. He went to National City to complain and they checked his vehicle loan and he had not made a payment in 12 weeks.

They checked his personal loan and the balance was half of what it should be. Turns out the clerks likely tossed away the vehicle loan coupon, and credited both checks to the personal loan for the past couple of months. Likely the personal loan coupon was on top, so everything else was dropped on the floor.

The National City said it was my friend's fault because you're only supposed to mail one payment per envelope. Of course nowhere is this written, the bank manager was being a pr!ck.

Money Orders are almost as good as cash, so it would be just like mailing cash to someone. I've not seen too many banks worry about who the check is made out to, You might even make one out to "Haywood Jawblomey" and see if the bank takes it.

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