CBC article: Retiree out $300K after Canada Post loses inheritance cheque sent by registered mail | Page 2 | General financial discussion | Discussion forum

Norman1 said
Some of the MICR digits are punched out so the cheque isn't automatically processed and the funds debited a second time.

I didn't know that some of the MICR digits would be punched out. So, if the executor had issued a certified cheque in lieu of a bank draft, would it be easier to locate and stop? It cannot be processed automatically, so manual human intervention is going to be required. Does this add an extra level of security and the ability to enforce a Stop Payment order?

For example, if the account for the lost certified cheque is closed and a new instrument is issued (either certified or draft), shouldn't that guarantee that if the lost cheque is found and negotiation is attempted, it would be stopped immediately?

So, bank drafts and certified cheques cannot be cancelled and both can be counterfeited.

It would be a good idea if banks would keep a copy of issued bank draft or certified cheque.
And, bank customer, who purchased a bank draft or certified cheque also would keep a copy and share that copy with intended recipient after original bank draft or certified cheque would be lost or destroy by fire, etc.

Later bank can compare both copy's and also confirm recipient ID's (at least 2 or better 3) and happily transfer money to that confirmed intended recipient.

After that original bank draft or certified cheque, if ever found by someone else, would not be relevant anymore.

Quick and simple solution for this terrible problem.

The cheque could be endorsed on the back by James Johnson in blank or specially "Pay to the order of Abigail Khan". Abigail Khan would then be able to cash the cheque or deposit into a bank account in her name.

Norman1 said
The cheque could be endorsed on the back by James Johnson in blank or specially "Pay to the order of Abigail Khan". Abigail Khan would then be able to cash the cheque or deposit into a bank account in her name.  

Yes, I understand that the finder could fraudulently endorse it over to themselves. I think that banks are still forced to 'know their customers'; which is why there is so much damn security and background checks.

If someone walks into TD with the cheque and it is endorsed as suggested, I might think that such a large sum might trigger their 'know your client' clauses. I think that many years ago I encountered an instance whereby I was forced to open an account to establish my credentials, deposit the instrument, and then transfer/withdraw after they got to see all my personal information. I hope that age is not fogging my memory too badly. Maybe I wasn't exactly forced, but it might have been the most expedient solution.

Banks can be very stingy and sticky, when they so desire. This situation sounds like one of those situations.

Norman1 said
Original payee may have endorsed the certified cheque over to someone else.
There is a reason why cheques say "Pay to the order of" and not just "Pay to".  

Yes, I completely agree with you, thank you.
There is no easy solution for this problem, I see that now.

This is something that I have read in the news before, Certified cheque or bank draft lost by courier. For the courier, it's just another parcel lost enroute to its destination.
I only used these types of payments when a party involved is an unknown person or entity if there is no other choice or its the most efficient.
This form of cash transfers is really of a time before electronic fund transfers were readily available to the average bank account holder. I haven't used this form of payment in years.
These days the largest amounts I move is from myself to myself at another FI.
I primarily use EFT if the amounts are within their limits. Alterna Bank is one of my FI's. Alterna sending amounts are significantly less than the receiving amounts so I tend to send cash there by EFT but I then write cheques to transfer out. Lately I have been using the Tang app on Android to photo image my own
cheques to deposit.
After reading this , I don't think I will be writing another certified cheque again. Worst case scenario is to write a cheque, send by currier express mail and track. if something just doesn't look right . Initiate a stop payment ASAP. Still not guaranteed to go flawlessly , but a better chance of success.

Just some fyi’s

Canada post will only insure a cheque for the value of a piece of paper.

Transferring registered funds to another FI requires a cheque. Who is on the hook if it’s lost?
People’s Trust does an EFT between them and Oaken. Whew.

Well, well, well, the envelope has now been found! Behind a drawer in the post office, no less.

https://ca.yahoo.com/news/retiree-shock-canada-post-finds-205359512.html

Power of media. When a story gets exposed, everyone works twice as hard to actually try to solve the problem.
As powerful as ‘I will speak to your boss instead’ 🙂