Instances which might make a collecting banker to be liable for negligence

Failure to obtain a reference when a new account is opened – Ladbroke V Todd [1914];

Failure to follow up references, especially where the referees are unknown or doubted;

Failure to obtain employee’s reference from employer when a worker open personal account;

Failure to obtain and sight the original copy of a Certificate of Registration where an account is opened for a corporate customer;

Collecting for a company employee a cheque payable to the employer – A.L. Underwood V Bank of Liverpool [1924];

Collecting for the private account of an employee’s spouse/relatives a cheque payable to his employer;

Collecting for the private account of an agent a cheque drawn by him on his principal’s account- Morison V London County and Westminister Bank Ltd [1924];

Collecting cheques for amounts which are inconstitent with the customer’s station/situation in life or business;

Collecting cheques crossed “Account Payee Only” for an account other that of the payee;

Collecting cheques for the account which had unsatisfactory operations – Motor Traders Guarantee V Midland Bank.