# So my roommate is getting Free Money, what the heck? **URL:** \ **Category:** Factual Questions\ **Created:** [April 5, 2005, 7:00am UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811 "2005-04-05T07:00:12Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![UncleBeer](https://avatars.discourse-cdn.com/v4/letter/u/977dab/32.png) [@UncleBeer](https://boards.straightdope.com/u/UncleBeer)\ **Post date:** [April 5, 2005, 2:08pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/21 "2005-04-05T14:08:40Z")
How is his mother cashing/depositing checks made out to him? ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [April 5, 2005, 2:11pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/22 "2005-04-05T14:11:22Z")
I recommend that he ask his mother to forward the check, along with the envelope and all paperwork that came with it to him so he and you can examine it. Since you mentioned this is a roommate, are you at college? If so, there may be a legal referral service through the school and it may be worth it to ask an attorney about it. ---
**Author:** ![Richard\_Pearse](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/richard_pearse/32/13144_2.png) [@Richard\_Pearse](https://boards.straightdope.com/u/Richard_Pearse)\ **Post date:** [April 5, 2005, 2:19pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/23 "2005-04-05T14:19:34Z")
> [@UncleBeer](#): > > How is his mother cashing/depositing checks made out to him? Presumeably she’s depositing into HIS bank account. No problems with that, anyone can deposit money into someone elses account. ---
**Author:** ![stpauler](https://avatars.discourse-cdn.com/v4/letter/s/9d8465/32.png) [@stpauler](https://boards.straightdope.com/u/stpauler)\ **Post date:** [April 5, 2005, 2:46pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/24 "2005-04-05T14:46:08Z")
> [@1920s Style "Death Ray"](#): > > Presumeably she’s depositing into HIS bank account. No problems with that, anyone can deposit money into someone elses account. But wouldn’t he have to endorse the check? ---
**Author:** ![Richard\_Pearse](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/richard_pearse/32/13144_2.png) [@Richard\_Pearse](https://boards.straightdope.com/u/Richard_Pearse)\ **Post date:** [April 5, 2005, 3:08pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/25 "2005-04-05T15:08:43Z")
> [@stpauler](#): > > But wouldn’t he have to endorse the check? Perhaps there’s a nationality disconnect here. In my country if I’m given a cheque which is made out to my name, I can go and deposit it into my bank account. I don’t need to “endorse it” I don’t even know what that means. If I have a cheque and it’s made out to someone else then I can go and deposit it into _their_ bank account with no problems (I will need their full name to be sure the bank teller brings up the correct account). ---
**Author:** ![dnooman](https://avatars.discourse-cdn.com/v4/letter/d/839c29/32.png) [@dnooman](https://boards.straightdope.com/u/dnooman)\ **Post date:** [April 5, 2005, 3:17pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/26 "2005-04-05T15:17:17Z")
Endorsing a check means that you sign the back of it in order to somewhat validate it. ---
**Author:** ![Uncommon\_Sense](https://avatars.discourse-cdn.com/v4/letter/u/f9ae1b/32.png) [@Uncommon\_Sense](https://boards.straightdope.com/u/Uncommon_Sense)\ **Post date:** [April 5, 2005, 3:21pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/27 "2005-04-05T15:21:39Z")
> [@Mangetout](#): > > -A week or so later, your own bank calls you to tell you that the check you paid in is bogus and will not actually be credited to your account > -Meanwhile, Mr scammer is busy disappearing with your money. Yeah, but aren’t you writing a check on the presumed money that cleared the account of the scammer. So, when you write a check to ‘repay’ the $4,000 you are really writing a bad check. There really aren’t funds to clear the check from the get-go, so they wouldn’t have your money. Right? The scammer’s check never really credits your account therefore the check you write back to the scammer would also be bad. What am I missing? ---
**Author:** ![Mollie\_Magill](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mollie_magill/32/20882_2.png) [@Mollie\_Magill](https://boards.straightdope.com/u/Mollie_Magill)\ **Post date:** [April 5, 2005, 3:27pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/28 "2005-04-05T15:27:07Z")
In order to deposit (not cash) a check, you only need to write “for deposit only” and the account number on the back. You do not have to actually sign the check. ---
**Author:** ![Mangetout](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mangetout/32/19_2.png) [@Mangetout](https://boards.straightdope.com/u/Mangetout)\ **Post date:** [April 5, 2005, 3:29pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/29 "2005-04-05T15:29:18Z")
> [@Uncommon Sense](#): > > Yeah, but aren’t you writing a check on the presumed money that cleared the account of the scammer. So, when you write a check to ‘repay’ the $4,000 you are really writing a bad check. There really aren’t funds to clear the check from the get-go, so they wouldn’t have your money. Right? > The scammer’s check never really credits your account therefore the check you write back to the scammer would also be bad. > > What am I missing? Depends on the balance of your account or the kind of overdraft facility you have, I suppose - I’m pretty sure I have heard of some odd cases (but with forged Western Union payments on eBay) where the funds really did appear to have cleared to the victim’s account and were able to be drawn upon, only to leave him deeply in the red a while later when the payment was declared fraudulent and debited from his account. It may be I heard this wrong or misunderstood it though. ---
**Author:** ![missbunny](https://avatars.discourse-cdn.com/v4/letter/m/76d3ee/32.png) [@missbunny](https://boards.straightdope.com/u/missbunny)\ **Post date:** [April 5, 2005, 3:42pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/30 "2005-04-05T15:42:14Z")
I get checks all the time from organizations I’ve never heard of. Sometimes they are sent by some kind of bank and sometimes by something that sounds like a regular business. But they are all loan checks, which if cashed, means I agree to the terms of the loan. I got one this weekend for $5,000, which when repaid, would cost more than $3,000 in interest. They don’t say they are loans except in the 2 pt. typeface on the attached letter. Just they scream that “This is FREE money to do whatever you want with!!” I wouldn’t count 100% that your friend’s mother has read the fine print, if there is any. He better get copies of these checks and tell his mother to stop depositing them until he verifies what they are. Lastly, I can’t believe that any company or organization just gives away thousands of dollars to random people for no reason whatsoever. This alone should make your friend suspicious enough to know that this is either some kind of scam or some kind of mistake. ---
**Author:** ![missbunny](https://avatars.discourse-cdn.com/v4/letter/m/76d3ee/32.png) [@missbunny](https://boards.straightdope.com/u/missbunny)\ **Post date:** [April 5, 2005, 3:45pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/31 "2005-04-05T15:45:16Z")
> [@](#): > > I’m pretty sure I have heard of some odd cases (but with forged Western Union payments on eBay) where the funds really did appear to have cleared to the victim’s account and were able to be drawn upon, only to leave him deeply in the red a while later when the payment was declared fraudulent and debited from his account. > It may be I heard this wrong or misunderstood it though. Isn’t this exactly how the Nigerian scam works? (Not just with Western Union, either.) ---
**Author:** ![HeadNinja](https://avatars.discourse-cdn.com/v4/letter/h/b4bc9f/32.png) [@HeadNinja](https://boards.straightdope.com/u/HeadNinja)\ **Post date:** [April 5, 2005, 3:54pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/32 "2005-04-05T15:54:07Z")
Ditto on the loan checks. My mailbox gets them all the time. Usually the rate is right around the state usury ceiling. Also included are massive late fees and huge prepayment penalties. Have him get a copy of the check, or the accompanying paperwork to figure out what it is. ---
**Author:** ![Waverly](https://avatars.discourse-cdn.com/v4/letter/w/57b2e6/32.png) [@Waverly](https://boards.straightdope.com/u/Waverly)\ **Post date:** [April 5, 2005, 4:09pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/33 "2005-04-05T16:09:40Z")
> [@HeadNinja](#): > > Ditto on the loan checks… Err, welcome to the SDMB. We have so many Ninja’s registered here already; are you their leader, or just the most proficient at oral gratification? ---
**Author:** ![Richard\_Pearse](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/richard_pearse/32/13144_2.png) [@Richard\_Pearse](https://boards.straightdope.com/u/Richard_Pearse)\ **Post date:** [April 5, 2005, 4:19pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/34 "2005-04-05T16:19:49Z")
> [@Uncommon Sense](#): > > Yeah, but aren’t you writing a check on the presumed money that cleared the account of the scammer. So, when you write a check to ‘repay’ the $4,000 you are really writing a bad check. There really aren’t funds to clear the check from the get-go, so they wouldn’t have your money. Right? > The scammer’s check never really credits your account therefore the check you write back to the scammer would also be bad. > > What am I missing? If you already have significant funds in your account then your cheque will be drawn on your own funds. Once the original cheque bounces you will be minus the original cheque _and_ minus your own cheque. We don’t endorse cheques here. ---
**Author:** ![Uncommon\_Sense](https://avatars.discourse-cdn.com/v4/letter/u/f9ae1b/32.png) [@Uncommon\_Sense](https://boards.straightdope.com/u/Uncommon_Sense)\ **Post date:** [April 5, 2005, 4:26pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/35 "2005-04-05T16:26:03Z")
> [@Mangetout](#): > > Depends on the balance of your account or the kind of overdraft facility you have, I suppose - I’m pretty sure I have heard of some odd cases (but with forged Western Union payments on eBay) where the funds really did appear to have cleared to the victim’s account and were able to be drawn upon, only to leave him deeply in the red a while later when the payment was declared fraudulent and debited from his account. > It may be I heard this wrong or misunderstood it though. Sounds like check kiting, where there are false deposits made and withdrawn before the bank realises what happened. Usually falls apart pretty fast now that checks are supposed to clear in 24 hours. ---
**Author:** ![TellMeI\_mNotCrazy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tellmei_mnotcrazy/32/3419_2.png) [@TellMeI\_mNotCrazy](https://boards.straightdope.com/u/TellMeI_mNotCrazy)\ **Post date:** [April 5, 2005, 4:33pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/36 "2005-04-05T16:33:03Z")
I always understood kiting to be not so much depositing and withdrawing funds but writing a check for an amount over the purchase, and using that overage to deposit into your account, thus covering a check previously written - and so on until you actually have your own deposit to make (a paycheck etc). Kiting being the sort of precarious gliding from check to check, using each check to cover the one before it. ---
**Author:** ![TellMeI\_mNotCrazy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tellmei_mnotcrazy/32/3419_2.png) [@TellMeI\_mNotCrazy](https://boards.straightdope.com/u/TellMeI_mNotCrazy)\ **Post date:** [April 5, 2005, 4:35pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/37 "2005-04-05T16:35:22Z")
Of course a little internet research shows that what I thought isn’t very accurate. Apologies. ---
**Author:** ![Figaro](https://avatars.discourse-cdn.com/v4/letter/f/ea666f/32.png) [@Figaro](https://boards.straightdope.com/u/Figaro)\ **Post date:** [April 5, 2005, 5:00pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/38 "2005-04-05T17:00:51Z")
> [@HeadNinja](#): > > Ditto on the loan checks. My mailbox gets them all the time. Usually the rate is right around the state usury ceiling. Also included are massive late fees and huge prepayment penalties. Have him get a copy of the check, or the accompanying paperwork to figure out what it is. Same here. Hearing the story, that was my first assumption. I get an unsolicited “you accept our loan if you cash this check” check every couple of months, and I shred them all with extreme prejudice. I think it’s the lowest form of debt entrapment. I have a bad feeling about your roommate’s financial future… ---
**Author:** ![BoBettie](https://avatars.discourse-cdn.com/v4/letter/b/4af34b/32.png) [@BoBettie](https://boards.straightdope.com/u/BoBettie)\ **Post date:** [April 5, 2005, 5:19pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/39 "2005-04-05T17:19:08Z")
Agreed on the loan check- I’m pretty sure that’s what it is. If I were him, I’d be checking to see if I could legally get out of the loan quickly. He’s going to owe a slew of money otherwise. ---
**Author:** ![rackman](https://avatars.discourse-cdn.com/v4/letter/r/d07c76/32.png) [@rackman](https://boards.straightdope.com/u/rackman)\ **Post date:** [April 5, 2005, 5:34pm UTC](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811/40 "2005-04-05T17:34:05Z")
> [@Number](#): > > [Wayback Machine](http://web.archive.org/web/20041009145407/http://users.rcn.com/pcombs/%24%24tablecontents.html) has it, minus most of the pictures. The updated site is at: [Patrick Combs Site](http://www.goodthink.com/writing/stories.cfm) [Previous page](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811.md?page=1) [Next page](https://boards.straightdope.com/t/so-my-roommate-is-getting-free-money-what-the-heck/297811.md?page=3)