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Bank Accounts - Stop Payment


Can I put a stop payment order on a cashier's check?

A cashier's check is drawn directly on the bank that issues the check, not on your account. Generally, a bank must honor a cashier's check when it is presented for payment.

However, a stop payment can be placed in the event of a lost or fraudulent cashier's check.

Can a bank place a stop payment on an electronic funds transfer?

Yes. You may stop payment of a preauthorized withdrawal (recurring monthly payments to a third party such as a life insurance company). You can do this by notifying the bank within 3 business days before the transfer is scheduled to be made.

You can notify the bank orally or in writing. However, if you notify the bank orally, the bank may require that you then provide written confirmation within 14 days. If you fail to provide written notice by the deadline, the oral stop payment order will no longer be effective.

Can the bank pay a check after I place a stop payment on it?

Generally, national banks honor a stop payment request. If you properly record a stop payment order and the bank cashes the check, the bank may be liable for the cashed check.

However, the bank is not liable if—

In addition, a written stop payment order often expires after 6 months. It can be renewed for another 6 months.

If you issue a stop payment order orally and do not confirm it in writing, it lapses after 14 calendar days.







Copyright 2007 by Mark McCracken , All Rights Reserved