Stop Payments

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$269.00

Presented by John Burnett

Do your systems and procedures allow you to "catch" ACH transactions that might be converted from checks that your depositors have stopped?

Does your institution permit depositors to place stop payments via email or other electronic methods? Is your coverage of these electronic messages enough to protect the bank from losses?

Not so long ago, stopping payment was an easy thing. The payment was either a check or an ACH item, and all you had to do was make sure you selected the right form for the customer to complete. Now, check conversions and image presentments have thrown confusion into the mix, and not all systems are designed to handle stops efficiently.

Dramatic increases in the use of ACH transactions by consumers have made it more important than ever that bankers understand the relationship between Regulation E's stop payment provisions and ACH rules. It's also important that bank employees understand what the Reg. E Commentary says about consumers' revocation of ACH authorizations, and how that relates to stop payments.

Bankers must understand the differences between the use of their systems' stop payment functionality and the actual right to stop payment. Not all checks can be stopped, and it's important that bankers know which checks will almost always get them into trouble if the bank refuses payment. Failure to understand this concept can lead to lawsuits, increased legal costs, and significant losses.

In this webinar, John will cover:

The difference between oral and written stop payment orders and the time limits on their validity

What happens after a stop payment has expired

The extent of the bank's exposure if it misses a valid stop order

How stop payment orders can be lifted or revoked

Who has the authority to issue a stop payment order

How ACH stop payment rules work

When a "missed" ACH stop payment may still be returned, and how

How to deal with claims an official check has been lost, stolen or destroyed

When to refuse a request to stop payment on an official check

Whether you can refuse to accept a stop payment if you think it's only to avoid an overdraft

Why a depositor may have to pay, even after payment has been stopped

The importance of making stop payments work on both paper and ACH items

When a stop payment order arrives too late

Participants in the webinar will better understand the rules for handling stop payment orders to protect their customers, and their banks, from losses!

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About the Speaker:
John Burnett is a 1979 alumnus of the ABA National Compliance School, and has served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA’s Stonier Graduate School of Banking, and is also a graduate of the BAI’s and the Massachusetts Banker Association’s Schools of Banking.

John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He joined Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT’s Board of Directors, as well as Clerk of the bank’s holding company.

John joined Glia Group, Inc. and became a part of the BankersOnline.com team in June, 2004.

Mr. Burnett was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and a former member of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA’s Truth in Savings Task Force, and has served on several ABA and Massachusetts Bankers seminar panels.

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