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Signature Required on Phone Stop Pays?
by John Burnett, BOL Guru
Guru Bio
Question: Do we need to have a customer's signature for stop pay requests over the phone?
Answer: That's a policy issue for your bank, in my opinion. The law in most states says that an oral stop order expires after two weeks if it's not confirmed in writing. If your bank sticks to the letter of the law, it should get a written confirmation or drop the stop at the end of the 14th day. That said, I believe, and you can check with bank counsel, that the bank can elect to inform its customers that it will alter the effects of the UCC and make oral stop orders effective for the full six month period that written orders are effective for. My only concern is that you make sure you inform customers of how critical it is that the information on the check to be stopped is accurate and that you read back to the customer what you have recorded before ending the call.
First published on BankersOnline.com 2/18/08
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