Reasons For Stop Payment
by Andy Zavoina Guru bios
QUESTION: Does a customer have to have a reason to put on a stop payment? We recently had a new account individual write 3 checks to a bar over a weekend and then put a stop payment on the checks on Monday. She opened the account with $15.00. The total of the checks written to the bar was $255.00. Upon talking with the bar we realized she cashed the checks. Obviously fraud.
ANSWER: The customer does not have to provide a reason to stop payment and justification to the bank is not required.
In this case, if there is fraud, the bank is not party to it and should return the items that will not pay or pay the customer into a negative balance. Based on the scenario, it doesn't sound like you'll pay the items.
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