Question & Answer

Question: We're trying to set up an automatic system for accepting stop payments. A customer would call our customer service number, and by entering their PIN and the account number, and then the check number, amount, and date, put a stop payment on a check. If the PIN is required to access, do we still need a written confirmation, or is the PIN good enough to confirm the stop for six months? We're trying to eliminate the need for mailing a confirmation, verifying information, etc.

Answer: The attorney we talked to says the Uniform Commercial Code tells what must be done to accomplish a stop payment, but it doesn't specifically state that you cannot vary your agreement with your customer. You should be O.K. with this, but you will probably want to modify your account agreement to reflect the change. And if you're going to charge more (or less) for the service, your DD disclosure will also have to be adjusted.

Copyright © 1997 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 7, No. 4, 3/97