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#2263404 - 12/09/21 05:59 PM Stop Payment Expiration
Susielou Offline
Gold Star
Joined: Aug 2005
Posts: 337
One a check has been returned for a stop payment, do you delete the stop pay on your system? We are having a debate if the stop should stay on for 6 months and then drop off. We want to be compliant with Reg E, UCC, and NACHA.

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Operations Compliance
#2263407 - 12/09/21 06:18 PM Re: Stop Payment Expiration Susielou
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 78,958
Galveston, TX
When to remove a stop payment from your system is a business decision, but if it was presented through RDC and the original check is still floating around, dropping from your system might cost you.
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2263845 - 12/21/21 02:43 PM Re: Stop Payment Expiration Susielou
John Burnett Online
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John Burnett
Joined: Oct 2000
Posts: 39,593
Cape Cod
Happy Birthday, Randy!

Adding to Randy's warning, don't forget that Reg E's stop payments on preauthorized EFTs are evergreen unless lifted by the consumer, and there is no guarantee that an Originator will honor Nacha's prohibition on re-presentment of a stopped entry.

That said, I agree there is a business decision here, and the chances an item will be re-presented fades over time.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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