Our head teller keeps arguing with me that you CAN place a stop payment on a CC check at anytime. I say you can only place a stop payment if it's lost or stolen.

She previously worked for another institution and claims they placed stop payments on CC all the time. Has anyone heard anything about stop payments on CC that I am missing??? I was for certain it was only for lost or stolen. Maybe she is confused. . . .

Not before 90 days has passed from the date of issuance.

I cringed at 'stop payments all the time'.

IMO, stop pay shouldn't even be used in the same sentence as a cashiers check.

Fraud Pup is right, 90 days and after you have the Lost/Stolen Affidavit (or whatever it's called).

Chef, I believe that a Declaration of Lost Instrument is VITAL. Good point!

Every time I see the words "Stop Payment" and "cashier's check" in the same post title in Threads, I understand why compliance officers will always be in demand.

Please, please, please. Remind the misguided teller that she works for YOUR bank now, and should leave bad habits behind.

Outside of the Lost or Stolen argument, is there ANY other reason that we can place a stop payment on a cashiers check?

Okay - I'm channeling Joan Crawford here......

NO STOP PAYMENTS ON CASHIER'S CHECKS....EVER!!!!!

Even if the Cashier's Check is lost or stolen, you cannot put a "Stop Payment" on it. You can flag your system and return it for endorsement reasons since if it's lost or stolen then the endorser will probably not be genuine.

Also, when the Cashier's Check is more than 90 days old, you can return it unpaid under the UCC.

But no STOP PAYMENTS!!!!

LOL at Bonnie. I love that movie.

Thank you everybody! I know I'm right . . . .I just don't know what she is thinking!!

Hope everyone has a great weekend!!!!

A technical correction to your "not before 90 days" statement as to when a stop payment on a cashier's check may be placed.

The 90 day rule relates to when the customer's claim for a refund become enforceable not to when the stop payment order is placed.

The stop payment order may be placed (assuming the customer claims the cashier's check is lost or stolen) on the same day the customer requests the stop payment order. The customer must wait until 90 days pass after the issuance of the cashier's check before the customer can get back their money. If the payee or a holder-in-due course presents the cashier's check for payment during the 90 day period the check will be returned due to the stop payment order BUT that person/entity will scream and your bank will then find out about the problem. It is at that time that you have to determine if the check can be paid or not.

The decision to pay the check or return the money to the customer is determined by whether or not the check was presented during the 90 day period (and the status of the presenter as being entitled to enforce the check's payment).

This decision process has nothing to do with WHEN the stop payment order is placed. If you tell your customer that the stop payment order may not be placed until after 90 days pass from the check's issuance date you are giving bad advice to your customer.

I do wish we would stop referring to these claim processes as stop payments. If you read the UCC, a stop payment only applies to a customer's deposit account.

We need a better term to describe the "flag" a bank will put on its cashier's check account when one its checks is subject to a lost/stolen/destroyed claim. I will admit that the "flag" is placed using the "stop payment" mechanism in the bank's DDA system.

And the bank in Mr. Lynch's discussion should not return the cashier's check that's presented during the 90-day waiting period, unless it wishes to insur the potential of added liability. Instead, the bank should review the check's indorsements for the authority of the presenter to enforce the check, and pay the check if the authority is there. That will mean that the lost/stolen/destroyed claim will be denied.

So, a bank puts a stop payment on the system for a cashier's check. The check is returned stop payment. What happens next?

What does a bank do if they cut a cashier's check for a loan and then something happened and they need the money back? I think this might the case, but not sure?????

The bank could be liable from the individual/entity who received the check in good faith. At the bank I worked for previously, we put a stop payment on a check for a customer who said the transaction was fraudulent. The bank was held liable by a check cashing company who took the check in good faith. If banks could stop payment on cashier's checks when it suited them, then the term 'cashier's check' wouldn't be any better than a personal check.

I am slightly confused! We place stop payments on cashier's check because our cc processing company allows us to do that. ????? What's up with that??????

Make the distinction between what's mechanically possible and what's legal. If you put on something you refer to as a stop payment in order to make the item reject on presentment, that's fine. If you actually send a cashiers check back "payment stopped" you bought yourself a law suit you will not win.

If its drawn on your bank and signed by your employee, then it's a cashiers check. As such, your bank "accepted" it at issuance and you cannot change your mind.