Stop payment

Posted By: slrmm530

Stop payment - 12/08/10 06:37 PM

We accept verbal stop payments on share drafts. We then mail out a form for the member to sign and return. We have on the form that the stop may be removed if the sign form is not returned in 14 days. But we do not track them so the stops will stand on for 6 months regardless of if we have a signautre. Is this ok? As a side note we do allow the member to put a stop on through our homebanking and telephone system with out signatures.
Posted By: madukes

Re: Stop payment - 12/16/10 09:26 PM

Our procedure is the same (I do not know if we remove the stop if the signed authorization is not received). I think you could probably end up getting into trouble if you do remove a stop and the check was paid because of it - but this is just my opinion.
Posted By: Deputy Dawn

Re: Stop payment - 12/17/10 01:40 AM

We set the release for the stop payment for 14 days. When the signed stop payment form is returned, we update the release date for 6 months.