Answer:
If you act on a valid oral stop payment and return the item it is simply pointless to ask the customer to sign the stop payment order after the item has been returned. Ask your auditors why it would be necessary and, if you're looking for amusement, ask them what you should do if the customer refuses to sign.
I'm a fan of sending the customer a copy of any stop payment order put in placed based on oral instructions and requesting a signature. That gives the customer a chance to review the order for any errors that might appear. However, I would not really care whether the customer ever signed the order.
If she did not, the order would simply drop off the system in 14 days. If the check shows up thereafter, it will be paid.
First published on BankersOnline.com 3/14/11
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