-> stop payment
Payday Loan Canada
- A stop payment occurs when an accountholder asks their bank not to honor some payment. Stop payments can be made before the receiving party cashes a check and after the latter is delivered. Stop payment orders are mainly governed by banking regulations and state laws, and they can vary by bank and state. Banking institutions usually charge a fee to issue a stop payment. If the check is issued to pay back a legitimate debt, stopping payment may be regarded as an act of fraud. State fraud laws determine if this is considered a criminal act, and laws differ from one state to another.
Bank clients can request a stop payment in different ways, depending on the bank. Clients of Wachovia Bank, for example, can instruct the bank to issue a stop payment online. They can simply login to online banking using their password and user ID. The next step is to click customer service on their ‘my account’ page and click on ‘stop payment’. The bank will ask why the accountholder requests a stop payment order. In three or more steps, users can submit all the necessary information, and the stop payment request will be processed. The bank will typically request details on the pre-authorized payment or check, which has to be stopped, including the amount of payment and the payee. The bank will also need information on the bank account from which the amount has been sent.
While banks differ with regard to requesting a stop payment order, they cannot stop the payment if the check has been paid already. If you have received money by mistake, the sender has to request them back. In general, financial institutions include a provision on stop payment forms, which states that a stop payment cannot be guaranteed before the bank circulates the information around its offices and branches. Thanks to computer networks, banking institutions are able to quickly issue a stop payment order. However, if the client’s bank already paid the check, and you cashed it, this money is in your bank account and not the sender’s.
Usually, you have to call or visit your bank in order to request a stop payment. After you have made a request to stop a payment, it is a good idea to keep track of the time and date you made the request. Make note if you talked to a bank employee. If you requested a stop payment over the Internet, print the confirmation page. If you cannot get your check back, you may want to send a written request to your financial institution. Keep in mind that requests made by phone are valid up to 2 weeks. Written requests are followed for much longer (6 months). So, checks have to be void within this time frame. The bank will charge you a fee for each stop payment you make. You need to resubmit your request for a stop payment every 6 months until your check is finally returned.
The fee you will pay to the bank to issue a stop payment depends on the bank and the state where you live. Customers of Bank of America are charged $20 while those of Washington Mutual are charged between $18 and $29, depending on where they reside. In Maryland, you will be charged around $30 while in Oklahoma you will pay about $25.
Note that payments cannot be stopped on a certified cashier’s check. If you have a standard check, you may include in the memo line: ‘not valid after 6 months’. This helps, but you won’t be protected 100 percent.