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I have a question

Londyn

Lurker
Jul 12, 2010
5
0
If a check is cashed at a financial institution one day, and the next day the person who wrote the check puts a stop payment on the check, is the stop payment valid? Is this legal? Does anyone know if there is any action that could be done about this type thing?

(Both parties have accounts at this same financial institution.)

Thanks in advance for your answers.
 
Also exactly what do you mean by "cashed." Depending on the timing: say you go into the bank and deposit a check, banks usually give you the benefit of the doubt, make that amount available to you immediately. The check, depending on the bank may not be verified for end of business day to 72 hours later. In this time frame if the check writer can still put a stop payment on it. Once its been validated tho you can not put a stop payment on the check. If you want the money back you have to file a unauthorized payment or a fraud report. This is also all subject to certain banks specific rules and procedures.
 
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By cashed I mean the bank gave cash back for the check. The check was not deposited.

Which party (the person cashing the check or the person who put the stop payment on the check) should file the unauthorized payment or fraud report and who does a person file that with?

Well obviously the check writer needs to file the report if they want the money back. The check casher already has the money. Now if the check casher got cash, and the check later was not honored by the check writer and the bank is demanding that money, there is little you can do but file legal action.
 
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The bank is honoring the stop payment after the check has been cashed, and telling the check casher that it will come back out of the check cashers account. Is there anything that the check casher can do in this situation?

I don't know. I'm curious as to whether they can touch your account, since the money never went there.

I would talk to a lawyer
 
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The bank is honoring the stop payment after the check has been cashed, and telling the check casher that it will come back out of the check cashers account. Is there anything that the check casher can do in this situation?
So your the check writer I am assuming? Do you mind explaining what the exact situation is. Cause if you signed the check the other person is going to have more power in the long run if it gets taken that far.
 
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By cashed I mean the bank gave cash back for the check. The check was not deposited.

Which party (the person cashing the check or the person who put the stop payment on the check) should file the unauthorized payment or fraud report and who does a person file that with?

Sometimes when "cashing" a check, not depositing, the money is taken from your account, and re-credited when the check goes through.

So in that case if some put a "stop payment" your account will not be re-credited, you will of just made a withdraw.
 
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So your the check writer I am assuming? Do you mind explaining what the exact situation is. Cause if you signed the check the other person is going to have more power in the long run if it gets taken that far.

I am actually the casher. Someone owed me money and then put a stop payment on the check after I cashed the check and we both bank at the same institution. I am having a hard time believing that a bank can legally put a stop payment on a check after it's been cashed all within the same financial institution and it was even the same branch in the same city.
 
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How does this work when an account balance is zero?
Overdraft fees, and you end up in collections and your account canceled if you don't pay it back in a timely fashion.


Since your the casher of the check, if the check writer signed it, and you didn't do anything wrong, like not providing whatever you were supposed to for the money. If you want to take it far enough, you will more then likely win in court.

As for the bank letting it still be stopped, even with a debit card, banks let you chargeback any payments 6 months to 2 years.

If its really a good amount of money and you cant work it out, you should talk to the bank about what to do next.
 
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