Stop Payment Check Cashed Consequences and Liability Explained

If a stop payment check is cashed, the bank may still honor it, but you're not off the hook. You can still be held liable for the amount.

The bank's liability for a stop payment check varies, but in most cases, they're only responsible for up to $50. Beyond that, you're on your own. This is because you're the one who gave the bank permission to cash the check initially.

You'll need to take action to dispute the transaction and potentially recover your losses. This might involve contacting the bank, the payee, and your credit card company, if you used one to pay for the check.

You can stop payment on a check at any time before it's cashed. This is a good thing to know, especially if you've written a check for a large amount or to someone you don't trust.

To stop payment, you should contact your bank as soon as possible and notify them orally that you want to stop payment on the check. Some banks may request a written statement, so be prepared to provide one if needed.

You should also make notes in your own accounts regarding the stopped payment. This can help you keep track of the check and any related communications with your bank.

If your bank pays the check despite your stop payment request, they may be held responsible for any resulting damages. This is a risk you take when stopping payment on a check, so be careful and consider the potential consequences.

You can sue the person who wrote the check for damages if you've been paid with a stopped check. You'll need to file with the court and provide evidence of the check and your losses.

If you're considering stopping payment on a check, be aware that some banks charge a fee for this service. This is something to factor into your decision-making process.

Here are the steps to stop payment on a check:

A stop payment order doesn't last forever, and it's not just a matter of calling your bank to cancel a check. Banks typically specify the duration of a stop order in their fine print, and it's usually around six months, as seen with PNC and Citizens banks.

You might think that old checks are no good, but under federal law, a bank is not required to cash any check that's more than six months old, but they can. So, it's crucial to know the terms of the stop order process.

If a stop payment order expires, a bank can still cash the check, as seen in Carla Evans' case where her bank cashed a check three years after she put a stop payment on it. She lost $849 from her checking account as a result.

It's not just a matter of relying on the stop payment order; you need to take extra precautions to protect your account. If you don't want someone to cash your check, you need to take an abundance of caution to make sure that doesn't happen, as advised by Duquesne University business professor Tom Nist.

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Cashing a stop payment check at another bank might seem like a safe bet, but it's not foolproof. The employees of that bank won't recognize the stop payment, so you might get away with it.

However, if the paying bank finds out about the stop payment, they'll return the check to your bank, and your bank will debit your account for the money. You'll end up having to repay the money to your bank, essentially making the original stop payment pointless.

This can happen even if the other bank's employees don't know about the stop payment, so it's not worth the risk.

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Cashing a check at another bank can be a bit tricky if a stop payment has been placed.

The employees at the other bank won't know about the stop payment, so you might be able to cash it.

However, if the paying bank finds out about the stop payment, they can return the check to your bank.

Your bank can then debit your account for the money you received, leaving you with a negative balance.

If you're concerned about protecting your account from an expired stop payment order, consider using alternative protection methods.

Most banks, including PNC and Citizens, specify the duration of a stop order in their fine print.

Industry practice is to have stop orders last for six months, but this can vary depending on the bank.

To ensure your account is fully protected, ask your bank about extending the stop order for a fee.

Under federal law, a bank is not required to cash a check that's more than six months old, but they can still do so if they choose to.

This means that even if a stop order has expired, your bank can still cash an old check if it's presented to them.

To avoid this, take an abundance of caution and use alternative protection methods, such as closing the account or getting a new account number.

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