Stop Payment Abuse/Theft by Check
by Ken Golliher, BOL Guru Guru BIOS
Question: We have a customer who is using one of the "Fast-Cash" facilities. Our customer is obtaining their "loan" check from the "Fast-Cash" business, using those funds and then placing a stop payment on the check that they are using as payment to the "Fast-Cash" location. We see a pattern; can we refuse the stop-pay order, or can we just close out the account?
Answer: The customer has an unfettered right to stop payment, even if it is being used to facilitate a fraud. However, when you become aware of the activity and allow it to continue, you are providing practical and moral assistance. Close the account. There is no chance that this is a profitable relationship anyway.
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