10/20/2024
We currently have outside counsel providing what I believe is inaccurate guidance. However, I'm struggling to find resources I can use to refute their regulatory interpretations. Specifically, this applies to a consumer's right to stop payment under 1005.10(c). Can you please advise how these requirements apply to:
1. Preauthorized transfers for loan payments (we are the lender/servicer) drawn on both external (we obtain debit authorization) and internal deposit accounts; and
2. Preauthorized bill payments both issued against the bank's/vendor's account and debited directly from the consumer's account. We hold the consumer's deposit account and offer the bill pay service.
02/25/2024
We need an advice for below situation.
1. Our customer cashed a check for $9,230 from another bank at one of our branches on 11/21/23.
2. On 11/27/23 we received a return for this item as Stop Payment.
3. On 11/28/23 we processed a late claim returned to Fed and received the credit from Fed same day.
4. On 1/19/24 we received a late returned debit from the Fed to deal directly with the other bank. We contacted the other bank as they insisted that it wasn't a late return.
How can we resolve this situation and how we can ask other bank to pay us?
08/27/2023
We have a customer that placed a stop payment on a check. When the check cleared the check number was keyed incorrectly by the depository bank. Due to that happening the stop payment was not a direct hit, and it appeared on our Suspect List. The person checking off that list saw that the check number was different so they allowed the check to pay from the customer's account. Is our bank liable to pay the customer back for the check or does any liability lie on the depository bank?
01/02/2022
May any account owner sign a stop payment order even if that person is not the one who initiated the item?
07/25/2021
I was wondering if you could point me in the right direction as to where to find more information on compliance for paper checks? Whenever I place a stop payment on a paper check, there's a disclosure that says "this request will expire in 6 months in order to comply with regulatory requirements." For the customers who ask for a more in-depth answer, what can I tell them?
05/31/2020
If a customer requests a stop payment on an ACH debit (on the day of presentment), are we required to honor their request? Or since they've indicated they've revoked authorization, should we ask them to complete the WSUD instead?
05/24/2020
Are the stop payment rules different for business accounts than they are for consumer accounts?
05/17/2020
Are loan disbursement checks, escrow checks and accounts payable checks "official checks"?
02/09/2020
A customer placed a stop pay on a check for $1,600. The bank first processed the deposit as $16.00 so our system didn't stop it and the customer didn't realize it until several weeks later. I have looked everywhere and can't find any case similar to this. Can we return it and if so, for what reason, additional paperwork is needed?
08/25/2019
If a customer has a business checking account in which they require two signatures on checks, are we required to get two signatures on stop payments or will one suffice?