We have a new customer that opened an account (10/27/04)with a Cashiers Check issued Oct 23, 2004. On 10/28/04, the customer came into the branch and got other cashiers checks to various businesses. Today, the issuing bank returned this cashiers check as a Stop Payment - Do Not Present Again.

I'm not sure on all the rules with Cashiers Checks - we would like to refuse the return, but I'm not sure we can. Does anyone have a quick answer? I'm just afraid of that 24 hour rule. Thanks!

Yeah, that's not right. A cashier's check's main selling point is that it cannot be stopped...it's guaranteed as long as it is not counterfeit. I would start by calling the issuing bank and discussing it with them. It would probably be most prudent to simply refuse the return.

Thanks Pup - We tried calling them, however they are a big bank in the area and not very cooperative with us smaller guys. How do you refuse the item? We physically have the check (not an operations person, just trying to ask the questions for them). Thanks!!

If contacting "Big Bank" by telephone isn't working for you, put your statements in writing via both regular and certified mail. Include a photocopy of the cashier's check, and state that you will deliver the original when BB agrees to honor the check. Then include a citation of UCC 3-411.

If that doesn't work, contact your attorney. In the meantime, freeze the account that was opened with the cashier's check to stop the bleeding.

...and remember, even BB has a regulatory agency. Get their address. One point for your letter: This is simple bad faith and if BB will do it to our bank, they will do it to consumers as well.

BB knows it can't stop payment on a cashiers check, but (like BB's everywhere) it relies on the schoolyard taunt: "What are you going to do, sue me?"

Ken's comments remind us that "BB" can also stand for "Big Bully."

Thanks guys! I really appreciate it! Maybe we could just drag them all out back and beat the .....

Sounds like fun, Pinkie...Good luck with this situation. Thanks for the cite, John.

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Maybe we could just drag them all out back and beat the ....

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That's usually my first reaction. Can't believe I forgot to mention it.