Stolen Check w/Stop Payment Presented-Procedure

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Question:

Our customer reported checks stolen on their account. They filled out the necessary forms, and we placed an alert on their account regarding the stolen checks and check sequence numbers and placed stop payments on the stolen checks. The following day, one of the stolen checks was presented for cash. However, the teller told the person we could not cash it because there had been a stop payment placed on the check. She did NOT give the check back to the person, but she did let the person leave the bank. Was it the bank's responsibility to call the police while the person was still there or should we have just contacted our customer and let them handle the matter with the police department?

Answer:

First, why would you ever leave an account open under these circumstances? The account should have been closed and a new account should have been opened. Checks coming in with the account number on them does not represent your only risk or liability in such a situation.

Second, you had the potential perpetrator/thief on-site and failed to act. The police should have been called and additional information, such as ID should have been requested and maintained and the individual should have been delayed, unless the employees felt there was an immediate safety risk presented.