Cashier's check question (1 Viewer)

[Robert_Z]

Is it common knowledge that you cannot stop payment on a cashier's check? I had no idea. I bought something online, and when I got a bad vibe about the seller, I tried to stop payment on the check with my bank, but they said stopping payment was not an option. So now after dealing with this snake of a salesman, I am over $500 lighter in the wallet.

 

[BrianW]

Is it common knowledge that you cannot stop payment on a cashier's check?

If this is a genuine question, and not just a prelude to a rant (one to which you appear to be very entitled), then yes, I believe it is common knowledge that one cannot stop payment on a cashier's check.

I'm sorry if this is news to you, especially under the circumstances, and I wish you every success in resolving your dispute.

 

[Denward]

That's the whole point of a cashier's check, certified check, or money order. If you get paid with one of these, you know it's 99.99% as good as cash.

BTW, a little off topic, but can anyone explain the diff between a cashier's check and a certified check?

 

[Philip_G]

cashier's check is supposed certified funds, people can count on it not bouncing.
I can't tell you the difference between a cashier's and a certified though.

Just as a sidenote, I know some motorcycle dealers don't accept cashier's checks any longer, unless they can call the bank to verify them. They get stolen checks that have been typed in by a theif, or they're outright counterfeit.

 

[Robert_Z]

Well, I am 32 years old, but I had never written a cashier's check until this episode. I had no idea there were special rules for cashier's checks vs. personal checks. I just thought it would be cool to send a cashier's check for the heck of it. You know, a first time for everything. Plus, I did not want this person to have my bank account number which is on my personal checks, so I decided to send the cashier's. No one at the bank told me it could not be stopped until a few days later when I tried to put a stop on it. I guess to them it is common knowledge too.

 

[Don Black]

My bank has no problems stopping payment on a cashier's check issued by them (personal checks too of course). They charge a fee but can certainly do it.

 

[KyleS]

My bank has no problems stopping payment on a cashier's check issued by them (personal checks too of course). They charge a fee but can certainly do it.

Absolutely you can indeed cancel a cashiers check it just depends on the bank that you have. My parents had that happen with a horse they sold. They were paid by a cashiers check and they signed over the title to the horse (just like a car) and when they went to cash the check it bounced because the people put a stop payment on it. All they had to do is tell there bank that it was lost and you have to show your Cashiers check stub. My parents lost out on not only the Money but also the horse since they were not legally the owner anymore. Best of luck getting your money back from this ass.

KyleS

 

[Michael Reuben]

cashier's check is supposed certified funds, people can count on it not bouncing.

Not quite.

A cashier's check is drawn on the bank's account, not on yours. People are more willing to accept it, because they only have to rely on the bank's credit, not on the credit of the person providing the check.

A certified check is drawn on your account, but the bank locks up sufficient funds to cover the check (that's what it means to have the bank "certify" the check). So if the bank certifies you check for $100, your available balance is immediately reduced by that amount.

Cashier's checks can be stopped by the bank, since it's the bank's account, but the bank has to be willing to provide the service. Many will refuse to do so (unless you're a big customer) for fear of getting caught in the middle of a dispute between the payee and the payor.

M.

 

[Philip_G]

cashier's check
A check which cannot bounce because its face amount is paid to the bank when it is issued, and the bank then assumes the obligation.

 

[Brian Perry]

The distinction would be that it cannot bounce (unless, of course, the bank went under) but can be stopped.

 

[Yee-Ming]

My parents lost out on not only the Money but also the horse since they were not legally the owner anymore.

sounds like outright fraud to me, give people a cashier's cheque (sorry, used to Brit spelling ) and stop payment after they've handed over title. I hope the police were able to do something about this and your parents did all right? (sadly, the quote above makes it sound like your parents did not)

 

[Michael Reuben]

it's a matter of point of view, I suppose.

When I said "not quite", I was referring to your use of the term "certified funds". Unlike a certified check, a cashier's check does not represent a certification that the funds are there. People count on it not bouncing simply because the bank (unlike the customer) is presumed to have sufficient resources to honor the check.

"Certified" is a critical term when it comes to negotiable instruments. The general rule under the Uniform Commercial Code is that, once an instrument has been certified, payment cannot be stopped.

M.

 

[Robert_Z]

My bank has no problems stopping payment on a cashier's check issued by them (personal checks too of course). They charge a fee but can certainly do it.

Well folks, today was the clincher. After reading some of your posts, I decided to call my credit union today just to verify their policy. Today the answer was, sure we can put a stop payment on cashier's checks, but since this one has been cashed, there is nothing we can do.

I called them a couple of weeks ago BEFORE the check had cleared and asked for a stop payment and was told that they could not do that. To hear them tell me today that I could have put a stop on the check....ah man. I had to leave work I was so pissed.

They asked me why I did not ask to speak to someone else when I was told no. I said geez, I call all the time to check on my balances and see if certain checks have cleared. I've never doubted what I was told. Should I start getting second opinions or verifications on everything I am told?

I am proud of the fact that I did not get nastier than that nor raise my voice above 90 dB. But I tell you what, at this point it seems like I am screwed. Is there a counseling group to help me get over something like this? :frowning:

 

[Leila Dougan]

Robert, I would personally keeping climbing the management ladder until you reach someone that is willing to make your situation right. Call the corporate office, if need be. The bank really ought to compensate you (minus the stop check fee) because they're the ones that hired the dimwit in the first place.

 

[Michael Reuben]

Robert, does the bank record their customer service calls, and, if so, do they have a recording of your call? If you can document that you requested a stop payment, the bank may be legally obligated to compensate you. (I'm assuming you didn't send a written request.)

It's worth asking.

M.

 

[TonyTone]

A cashier's check is drawn on the bank's account, not on yours. People are more willing to accept it, because they only have to rely on the bank's credit, not on the credit of the person providing the check.

Really (no sarcasm intended)? So the bank isn't taking any money out of my personal (checking or savings) bank account whenever I ask them to draw up a cashier's check for X dollars? Cool--I think I'll go have my bank draw up a check for 10 grand right now! Yes, because of what a CC is, it's almost impossible for a person to pass one off as a bad check since said check was drawn with actual funds--unless you had it drawn electronically from your checking or savings account, in which case you might have a small window of opportunity to withdraw the funds yourself if the bank's computer system is slow to record the CC transaction.
Mind you, I'm not advocating fraud or anything of the sort...

Unless you're insinuating that a person's bank account is technically the bank's bank account...

Just confused as to the above statement because whenever I ask a bank teller to draw up a cashier's check, I am asked as to which personal account I want the money taken out of to cover the check (assuming that I don't just pay for it in cash)...

And a CC can usually be cancelled, but is dependent on the particular bank's policy. Bank of America (so I was told) has a 90-day waiting period on cancel requests; however, you can expedite the request to 30 days if you fill out a written form (mailed to you by the bank)--I believe it's a release of some sort--and mail it back to the bank. Of course, even 30 days may not be enough if the CC gets cashed before the bank receives your 30-day release consent.

 

[Philip_G]

I'm sorry to hear that :frowning:
I would have lost it right there.
unfortunately, experiences like your's with a credit union are exactly why I no longer give them my business.

 

[Robert_Z]

Robert, does the bank record their customer service calls, and, if so, do they have a recording of your call? If you can document that you requested a stop payment, the bank may be legally obligated to compensate you. (I'm assuming you didn't send a written request.)

I will ask, but a while ago I got a call from the rep I was talking to earlier today. He said he talked to one of the credit union bigwigs, and he said that since the check was cashed there is nothing that could be done, in spite of whether I asked for a stop payment or not. A click of the phone came soonafter.

 

[Michael Reuben]

So the bank isn't taking any money out of my personal (checking or savings) bank account whenever I ask them to draw up a cashier's check for X dollars?

Of course it is. Then the bank puts the money in its own account and issues a cashier's check.

M.

 

[Shayne Lebrun]

I will ask, but a while ago I got a call from the rep I was talking to earlier today. He said he talked to one of the credit union bigwigs, and he said that since the check was cashed there is nothing that could be done, in spite of whether I asked for a stop payment or not. A click of the phone came soonafter.

If you don't get satisfaction, find a local television station that has one of those 'consumer watchdog' guys and tell them your sob story. They'll kick some ass for you.

Barring that, letters to the editor and what not are always good.

Never be afraid to take a case to the court of public opinion, assuming you're in the right. Or, at least, believe that you are. And in this case, I'd agree that you are.