Can a bank legally stop payment on a cashiers check if not lost or stolen?

I received a cashiers check for $2000 and deposited it the same day as drafted. The check was real. Later that week my bank returned the check stop payment. The check was payable to me and deposited in my account. There was no fraud or theft involved. I was told the payee wanted to stop payment on the check.

Asked on August 18, 2011 Indiana

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

A bank in this country can place a hold or stop payment on any private, business or cashier's check if the bank is suspicious of it or if the maker instructs the bank to do so. This is what happened on the $2,000 cashiers check that you received.

If the bank did not follow the maker's instructions and you ended up receiving the proceeds from it, the bank could very well be responsible for the $2,000 being returned to the maker.

The maker instructed the bank to stop payment on the check. There is some issue between you and the maker of the $2,000 check that needs to be resolved between you two so you can actually have cash in hand.

Good luck.


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