Topic: Stop Payment Orders
-
We were told that banks can accept stop payment orders over the phone, without the customer’s signature, provided that we send the customer a copy of the stop payment order. How can a stop payment order be valid if it is not signed within fourteen calendar days of giving the order?
—
by
We believe that you could alter your account agreements to eliminate the requirement that customers send written confirmations of oral stop payment orders. The Uniform Commercial Code (UCC) does not require a signature on stop payment orders, but you should check your existing account agreements and confirm that your policies do not require a signature…