There are some situations in which you are required to inform the bank that you have issued a check to someone and now you want the bank not to honor the check when it comes for cash receiving by the individual or check holder. This request is usually done on telephone for urgent basis and as soon the bank receives you call, it puts halt on the check and asks you to visit the bank and sign the form in order to make it legal and longer for banking purposes. The formal request by individual account holder is made by the stop payment letter.
When it’s required for you to Write Bank Letter to Stop Payment on a Check?
There are many scenarios and situations in which you need to immediately inform the bank and ask them to stop payment on a check. For example, you issued a check a few days ago and now when you balance your books, you find out that there is not enough balance in the account and the check will be dishonored so it’s important to stop the payment on the check. Another situation is when you sign a check and somehow it gets lost either by you or when you send it to someone by mail and he doesn’t receive it and you wonder where the check might be. In this situation, you should inform the bank about the mistake and ask them to stop the payment. Another situation is when you supplier or client doesn’t fulfill your requirements and you need to force him by stopping the payment on an earlier issue check.
How one should Stop Payment on a Check?
Arrange for the copy of the check in your records:
Before you go to the bank in order to put a stop order on a check, you should find the appropriate documents i.e. copy of the check or part of the original check in order to make it legalize.
Contact the bank that you issued the check for:
After that, you need to contact the bank first via telephone and when they put an immediate halt on the check, you need to visit the bank with proper documentations and sign the formal documents in order to make the stop permanent.
Explain to the bank employee why you want to stop payment on a check:
When you contact to the bank, you will be asked by the bank employee why you want to stop the payment on a check. Here you need to be honest either it’s a mistake by you or a simple misunderstanding between you and your client or supplier.
Understand that you will need to pay a little fee for stop payment on check:
When you stop payment on a check, the bank has to go through a long and complicated process and thus the bank will ask you to pay additional fees and charges in order to stop payment on a check. This payment depends on each bank and the country in which the bank is located.
Here is preview of a free sample Bank Letter to Stop Payment on a Check created as fillable PDF Form,
Here is download link for this Bank Letter to Stop Payment on a Check,