Compliance Question of the Week
How long does a stop payment order remain in effect?
March 1, 2011
If the member requested the stop payment orally (such as over the phone), the stop payment only remains in effect for 14 days. The member can extend the time period that the stop payment remains in effect by making a written stop payment request. This would extend the effectiveness of the stop payment to a total of six months.
- A member calls the credit union and has the credit union write a check to a third party. The member later calls and stops payment on the check. The third party claims that he is a holder in due course, and that the credit union has to pay the check. Who is correct?
- Can a credit union stop payment on a cashier’s check, tellers’ check or certified check?