Consumer Financial Protection Bureau Guidance Highlights Varied Bank Policies for Stopping Check Payments
The Consumer Financial Protection Bureau (CFPB) provides guidance indicating that while all banks and credit unions allow account holders to stop payment on a check, the specific policies and procedures vary significantly between financial institutions. These variations include how a stop payment request is submitted (e.g., phone, online, written), the fees charged for such services, and the duration for which a stop payment order remains in effect. The CFPB advises consumers to contact their specific bank or credit union immediately to understand their particular process, as speed is crucial before a check is fully processed. While most state laws stipulate that a written stop payment request can prevent a check from being cashed for six months, some orders may expire after one year, requiring renewal or account closure to permanently prevent payment.
