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Stopping Payment on a Bank Check
I recently sent a certified check to my bank to payoff a vehicle loan. I gave the car up and just need to payoff the vehicle in order to get the title to transfer ownership. I overnighted the check to my credit union who signed for it in their shipping department. One day later they are telling me that they lost my overnight envelope with the certified check. The bank tells me that it will take 90 days to stop payment on the check. Is there anything that I can ask the credit union to do since they signed for this package? What are my options?
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 First, this video on lost cashier's checks may help you out on getting a replacement. I would ask the bank that will be replacing the check what the cost will be. Then tell the credit union that lost the first one that you want them to pay for this cost, and when they get the replacement, they should charge you interest on the loan only to the day they received your check. Because they had the funds then, they shouldn't charge you interest because of their mistake.
If you need the title to transfer ownership and not lose a sale, I would try to get your bank to tell the credit union that they will have funds coming, and see if the bank will guarantee that. So long as the old check doesn't turn up for payment, you will be fine. If the credit union accepts that this is their error and accepts the bank's guarantee of payment, they can release the title so your sale can happen. The bank then sends the replacement check directly to the credit union. Your bank however, may be hesitant to guarantee funds. A lot of this depends on how good your relationship is with your banker, and if their policy even allows them to do this.
Good luck. We're sorry that you had this problem, but errors do happen and likely your credit union processes hundreds and thousands of payments every day. Errors like this are rare, but they can happen. When they do and there is proof it was their error, they should make it right.
Published on BankingQuestions.com 2/06/07
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