CONTENT

  DEPARTMENTS



  DETAILS
Legend for Icons
 Article    Q&A

 Podcast  Video

 Blog  Discussions

PDF    Powerpoint
BankingQuestions.com Web

  Home >> Accounts >> Checking Accounts  
Why did Bank Honor Check without Funds Present?

I removed funds from my checking account to stop a check payment. Why did my bank honor the check even though there weren't funds in my account?


Banks have paid checks for their customers when there were insufficient funds for a very long time. When there is a mathematical error or a late deposit, as two examples, many customers are pleased with this service. The return of a check can cause fees both at the bank and the merchant who accepted the check. Returned checks can be embarrassing and you can find yourself "black listed", such that other merchants will no longer accept your checks.

Your bank has a procedure for you to request a stop payment on a check. That is what should have been used. Even then though, you should be aware that some states frown on making funds unavailable as you did. This could be classified as theft by check.

Many banks today offer overdraft services where you agree what they'll do, in advance. Many of these banks also allow you to to opt-out of any checks being paid when there are insufficient funds. You may want to ask your bank about something like this.

Published on BankingQuestions.com 1/24/08