I went to my bank to put a stop payment on a check and the bank asked me the reason for doing this. I think this is none of their business. Are they really allowed to ask this and do I have to answer?
There is no legal reason for a bank to require you to give the reason for wanting to stop payment. You have the right to stop payment for any reason, as long as the bank has time to act on your request.
However, there are times when it will be helpful for the bank to know whether you have issued or will issue a replacement for the stopped check. That might be the case if you made out the first check for the wrong amount, or it got lost or destroyed. If the bank knows that you've issued a replacement, it's easier for the bank to bounce the correct check, and pay the replacement check.
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There is no legal reason for a bank to require you to give the reason for wanting to stop payment. You have the right to stop payment for any reason, as long as the bank has time to act on your request.
