My friend has a loan from me and pays me monthly. Three months ago I mailed the check to my bank, but they never received it. My friend deducted the stop payment fee from his most recent payment to me, but I don't feel that I should be the one paying the fee since the check was never deposited into my account. Is there a law that says who should pay this fee? If so who?
Also I endorsed this check and wrote "for deposit only" as well as my account number. Is this a safe thing to do?
There's no law concerning who should end up paying the stop payment fee in such a situation. Your friend obviously feels he shouldn't have to absorb the loss, since he didn't lose the check. Apparently, he feels that since you're the last one to have seen the check, you should cover the fee.
Since you obviously didn't agree in advance how such a situation would be handled, it becomes something you'll have to work out between yourselves. If you feel strongly about not wanting to pick up the tab yourself, suggest splitting the cost between you.
The way you endorsed the check is standard. You might ask your bank if it would accept unendorsed checks from you for deposit by mail. That might make it less likely for a check to be stolen and misdirected into someone else's pocket.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
There's no law concerning who should end up paying the stop payment fee in such a situation. Your friend obviously feels he shouldn't have to absorb the loss, since he didn't lose the check. Apparently, he feels that since you're the last one to have seen the check, you should cover the fee.