I put a stop payment on a check and a person in association with a store turned it into the an electronic funds transfer. Now the amount cleared the bank and I am out $1,000. Is this legitmate?
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If the check was made payable to Party A, Party A did not have any authority to allow the check to be converted into an electronic fund transfer (EFT). Only the issuer of a check can give the authority.
It is understandable that your bank may have missed the stop payment when paying the EFT, because that can happen to any bank. However, while you are currently out money, you can recover the funds.
Go to the bank. Do so promptly, so that the bank is able to recover the funds from the store that converted the check that it should credit back to your account. You should ask for a refund of any fees triggered by the EFT posting, too. The bank can recover its funds by sending the EFT item back. Its possible that the store or the original payee on the check may contact you in an attempt to enforce the original check. Depending on the circumstances, you might have to pay one of them, especially if you still owe the original payee money.
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If the check was made payable to Party A, Party A did not have any authority to allow the check to be converted into an electronic fund transfer (EFT). Only the issuer of a check can give the authority.