I wrote a check from a business to a business. This was done under threat of physical harm. I immediately called my bank and placed a stop payment on it. The other business, who does not have an account with my bank, took the check to a branch location and they cashed it. I have gone round and round with my bank and have gotten nowhere. Is it appropriate for my bank to cash a check made out to another business who does not have an account with them?
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While it is not "best practice," there is nothing illegal about negotiating a check payable to a business, whether or not it maintains an account with the cashing bank. That leaves the question as to whether you placed the stop payment order in time for the bank to act on it. That's a question that can only be resolved by understanding the operational environment for the bank and the times at which your stop payment order was received and the check was negotiated.
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While it is not "best practice," there is nothing illegal about negotiating a check payable to a business, whether or not it maintains an account with the cashing bank. That leaves the question as to whether you placed the stop payment order in time for the bank to act on it. That's a question that can only be resolved by understanding the operational environment for the bank and the times at which your stop payment order was received and the check was negotiated.
