HELP! We received a money order from a customer in exchange for a product. Unbeknownst to us, the customer placed a stop payment on the money order and has not returned the product. We contacted the bank which the money order was drawn on and were informed by them that there was nothing that they could do to remedy the situation. Is this true? Under what circumstances is a bank allowed to take back funds? (Is there any authority that governs banks in the U.S. which requires them to abide by certain rules regarding stop payments?) Does a recipient have any recourse with the issuing bank (other than a lawsuit) through which they can attempt to recover the funds that the bank took back? The money order was issued on the 15th of the month and two days later (the 17th) the bank implemented a stop payment at their customer's request. We are surprised at the suddenness of the transaction and that there is no bank to bank recourse for disputing a stop payment.

Consumers can stop payment for any reason and generally do not have to provide any explanation to the bank. The bank simply executes the orders.

You have a customer that owes you money. You will have to take legal action against them either with an attorney or potentially law enforcement. In some jurisdictions this may be categorized as theft by check. Seek advice of the police and or an attorney.

Following up on the above, if you are in a big enough city, your local district attorney may have staff dedicated to theft by check cases.

The editor/Pale Rider:

Thanks for the response! Much appreciated.