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There are specific rules for stopping payments on checks that you've written.

According to the Uniform Commercial Code Section 4-403(a), an oral stop payment order is binding on the bank for 14 calendar days. Section 4-403(b) says that if you confirm the stop payment order in writing within the fourteen days, the order is binding for 6 months and may be renewed in writing for another 6 months.

Pre-authorized transfers: Up to 3 business days before the transfer is scheduled to occur, the consumer can stop payment by notifying the bank orally or in writing.

It's important to be aware of the potential risk when authorizing Electronic Funds Transfer (EFT). On an EFT, your liability for an unauthorized withdrawal is limited to $50 if you notify the financial institution within two business days after learning of the unauthorized withdrawal. However, you could lose as much as $500 if you do not tell the bank within two business days after learning of the withdrawal.

Additionally, if you do not report an unauthorized transfer that appears on your statement within 60 days after the statement is mailed to you, you risk unlimited loss on transfers made after the 60-day period. That means you could lose all the money in your account plus your maximum overdraft line of credit.


Rich's Enterprises, L.L.C. , Prattville Alabama
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