ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If you suspect a check has been lost or stolen, you first need to contact your bank. If the check hasn’t already been cashed, then you can request that they put a stop payment on it. It’s a formal request that the check not be paid out by the bank if it’s deposited or presented to be cashed.

Detailed explanation-2: -What should I do? If you lost a check written to you without endorsing it, you should ask the person who wrote it to stop payment so no one else can cash the check. You can also ask the person for a second check.

Detailed explanation-3: -Contact your bank You must give your bank notice orally or in writing to request a stop payment. Banks recommend various ways to contact them, but generally you can make a request online, at a branch or by calling the phone number on the back of your debit card.

Detailed explanation-4: -A stop payment is a request from an account holder to a financial institution, such as a bank or credit union, to not process a payment. The payment may be a paper check or an automatic debit payment, like those you set up for a recurring subscription or bill.

Detailed explanation-5: -The cost for placing a stop payment on a check is up to $35 and it’ll remain in effect for 24 months. If you need to renew the stop payment after 24 months, an additional stop payment fee will be charged. Some consumer accounts will discount the stop payment fee.