I put a stop payment on a check and the bank let it go through???

Question

I mailed off a payment, and 3 weeks later they had not recieved it...so I stopped payment on the check and did an over the phone payment. On Monday, the check cleared my bank, over drawing my account! After 3 days of back and forth with the bank they credited the $410.00 back into my account, my question is...Is that money "out of the bank's pocket" or how will they get the money back from the company I wrote the check to if it already cleared or will they?

Answer 1

The money is paid by bank as it is liable for not following the customer's instructions. Also they dont have much scope of recovering it from other party as it is not possible to track the party. Next time try to send A/c payee cheques to avoid such cases

Answer 2

Is it possible that it was already in the process of clearing when you put a stop payment?

Looks like the bank messed it up, talk to the customer support at the bank and explain your situation, the bank errors are corrected in your favor.

Answer 3

The bank is insured against this kind of thing happening. It sounds like someone at the bank just wasn't paying attention when your check came through and let it go on through.

Answer 4

Instead of spending three days arguing with the bank you should have talked to the person you overpaid.
They probably will get it back from the company you overpaid.
Most businesses are honest about things like that.
They may have already recovered it during the three days you were trying to resolve it.

Answer 5

Don't worry about the bank! ...they have the ability to pull the money back from the creditor...and they certainly will.
GCBTrading<---- chuckling to think the bank would "pay for it's mistake"