Stop That Payment!

Recorded on April 27, 2016   |   With Mary Beth Guard

Stop That Payment!

With Mary Beth Guard
  • 1 Video
  • 3 PDFs
  • 2.0 hrs
Course description

ICB Credit: 2.5 CRCM

Not so long ago, stopping payment was an easy thing. The payment was either a check or an ACH item, and all you had to do was make sure you selected the right form for the customer to complete. Now, check conversions and image presentments have thrown confusion into the mix, making the handling of stop payment more complex.

Dramatic increases in the use of ACH transactions by consumers have made it more important than ever that bankers understand the relationship between Regulation E's stop payment provisions and ACH rules. It's also important that bank employees understand the relationship between revocations of preauthorized EFTs and stop payments.

Bankers must understand the differences between the use of their systems' stop payment functionality and the actual right to stop payment. Not all payments can be stopped, and it's important that bankers know which items will almost always get them into trouble if the bank refuses payment. Failure to understand this concept can lead to lawsuits, increased legal costs, and significant losses.

In this webinar, Mary Beth will cover:

  • All of the most common payment methods
  • The difference between oral and written stop payments
  • What happens after a stop payment has expired
  • The extent of the bank's exposure if it misses a valid stop order
  • How stop payment orders can be lifted or revoked
  • Who has the authority to issue a stop payment order
  • How ACH stop payment rules work
  • When a "missed" ACH stop payment may still be returned, and how
  • How to deal with claims an official check has been lost, stolen or destroyed
  • When to refuse a request to stop payment on an official check
  • Whether you can refuse to accept a stop payment if you think it's only to avoid an overdraft
  • Why a depositor may have to pay, even after payment has been stopped
  • The importance of making stop payments work on both paper and ACH items
  • When a stop payment order arrives too late

Participants in the webinar will better understand how to respond when their customer says, "Stop that payment!"

Course Curriculum

Video
120:23
Stop That Payment!
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Materials
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Instructor

Mary Beth Guard
Mary Beth Guard

Mary Beth Guard is a seasoned banking attorney who is one of the four co-founders of BankersOnline.com  and its original Executive Editor.  She is now Editor Emeritus of the site.   She was instrumental in the creation and expansion of BankersOnline, as well as the launch more than a decade ago of BOL Conferences, Inc. and its continued operation and growth.  Mary Beth also serves as CEO of Glia Group, Inc., which produces BOL Learning Connect training for the banking industry. For nearly four decades, Mary Beth has utilized her background as an attorney to focus on banking industry issues, first as general counsel for the Oklahoma State Banking Department, then as general counsel for the Oklahoma Bankers Association, prior to her work with BankersOnline.

Mary Beth has presented training programs for virtually every major national financial industry association, more than a dozen state bankers associations and a host of other organizations, including various graduate schools of banking. She is a frequent presenter of webinars and seminars. In addition, Mary Beth has written more than a thousand banking-related articles and is BOL Guru #1.