Stop That Payment!

With John Burnett

Stop That Payment!

With John Burnett
  • 2.0 hrs
Course description

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 payments more complex.

The use of ACH transactions by consumers has 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 also 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, John 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
  • Stop payments and overdrafts
  • 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

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Instructor

John Burnett
John Burnett

John Burnett is a 1979 alumnus of the ABA National Compliance School, and served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA's Stonier Graduate School of Banking, and is also a graduate of the BAIs and the Massachusetts Banker Associations Schools of Banking.

John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He joined Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, as well as Clerk of the bank's holding company.

John joined Glia Group, Inc. and the BankersOnline.com team in June, 2004. He is a frequent presenter of BOL Learning Connect webinars, and at BOL Conferences events.

He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and a former member of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA's Truth in Savings Task Force as Regulation DD was being written, and has served on several ABA and Massachusetts Bankers seminar panels.