Stop Payment Letter To Bank: A stop payment is an order by a customer of a financial department. A money order issuer can also cancel the payment drawn on the customer’s account. Usually stop payments are for those account holders who do not want the cheque to be paid for various reasons and issues which include insufficient funds to cover the amount, lost or stolen cheque or disputes between two parties.
Financial companies or organisations charge a certain fee for processing stop payments, and the amount is the same as charged for a bounced cheque. While issuing a stop payment request to an institution, the account holder has to provide the bank details such as cheque number, amount, payee and date when the cheque was drawn. An account holder can also call the bank to issue a stop payment and for further convenience, one has to write an application form. Therefore, by stop payment does not recover the debts of the account holder which he owes to the payee.
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- Reasons for Stop Payment On Cheque
- Stop Payment Of Cheque Through Online Services
- Stop Payment Through Helpline Numbers
- Stop Payment Of Cheque Through Visiting Bank (Offline Process)
- Steps To Write The Format of Stop Payment Letter
- Request Letter to Bank To Stop Payment
- Application for Stop Payment Cheque
- FAQ’s on Stop Payment Letter To Bank
Reasons for Stop Payment On Cheque
They are as follows;
- If any buyer finds the product damaged or defective or if the product remains different from what he or she purchased.
- If the cheque gets stolen or misplaced then one can opt to stop payment of the cheque.
- Insufficient funds are one of the common reasons to opt to stop payment of the cheque.
- A written mistake is done by the cheque bearer.
Stop Payment Of Cheque Through Online Services
Almost every bank provides online services to the customers to contact and raise their complaints as well as requests. There are some points mentioned below;
- The account holder must have an internet connection and internet bank services system should be installed and activated with his or her account.
- One has to log into the bank’s portal and select the preferred options to carry out the request.
- Most banks have their personal applications which can be installed and one can also perform through the bank’s official websites.
Stop Payment Through Helpline Numbers
All banks provide helpline numbers for customer services;
- The account holder can make a call and register a request to stop the payment of the cheque.
- The bank’s customer executive guides the caller to perform the process.
- The executive will also ask the caller to provide personal details like account number, branch, name and date of birth, etc.
Stop Payment Of Cheque Through Visiting Bank (Offline Process)
The account holder can visit the branch office of the bank and can submit a written request or an application to the assigned person to stop the payment of the cheque. Let’s go through the points given below as those things are very important to be mentioned in the letter;
- Issuing date of the cheque
- Bearer’s name
- Account holder’s information or details
- Cheque number
- Amount mention or entered to be debited through cheque.
Steps To Write The Format of Stop Payment Letter
They are as follows;
- From the left-hand side of the letter, mention the date at the top most corner.
- Leave some space and then write to whom to address the letter for example; The Bank Manager, also write the name and branch office of the bank with its proper address (Should be within three lines).
- Again leave a space and write the subject matter of the concerned issue.
- After addressing respected Sir/Madam, leave a line and start the opening lines by giving an introduction about the account holder and providing needful bank details which have to be mentioned while writing.
- After mentioning the request, one can show thankfulness for cooperating with the issue.
- Lastly, the signature and the name of the account holder are required.
Request Letter to Bank To Stop Payment
Date: …………..
To,
The Bank Manager
Name of the bank XYZ
Name of the branch XYZ
Full address of the branch XYZ
From,
Name of issuer/account holder XYZ
Address of communication XYZ
Subject: Notice to stop payment cheque(s) (bearing cheque number XXXXX)
Dear Sir/Madam,
I am here to request you to stop payment of the cheque bearing number-………., dated-………, in favour of (name of cheque holder)………., for the total (amount) of…….. on its submission due to…… (cheque stop payment reason). It is also requested that we are informed upon receipt and dishonour of the cheque when presented, at the earliest.
Please kindly look into the matter.
Thanking You,
Regards
Name of the account holder
(Signature of account holder)
Application for Stop Payment Cheque
Date: …………..
To,
The Bank Manager
Name of the bank XYZ
Name of the branch XYZ
Full address of the branch XYZ
From,
Name of issuer/account holder XYZ
Address of communication XYZ
Subject: Stop Payment of Cheque No: XXXXX
Respected Sir/Madam,
I urge you to kindly stop the payment of cheque No. —————- dated dd/mm/yyyy for Rs. ———–(Rupees ———————– Only) issued by me in favour of Mr. —————–(name of client/employee). The above-referred cheque has been misplaced by them/him.
So kindly stop the payment with immediate effect. It will be great if you look into this matter.
Thanking You,
Yours Faithfully
Full name of the account holder
(Signature)
FAQ’s on Stop Payment Letter To Bank
Question 1.
How to stop a payment request?
Answer:
An account holder can issue a report to stop payment of the cheque through various modes like calling with the help of customer care services provided by the bank, installing apps of the respective banks through which requests can be executed through online mode, requesting through offline mode where account holder needs to visit the branch office of the bank with a formal application.
Question 2.
How can I write a letter to the bank manager to stop the payment cheque?
Answer:
I sincerely request you to stop the cheque (Cheque No XXXXXX) mentioned in the second paragraph and please stop the payment, if and when it is presented to your bank. Please reassure me that you have taken necessary action in this regard, please acknowledge the receipt of this letter and treat it as soon as possible.
Question 3.
What is a stop payment letter?
Answer:
It is a request letter from a bank account holder to restrict the payment cheque and stop the transaction which is issued by him or her.
Question 4.
Can a stopped cheque get bounced?
Answer:
According to a Supreme Court version even “if the cheque is bounced because of the stop payment, if the bank account has sufficient balance to meet the cheque amount, and if the person who gives a stop payment has valid and sufficient reasons for giving such instructions, the accused can be acquitted.”