What is “stopping a check”? What is this practice for?

Check payments are quite common in Brazil, so it's important to understand all the possible operations that can be performed with this payment document. One of them is stopping a check.

Many people don't know what a stop check is and what it's for. So, read our article so you can get all the information you need if you need to do this or if you receive a stop check.

What is a stop check?

Stopping a check is a procedure used to cancel the clearing of a check that has already been issued. This process may be necessary for a variety of reasons, such as if the check was stolen or lost, if there was a mistake in filling it out, or if a commercial dispute occurred.

When a check is stopped, the issuer notifies the bank immediately, requesting that the amount specified on the check be stopped from clearing. The bank, in turn, may withhold payment of the check or return the amount to the issuer, depending on the specific circumstances of each case.

To stop a check, the issuer must provide a valid reason. In the case of theft or robbery, for example, a police report must be filed with the financial institution. If there is a commercial dispute, documentation proving the disagreement between the parties involved must be presented.

It's important to emphasize that stopping a check is not a measure that should be taken without careful consideration, as it can have serious consequences. For example, if the check was issued to pay a debt, stopping it could result in legal action from the creditor. Therefore, it's important to carefully evaluate your options and seek legal advice if necessary.

When and why should you stop a check?

Many people wonder what the purpose of stopping a check is. There are several applications for stopping a check, and it's also important to know what to do if you receive a stopped check.

If you issued a check, you can stop it in the following situations:

• Theft or robbery of the check in question;
• Loss/misplacement of check;
• Commercial disagreement;
• Other reasons given by the check issuer.

Therefore, with this possibility, it is necessary to be careful when receiving and issuing your checks, since, in the event of a suspension, it will not be paid.

The option to stop a check provides security for both the issuer and the recipient when making and receiving payment. If the check is lost, for example, the check will not be cashed, and another can be issued in its place.

How to stop a check?

To stop a check, the issuer must follow a few steps. The process may vary slightly depending on the financial institution, but in general, the following steps should be followed:

• Contact the check-issuing bank as soon as possible. It's important to explain the reason for the stoppage and provide all necessary information, such as the check number, issue date, amount, and payee's name.
• In some cases, the bank may request the issuer to submit a formal document, such as a police report, if the check has been stolen or robbed. It's important to follow the bank's instructions to ensure the check stop is processed correctly.
• The bank will take the necessary measures to prevent the check from clearing. Depending on the circumstances, this may include stopping payment, returning the check, or other actions.
• The check issuer should be aware that a stop payment may have legal and financial implications, and that the beneficiary may seek legal action if they deem the action unjustified. Therefore, it is important to carefully evaluate the options and seek legal advice if necessary.

Remember that stopping a check should be an exceptional action, taken only in situations of extreme necessity. Before taking this action, it's important to consider all available options and carefully evaluate the potential consequences.

I received a stopped check, what should I do?

If you receive a voided check and deposit it, the check will bounce. In this situation, you need to determine the reason for the void so you can resolve the issue:

• Reason 28: check stopped in case of theft, robbery or loss.
• Reason 70: check stopped or provisionally revoked.
• Reason 35: check with tampering or irregularity.

These are generally the reasons the bank gives for non-payment of the document. So, by understanding the problem with the check, you can find a solution.

In the event of lost, stolen or robbed checks, you should preferably file a police report and present it to the issuer, requesting that the check be stopped and another check be issued.

If you receive a stopped check, you should first contact the issuer to find out what the problem is. You may then receive a new check to clear the payment. Depending on the reason, the issue can be resolved through a direct conversation between the parties involved.

If the check issuer does not respond or the issue cannot be resolved, contact the check-issuing bank to verify the validity of the stop payment and understand next steps.

Check to see if there are other payment methods available. For example, if the check was issued to pay a debt, see if the issuer can pay it another way.

If there's no other option, legal action may be possible. In this case, it's important to hire a lawyer and gather relevant evidence, such as the original check, copies of emails or text messages, and any other documents related to the issue.

Remember that receiving a stopped check can be inconvenient and, in some cases, can result in financial loss. Therefore, it's important to act quickly and take the necessary measures to minimize the damage.

What is the difference between a bounced check and a bad check?

Although a stopped check and a bad check are both terms related to check problems, they have different meanings.

A stopped check is one whose clearing was canceled by the check issuer before it could be cleared. This can occur for a variety of reasons, such as an error in issuing the check, loss or theft of the check, commercial disagreement, and others. When a check is stopped, it cannot be cleared and the amount is not paid to the beneficiary.

A bounced check is one that is presented for clearance but is not paid by the issuing bank because there is not enough money in the issuer's account to cover the check amount. This can happen for a variety of reasons, such as a lack of funds in the account, a blocked account, or overdraft use exceeding the permitted limit. When a check returns due to insufficient funds, it is considered a bounced check, and the beneficiary does not receive the amount.

Frequently asked questions

[faq]