How to Handle a Lost Cashier’s Check?

Feb 21, 2024 By Triston Martin

Receiving payments from individuals or companies and making remuneration to them using cashier's checks is an option that is both secure and convenient. These official cheques are bought using the funds drawn from a person or company's checking account, and those funds are then transferred into an account held by the bank. When the transaction is complete, the bank will issue another cashier's check according to their name. Especially in comparison to personal cheques, cashier's checks have a lesser level of risk.

But what takes place if you buy a cashier's check or if you receive one and it turns out to be lost? When a missing cashier's check puts a hole in your financial strategies, there is no need to freak out because you have some options available.

What to Do If You Misplace Your Cashier's Check?

To handle a lost cashier’s check that you have already purchased, the first thing you should do is notify the occurrence to your financial institutes. You will be needing to fill out a proclamation of loss document, which essentially states that you confirm your check is misplaced and cannot be located anywhere. After then, the financial institution will probably request that you acquire an indemnification bond. This protects the bank from being held accountable if you misplace the check once again or on the other hand you have destroyed or stolen it.

Important Guidelines

  • Canceling a cashier's check involves a more significant number of steps than terminating a particular.
  • If you misplace a cashier's check, you will have to inform the bank, complete a proclamation of looking poor, and then wait. It might take up to ninety days to get your money back after reporting the loss.
  • When you want to cancel a cashier's check, the bank will charge you a fee of at least $30.

Alternatives You Can Opt For

You can buy a guarantee bond from an insurance firm. If you are successful in purchasing an indemnification bond, your financial institution could demand that you wait thirty to ninety days before they issue a new check for you. If you require the paycheck for anything meaningful like spending your own money, purchasing any asset holding and you don't have any other finances as an alternative, this might be an issue for you.

However, the value of a cashier's check that could be rejected may be capped at some financial institutions. What happens, though, if you misplace a cashier's check written in your name by another person? In this scenario, the OCC recommends that your first line of defense is to inquire with the individual who purchased the check regarding the possibility of buying another one. On the other hand, which may not be feasible fiscally for them, or perhaps they will be unwilling to comply with the request. Suppose they choose not to buy replacements check. In that case, you have the option of bringing an indemnification to the institution that initially issued the statement and requesting that they honor the bond.

Cancellation of a Lost Cashier's Check

Is it possible to just put a hold on the cashier's check if it has been lost? According to the OCC, technically speaking, You might or might not be permitted to attain that based on the bank that released the check. You can stop payment at most banks either over the telephone or the internet, but it's a mistake to call a local bank to discover its procedures regarding cashier's checks. Most banks enable you to request a credit freeze through the phone or online.

Be careful that even if you stop payment on a cashier's check, the bank perhaps compel you to acquire a security bond as a condition of continuing to do business with them. You should also remember that if you want to cancel the issuance on a cashier's check, you will be required to pay a charge, which could be as high as $30. In addition, the bank may take up to one hundred eighty days to credit the money back to your bank account after it has been refunded.

Can a misplaced cashier's check be reissued?

Before issuing you a replacement paper check, the financial institution will insist that you must know how to track a lost cashier's check and post an indemnity bond in the amount equal to the value of the cashier's check if you happen to lose one of them.

One form of insurance coverage is known as an indemnity bond. It guarantees that you, and not the bank, will be responsible for any damages incurred if the misplaced check is located and then submitted for payment. In that case, the bank could be accountable for paying out both statements.

Indemnity bonds are available for purchase from different insurance firms; however, acquiring one of these bonds is typically challenging. Get in touch with your insurance firm for assistance. Be mindful that even after you provide a compensation bond, a bank may want you to wait thirty to ninety days before issuing a new check. This is something you should plan for.

If you misplace a cashier's check provided to you by another individual, you can request that the original donor purchase you a replacement check. If they reject it, you might try approaching the bank with an indemnification bond.

Crux of Article

If you misplace a cashier's check, you have a few different choices in handling the situation. However, suppose you are anxious about the prospect of losing a cashier's check. Whether you are the investor or the beneficiary, the finest choice may be to search into alternative means of sending and receiving money. This is true whether you are concerned about the risk that you might end up losing a cashier's check as the recipient. Suppose you want to ensure that they are investing in a safe option.

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