Download this Free Sample Cancellation Letter of Stop Payment Order in Text or as a PDF Form to generate such a Letter whenever you want.
There are many situations in which an account holder may need to stop payment on a check, either permanently or temporarily. Typically, an account holder initiates a stop payment order via phone and then must visit the bank to finalize it. Depending on the bank’s policies, the stop payment order can last up to six months. To remove this order and allow the bank to honor the check, the account holder must formally request the cancellation of the stop payment order.
Importance, Uses, and Purposes of Cancellation of Stop Payment Order
Scenario 1: Insufficient Funds
- You issued a check a week ago and realized your account has insufficient funds to cover it. To avoid the check being dishonored and potential legal action from the check holder, you place a stop payment order. Once you confirm that your account has sufficient funds, you need to cancel the stop payment request so the check can be cashed.
Scenario 2: Lost Check
- You signed a check, but it was lost, either by your mistake or in the mail. To prevent it from being cashed fraudulently, you place a stop payment order. Once the check is found or received by the intended recipient, you need to cancel the stop payment order and inform the bank.
Most banks provide a formal request application for stopping or canceling a payment order, which can usually be found on the bank’s official website.
Cancellation Letter of Stop Payment Order {PDF Form}
Here is a preview of a Free Sample Cancellation Letter of Stop Payment Order created as a fillable PDF Form,
Here is the download link for this Cancellation Letter of the Stop Payment Order,
Key Elements to Include in the Cancellation of Stop Payment Order
- Account Holder Information:
- Name and complete address
- Bank Information:
- Bank name
- Branch name and code
- Complete address
- Account Details:
- Account number and type
- Other relevant particulars
- Check Details:
- Check number
- Date when the stop payment order was placed
- Date of the check
- Amount of the check
- Reason for Initial Stop Payment Order:
- Brief explanation of why the stop payment order was placed
- Reason for Cancellation:
- Explanation of why the stop payment order is now being canceled
- Dates:
- Date when the stop payment order was initially placed
- Date when the cancellation order is being sent to the bank
- Signature:
- Signature of the account holder
Sample Cancellation of Stop Payment Order
Here’s a sample template to help you draft a cancellation of stop payment order:
[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date][Bank’s Name]
[Branch Name]
[Branch Code]
[Bank’s Address]
[City, State, ZIP Code]Dear [Bank’s Name],
Subject: Cancellation of Stop Payment Order for Check [Check Number]
I am writing to formally request the cancellation of the stop payment order previously placed on the following check:
Account Holder Information:
- Name: [Your Name]
- Address: [Your Address]
Bank Information:
- Bank Name: [Bank’s Name]
- Branch Name: [Branch Name]
- Branch Code: [Branch Code]
- Bank Address: [Bank’s Address]
Account Details:
- Account Number: [Your Account Number]
- Account Type: [Checking/Savings]
Check Details:
- Check Number: [Check Number]
- Date of Check: [Date of Check]
- Amount of Check: [Check Amount]
Reason for Initial Stop Payment Order:
The stop payment order was placed on [Date of Stop Payment Order] due to [brief explanation, e.g., insufficient funds, lost check].Reason for Cancellation:
I now request the cancellation of the stop payment order because [reason, e.g., sufficient funds are now available, the check has been found/received].Please process this request at your earliest convenience. If you require any further information, please contact me at [Your Phone Number] or [Your Email Address].
Thank you for your assistance.
Sincerely,
[Your Name]
[Your Signature]
[Date]
By following these guidelines and using the sample template, you can create an effective and professional cancellation of stop payment order, ensuring that the bank processes your request promptly and accurately.