AboutJim Meadows Expertise I can respond to most questions concerning consumer and business relationships with US financial institutions. My expertise touches on deposit and loan issues and particularly on strategies to navigate through bank policies personell and practices. I have a degree in Economics, attended law school, Graduate Shool of Banking, and Commercial Lending and Compliance Schools.
Experience I have twenty years experience as a bank CEO. Most of those years were spent operating a bank focused primarly on serving consumer/retail needs. I helped pioneer deposit and loan products for low/moderate income individuals. I currently serve on multiple bank boards and am Chairman of a Commercial Bank in Atlanta.
Question Dear Jim,
I would really appreciate your help on this perplexing and urgent problem.
I am a US Citizen currently residing in Pakistan and teaching in a university here. Previously I had taught at University of Pennsylvania, where I owned a house. I recently sold the house, and the funds from the sale were deposited at Citizens Bank in Philadelphia. I called them up to ask them to wire transfer these funds to an account in Citibank, New York, from where it would be credited to my account in Pakistan. The manager informed that they do wire transfers ONLY if I come in in person. If I sent them a letter they would send a cashiers check to Citibank.
Consequently, I sent them a letter via DHL asking them to send a cashiers check to Citibank. This check somehow seems to have disappeared. It has been three weeks and it has not been cashed, nor has it appeared in the account to which it was mailed to.
The bank manager of Citizens, Mr. Bob Lucia, has sent me a stop payment on this check and has requested me to sign the stop payment order, so that he can issue a new check.
My problem is that the stop payment order requires me to sign on a statement which accepts ALL legal responsibility for the consequences of the stop payment, and indemnify the bank for ... (all potential liabilities) whether groundless or otherwise. ...
It seems to me that the current problem, of the mail not reaching is wholly or partly the responsibility of the bank, especially since they refuse to do wire transfers which are more secure in this respect. If I sign a stop payment, then it seems that I accept all responsibility for any future problems that may arise. I dont know what to do.
yours sincerely
Asad Zaman
Answer Dear Asad, Sorry for the confusion. I read your second message without realizing that there was a first. As to your problem: The bank's position is that the cashiers check was issued at your instruction. Further,the bank's position is that they are not obligated to reissue the check, and if they do so, it will only be on their terms. Accepting your personal indemnity in exchange for the new check signals that the bank has little concern that the first check will present a problem for them, given the payee. (In similar circumstances banks will ask for a bond or cash indemnity) But the bank does want some assurance that you won't attempt to benefit from both checks, should the first turn up. I personally think your risk is very limited. If it were me, I would sign the indemnnity agreement in order to receive my funds. After all, what alternative did they give you? My guess is none. I think it's reasonable to do what they ask in this circumstance. Hope I've been helpful. Jim
