Can I Get My Money Back From a Cashier’s Check?
Navigate the steps and requirements for getting your money back from a cashier's check. Understand bank procedures for fund recovery.
A cashier’s check is a secure form of payment issued by a bank or credit union, drawn from the institution’s own funds rather than a customer’s personal account. The bank guarantees the availability of funds, making it a reliable option for significant transactions like real estate deposits or vehicle purchases. Unlike a personal check, the risk of a cashier’s check bouncing is eliminated because the funds are secured upfront. This inherent security also influences the process for recovering funds if the check is no longer needed or goes missing.
Cancelling an Unused Cashier’s Check
If you possess a cashier’s check that was purchased but not used, obtaining a refund is generally a straightforward process. The bank will require documentation to verify the check’s legitimacy and your ownership. This includes the original cashier’s check, the purchase receipt, and a valid form of personal identification.
Visit a branch of the issuing bank and inform a customer service representative that you wish to cancel the check and have the funds returned to your account. Some banks may ask you to endorse the check or write “not used for intended purpose” on it before processing the refund. The refund is usually processed immediately or within a short timeframe once the bank confirms the check’s validity and that it has not been cashed.
This cancellation process applies to checks still in your physical possession that have not been endorsed by the payee or presented for payment. The funds will typically be redeposited into the account from which they were originally debited. While the refund of the check’s face value is common, any initial fees paid to purchase it may not be reimbursed.
Addressing a Lost or Stolen Cashier’s Check
When a cashier’s check is lost, stolen, or destroyed, recovering funds becomes more involved due to its guaranteed nature. Contact the issuing bank as soon as you realize the check is missing. Prompt notification allows the bank to flag the check and initiate an investigation.
You will need to provide the bank with details about the check to help them identify it. This includes the date of purchase, the exact amount, the name of the payee, and the check number if you have it. Having your purchase receipt or other transaction records available will assist the bank. If the check was stolen, filing a police report may be advised or required, and a copy might need to be provided to the bank.
The bank will usually require you to complete and sign a formal document, often called a “Declaration of Loss” or “Affidavit of Lost, Stolen, or Destroyed Cashier’s Check.” This document is a sworn statement affirming the circumstances of the loss, confirming that you no longer possess the check, and agreeing not to cash it if it is found later. Signing this affidavit under penalty of perjury is a serious commitment.
Indemnity Bonds and Waiting Periods
After reporting a lost or stolen cashier’s check and filing the affidavit, banks typically impose additional requirements before issuing a refund or replacement. A common requirement is purchasing an indemnity bond. This bond acts as a financial guarantee, protecting the bank from potential loss if the original check is later found and fraudulently cashed. Since cashier’s checks are guaranteed funds, banks are obligated to honor them, and the bond mitigates their risk of paying out twice.
These bonds are typically obtained from a surety company, costing a small percentage, often between 1% to 5%, of the check’s face value. The bond ensures that if the original check surfaces and is cashed, you, as the purchaser, are ultimately liable for repaying the bank or the surety company. While an indemnity bond can expedite the process, it does not always eliminate waiting periods.
Banks generally impose mandatory waiting periods before issuing a replacement or refund for a lost or stolen cashier’s check, even with an indemnity bond. This waiting period, commonly 90 days, allows sufficient time for the original check to potentially surface or be presented for payment. This delay reduces the risk of the bank inadvertently paying out twice, protecting them from financial exposure. After this period expires and the bank confirms the original check has not been cashed, a replacement or refund can be issued.