My Cashier's Check Was Stolen! What Now?

For most situations in life, you can pay for a purchase with cash, a debit or credit card, a payments app, or a personal check. However, if you're covering closing costs and a down payment on a home purchase or making another very large outlay of money, you might not be allowed to pay with a card, app, or check written by you on your checking account. And you likely don't want to withdraw a bunch of cash. In this instance, you might turn to a cashier's check instead.

What's a cashier's check, anyway?

Unlike the payment options mentioned above, a cashier's check isn't free. At the big national bank I have some accounts with, for example, a cashier's check will cost me $15. But in addition to making it easier to pay for large expenses, a cashier's check will also clear a lot faster than a personal check, because it's written on your bank's funds, rather than your own. This means the bank is guaranteeing the check (note: you must actually have that money in your own account for the bank to draw on to replace its funds).

How do you get one?

To get a cashier's check, you'll need to go to your bank (or initiate the check online). You'll need your identification and account information, as well as the amount for the check and the recipient's name. Once you pay the fee, your bank will create the check (if you're doing this online, it'll be mailed to you) and you'll be issued a receipt. Now you've got your means to pay a big expense and can go on your way. But what if something goes wrong?

What happens if you lose your cashier's check?

If you lose the cashier's check or it's stolen before you can give it to the intended payee, your first move should be to get in touch with the bank that issued it. You'll need to report the loss and request a stop payment on the check. That way, if someone finds it, they won't be able to cash it. You may have to make a declaration of loss statement, which is you affirming the check is gone and you will not find it.

You might be required to purchase an indemnity bond to get a replacement cashier's check. This is an insurance policy that ensures you'll reimburse the bank for its losses if the original check is found and cashed along with the replacement. It might be hard to get an indemnity bond, and you might need the help of an insurance broker.

Unfortunately, even after jumping through all these hoops, it could still be 30 to 90 days before your bank agrees to issue you a replacement cashier's check. And in the meantime, you'll be out the money for the original check (since your money was transferred to your bank to replace the money it shelled out on the check originally), as well as the fee you paid to get it (this won't be refunded to you). It's not an ideal situation, so keep a tight hold on that cashier's check until you can deliver it to its intended recipient.

If you need a cashier's check to make a big purchase, it's best to treat it like cash: Easy to lose, and potentially extremely difficult to replace.