We have several CDs with a bank not in our city and the only way to get one's monthly interest is to have it mailed to us. I noticed one of the interest checks did not arrive this month with others in seperate envelopes. I called the bank and first was told it had had enough time to arrive so they would do a "stop payment" on it and reissue another check. However I just got a call from another agent who mainly handles CDs and was told their policy is that they have to mail me an Indemnity Bond which I have to get notorized and return to them before they can reissue another check.
I told her this seems ridiculous for such a small amount of the check and if I had to do that, I was not doing further business with their bank when the CDs matured. She said their President is the only one who can waive my doing the Indemity Bond but she will contact him and see if he will waive it.
I have never had a bank or credit union in over 50 years of having checks mailed to us, do anything but put a Stop Payment on the missing check and reissuing another. Has anyone else been told they need the Bond to get a missing check replaced? I am wondering if all banks are getting stricter with their policies now for some reason. I never thought to ask them about this when getting a CD before. Thanks for any info you can share.