What can I do if the sender says they paid me but my bank says the money never arrived? – North Carolina

Short Answer

In North Carolina, the practical first step is to force the issue into a traceable paper trail: get the sender’s proof of payment (check image or ACH/wire trace details) and open a written investigation with the bank using that information. If the payment was a check, the sender can usually request a stop-payment and reissue after confirming whether it was cashed; if it was direct deposit, the sender can request a trace and reversal/return process if it went to the wrong account. If the money was intended for an estate or came from a government source, it is also important to stop any ongoing direct deposits and document all communications promptly.

Understanding the Problem

Under North Carolina probate practice, the issue is what can be done when a payer claims a payment was issued to a recipient, but the recipient’s bank shows no deposit or credit. The decision point is whether the payment can be verified and traced through objective records (for example, a check image or an electronic payment trace) so the correct party can reissue, reverse, or correct the transaction. Timing matters because banks and payers often have internal deadlines for tracing, returning, or replacing payments, and delays can make the investigation harder.

Apply the Law

North Carolina law and common banking practice generally treat “payment” as something that must be provable through records. In probate settings, good administration also requires a complete inventory of cash and undeposited checks, prompt deposit of checks into the proper estate account, and prompt action to stop or redirect any ongoing direct deposits that should not continue. When a payment is missing, the goal is to (1) identify the payment method, (2) obtain the payer’s transaction proof, and (3) use that proof to trigger the bank’s research process and the payer’s trace/reissue process.

Key Requirements

• Proof of issuance: Documentation showing what was sent (for example, check number and date, a copy of the check, or an ACH/wire trace with routing/account details and an effective date).
• Proof of receipt (or non-receipt): Bank records showing whether the funds posted, were returned, were rejected, or were deposited to a different account.
• Prompt, documented follow-up: Written requests and a clear timeline (who was contacted, when, what was requested, and what was received) so the bank and payer cannot close the issue as “unverifiable.”

What the Statutes Say

• N.C. Gen. Stat. § 116B-58 (Record of issuance of check or draft) – Treats a record showing a check/draft was issued as prima facie evidence of an obligation in the unclaimed property context, which underscores why issuance records matter when funds are missing.
• N.C. Gen. Stat. § 6-21.3 (Remedies for returned check) – Provides a civil remedy framework for certain dishonored checks after written demand; it is not a “missing deposit” statute, but it highlights that written notice and bank dishonor documentation can become important if the dispute turns into collection litigation.

Analysis

Apply the Rule to the Facts: The facts describe a payment from a military-related source that the sender says was issued, but the bank says never arrived. That makes “proof of issuance” the first element: the sender should provide the transaction details (check image or electronic trace). Next is “proof of receipt or non-receipt”: the bank should confirm in writing whether the funds ever posted, were rejected/returned, or were credited elsewhere. Finally, “prompt, documented follow-up” matters because government-related payers and banks often require specific information to open a trace and may close research requests that lack a trace number, check number, or effective date.

Process & Timing

1. Who starts the trace: Usually the sender/payer (because the sender’s bank or issuing agency controls the trace). Where: Through the sender’s payment office or payment portal and the recipient’s financial institution’s dispute/research department in North Carolina. What: Request (a) a check image (front/back) if a paper check was issued, or (b) an ACH/wire trace with the routing number, account number (masked if needed), effective date, and trace/reference number if it was electronic. When: As soon as the missing payment is discovered, because internal trace windows can be short and vary by institution.
2. Bank research: Provide the bank with the sender’s proof and request a written response stating whether the bank ever received the item (for example, whether an ACH entry was received and returned, or whether a check was presented). If the bank indicates the funds were returned, request the return reason code or written explanation so the sender can correct and reissue.
3. Reissue/correction: If the proof shows the payment was never completed to the correct account, the sender typically reissues (new check) or corrects the direct deposit instructions and sends again. If the proof shows the payment was negotiated by someone else (for example, a check cashed with a questionable endorsement), the next step is a fraud/forgery claim process with the bank and payer, and potentially a law enforcement report depending on what the records show.

Exceptions & Pitfalls

• Mixing up payment types: A missing paper check is handled differently than a missing ACH/direct deposit. The sender’s proof should identify which one it was before anyone can fix it.
• Assuming “issued” means “received”: A payer may show “issued” even if the payment was returned, rejected, mailed to an old address, or deposited to an incorrect account number.
• Probate administration traps: When the payment relates to a decedent or estate, good practice is to inventory undeposited checks, deposit checks into the correct estate account, and discontinue any direct deposits that should not continue. If a government payment was sent after death or to the wrong place, the agency may require return/reissue steps and documentation.
• Unclaimed property confusion: If the payer or bank later treats the funds as unclaimed, the claim process may require proof of entitlement and proof the obligation was not actually satisfied. Keeping issuance records and bank responses helps support that claim.

Conclusion

In North Carolina, the practical solution to a “sender says paid, bank says never received” problem is to convert the dispute into documents: obtain the sender’s proof of payment (check image or electronic trace), then use it to open a written investigation with the bank and a trace/reissue request with the sender. In probate-related situations, the next step is to document the missing payment in the estate records and promptly stop or redirect any ongoing direct deposits that should not continue.

Talk to a Probate Attorney

If you’re dealing with a missing payment tied to a military-related source or estate administration and the sender and bank are blaming each other, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.