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

Short Answer

In South Carolina, the first step is to identify how the sender paid (paper check, cashier’s check, ACH/direct deposit, or wire) and then request a trace or proof of payment that matches that method. If it was a cashier’s check (or similar bank-issued check), South Carolina law provides a specific “declaration of loss” process that can force a reissue after a waiting period. If the payment relates to a probate estate, the personal representative generally has the duty to gather and recover estate property and may need to make formal written demands and, if necessary, involve the probate court.

Understanding the Problem

In South Carolina probate matters, a common problem is: can a personal representative or beneficiary take action when a military-related payer says a payment was issued, but the receiving bank shows no deposit and no incoming transfer? The decision point is usually whether the payment was actually sent in a way that can be traced (for example, a check number or a transfer trace number) and whether the payment was made to the correct payee name and destination account. The next steps depend on the payment method and whether the funds were intended for an individual or for an estate being administered.

Apply the Law

South Carolina law treats missing payments differently depending on whether the payment was made by check (including bank-issued checks like cashier’s checks) or by electronic transfer. For probate-related funds, the personal representative is the person with authority (and responsibility) to take reasonable steps to locate, protect, and recover estate property, including pursuing missing payments that should have been paid to the estate.

Key Requirements

Confirm the payment method and identifiers: A “paid” status is not enough. The sender should provide details that allow tracing (check number and date; ACH trace number; wire IMAD/OMAD; payee name; last four digits of the destination account).
Match the payee and destination exactly: If the payment was issued to the wrong payee name (for example, an individual instead of an estate) or to the wrong account/routing number, the bank may have no record of it even if the sender “issued” it.
Use the right legal process for the instrument: If the missing payment was a cashier’s check/teller’s check/certified check, South Carolina provides a statutory “lost check” claim process that uses a declaration of loss and includes a 90-day waiting period before the claim becomes enforceable.

What the Statutes Say

S.C. Code Ann. § 62-3-709 (Duty of personal representative; possession of estate) – The personal representative must take control of estate property and take reasonable steps to manage, protect, and recover it.
S.C. Code Ann. § 36-3-312 (Lost, destroyed, or stolen cashier’s/teller’s/certified check) – Allows a claimant to demand payment from the issuing/obligated bank using a declaration of loss; the claim generally becomes enforceable after 90 days from the check date (for cashier’s and teller’s checks).
S.C. Code Ann. § 36-4-403 (Stop payment; timing and duration) – Describes stop-payment orders and timing rules (often relevant when a sender needs to stop and reissue a check).

Analysis

Apply the Rule to the Facts: The facts describe a military-related payer stating that a payment was issued, while the bank reports that no funds arrived. Under the key requirements above, the practical and legal leverage comes from obtaining traceable proof of the payment method (for example, a check number or transfer trace number) and confirming the payee name and destination account information. If the payment was made to an estate, the personal representative generally should be the one making the formal requests and follow-up because South Carolina law places the duty to collect and recover estate property on that role.

Process & Timing

Who starts the trace: Usually the sender/payer initiates the trace. Where: through the payer’s payment office and, if needed, the payer’s bank (for checks/wires). What: a written request for (a) proof of issuance, (b) proof of negotiation (if a check), or (c) ACH/wire trace details. When: as soon as the missing payment is discovered, because some payment systems and bank record searches become harder over time.
Bank-side confirmation: The receiving bank should check for pending items, returned deposits, rejected ACH entries, name mismatches, and holds. If the payer provides an ACH trace number or wire reference, the bank can often search incoming transfer logs using that identifier.
If it was a cashier’s check or similar bank-issued check: The claimant can pursue the declaration-of-loss route with the obligated bank. Under South Carolina’s UCC, the claim generally becomes enforceable at the later of the time it is asserted or the 90th day after the date of the check (for cashier’s and teller’s checks). Once enforceable (and if the check has not been paid), the obligated bank may be required to pay the claimant under the statute’s process.

Exceptions & Pitfalls

“Issued” is not “received”: A payer may show a payment as issued even if it was returned, rejected, sent to an old account, or never negotiated. The fix often requires a trace and reissue rather than arguing with the receiving bank.
Wrong payee name or estate authority issues: If the funds should have been payable to an estate, a payer may require letters of appointment and the exact estate payee format before reissuing.
Mixing up check types: The statutory declaration-of-loss process in S.C. Code Ann. § 36-3-312 applies to cashier’s checks, teller’s checks, and certified checks—not ordinary personal or business checks. For ordinary checks, the sender typically handles stop payment and reissue through their own bank.
Informal calls without documentation: Missing-payment disputes resolve faster when requests are in writing and include identifiers (dates, amounts, payee name, last four digits of the account, and any trace/reference numbers).

For more probate-focused background on locating and recovering estate property, see: How to Recover or Trace Missing Estate Assets in South Carolina.

Conclusion

In South Carolina, the practical solution to a “sender says paid, bank says not received” dispute is to confirm the payment method and obtain traceable proof (check details or transfer trace numbers), then use the method-specific process to trace, reject, stop, or reissue the payment. If the missing funds belong to a probate estate, the personal representative generally must take reasonable steps to recover that property. If the payment was a cashier’s or teller’s check, a declaration-of-loss claim may apply, and the key waiting period is often 90 days from the check date; the next step is to submit the claim to the obligated bank.

Talk to a Probate Attorney

If a payment tied to an estate was supposedly issued but never arrived, a probate attorney can help document the claim, confirm who has authority to demand reissue, and choose the fastest path to trace or recover the funds while staying aligned with probate court requirements and timelines.

Disclaimer: This article provides general information about South 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 South Carolina attorney.