The explanation that we have received from management for this recent change is that accepting post-dated checks increases liability to credit union. When I raised this point with a supervisor, they said all banks and credit unions have policies about not accepting post-dated checks. You should also check your state’s laws and your bank or credit union’s policy before writing a postdated check. Ask the cashier, or better yet a manager, if writing a postdated check would be an acceptable form of payment. Do not be surprised if they do not allow it even if it is in line with state laws. Under Georgia law, proof of any of the above-listed conditions will satisfy the intent element of the crime that is necessary for a conviction.

• An individual borrows a small amount (usually $100 to $1,500) at a very high rate of interest.
• Be sure to check with your bank about specific account disclosures for more information.
• Overall, it is a powerful financial instrument if used wisely and strategically.
• A cheque is a bill of exchange drawn on a specified banker and to be payable on demand.

The following question was submitted to John Roska, an attorney/writer whose declining balance method of assets depreciation pros & cons weekly newspaper column, “The Law Q&A,” ran in the Champaign News Gazette.

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That would include any bank fees and damages caused by an improperly overdrawn account. Therefore, although it’s not generally a good idea to write post-dated checks, the careful writer of post-dated checks will notify his bank as soon as possible about his post-dated check. Don’t be surprised if the bank charges a fee for having to be extra careful.

Thanks to automated payments and online banking, many of us rarely (if ever) write checks, but millions of Americans still pull out their checkbooks every day to pay their bills. Because they might not always have enough money in their accounts on the day they write those checks, some folks will postdate their checks so that they aren’t deposited or cashed until after that date. Unfortunately, the fact is that there’s generally no actual obligation to honor the date on a check. Recently learned this the hard way when her bank processed a postdated check several weeks before she’d intended. Had sent the check to a car dealership to cover the remaining $1,500 payout resulting from turning in a leased vehicle ahead of schedule. “Since we were still short a few hundred dollars, why not cover most of the payout, and send a postdated check for the rest later on,” she tells Consumerist.

Luckily for them, Foster waits to cash postdated checks, but he isn’t legally obligated. Businesses may reject a postdated check as a form of payment — and this is well within their legal right. You should clear it with your bank and your payee before writing a postdated check. If an account overdraft happens, there are usually a few fees that are levied, such as insufficient funds or an overdraft fee (and sometimes both). The check writer is waiting for money to be deposited or for another check to clear before the payee will be able to cash the check without overdrawing the writer’s account.

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This is to indicate that the check should not be cashed until that specified future date. Though the laws of each state vary, a person generally isn’t guilty of such a crime unless they knew they wouldn’t have the funds, and intended to defraud the party they wrote the check to. Someone intends to defraud if they never intended to actually pay the other party, but wrote the check anyway.

Now we know the definition of cheque, let’s understand post-dated cheque. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program. Now, if you’re the one writing a post-dated check, just know that it means nothing to post-date a check.

In some states, if a consumer gives the financial institution reasonably timed written notice about a postdated check before the check is received, then the notice is valid for up to six months. That means the bank must wait to cash the payment until the date stated on the paper or until six months is up, whichever comes first. But if the consumer gives oral notice to the bank, the institution must only wait 14 days before processing the note – even if that happens to be before the date on the check. Additionally, the only time a bank can be held liable for processing a postdated check before the indicated date is if that notice is still valid. In which case, the CFPB says the institution may may be on the hook to cover damages such as the cost of overdrafts and other fees.

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Issuing a post-dated cheque also involves a process of informing the bank with the written instructions which are cumbersome. To add to it, each bank has different policies monitoring and preventing premature payment. Today, most of the banking process has been automated and banks rarely look at the date mentioned on the cheque. In the above example, if you are a recipient of the cheque, you can deposit the cheque on 3rd Feb or after that though the cheque was physically written and received to you on 27th Jan. For instance, someone with a car loan can schedule postdated payments to be transferred electronically from their account to the lender.

While we know why businesses issue a post-dated cheque, it is also important to know the possible situations under which the post-dated cheque is issued. To define post-dated cheque, it is a form of a cheque drawn with a future date written on it. To simply put, post-dated cheque is one which is drawn with a date which is after the date on which cheque was written.

Identity theft occurs when someone obtains personal or financial information of another person in order to assume that person’s identity to make transactions or purchases. Postdating a check refers to writing a check but putting a future date on the check instead of the date that the person writes the check. People typically postdate checks intending that the recipient not deposit or cash the check until a later date, because payment is not due until that later date.

What Is a Postdated Check?

While our articles may include or feature select companies, vendors, and products, our approach to compiling such is equitable and unbiased. The content that we create is free and independently-sourced, devoid of any paid-for promotion. There are no guarantees that the recipient will do the right thing by depositing the check on or after the date shown.

There are multiple reasons why you may need to write a postdated check and the reasons can vary greatly depending on your personal situation. Below are some common reasons why individuals choose to write postdated checks. In banking parlance, the term “post-dated cheque” refers to a cheque written by the payer (drawer) for a future date. In simpler terms, a cheque is written with a future date beyond the date on which it was written. In this case, the drawer should always maintain enough funds in the account so that the cheque doesn’t get dishonored/bounced on the specific date mentioned in the cheque.

What Is A Post Dated Check

As you can see, there doesn’t appear to be any major enforcement of a post-dated check, so it can just be treated as a regular check for the most part. So, yes, you can deposit a post-dated check before the date shown, but it isn’t advised. A teller might not question a post-dated check that is being deposited early. We can’t give legal advice in the comments, so if you have a question or need legal help, please go to Get Legal Help.

In other words, a post dated check is a check that is validly written but can only be cashed as of the future date that you have indicated on the check. If you have an option to exercise, then it is best to avoid writing a postdated cheque. Even if your payee (the recipient) is honest, they may make the honest mistake of forgetting and leaving you with bad cheque fee. A payday borrower typically writes the lender a postdated personal check for the amount of the loan plus a fee. The lender cashes the borrower’s check on the agreed-upon date, usually on the borrower’s next payday.

Rules for Post Dated Cheque

One noteworthy topic had to do with post-dated checks and what happens to them when you attempt to deposit or cash the checks before the date written on them. If you want a basic checking account with no monthly maintenance fee, or an interest-earning checking account, we’ve got the options that are right for you. If you are concerned about overdrafting — and you’d rather not deal with a returned check and your landlord’s ire — consider switching to a bank with a solid overdraft policies.

Postdated checks are not illegal, but writing a check you lack the funds to pay is. In other words, if you have the intent of defrauding someone by intentionally writing a check, knowing you will not have the funds on the postdate, it’s illegal. If you are writing a postdated check, or you have received a postdated check, it is critical to fully understand how they work and the different considerations to take into account prior to doing anything.

It is also illegal to pretend to pay someone without actually intending to do so. However, those payment dates change if the first or third day of the month falls on a weekend or a holiday. For instance, July 1 fell on a Saturday this year, so SSI recipients received their July payments a day early, on June 30, and their Social Security payments should have arrived on July 3.