A person writing a postdated check may violate the law if the check is returned by the bank to the recipient because the maker's account does not have the funds on deposit necessary to cover the check. No fraud allowed: There's no law making postdated checks illegal. In most cases, the recipient can deposit the check at any time.
If you do, make sure the person you give it to can be trusted - and understands exactly when to cash the check. If you need a few extra days for funds to clear in your account, ask your payee for an alternate payment date. If you write a date on Dec. If your bank is charging you a fee for transfers, it's bank policy, not Reg D.
Under the rules of the, a post-dated cheque cannot be cashed prior to the date written on it. We are experiencing some problems, please try again. We had the excat same question just some months ago and the answer was that the date makes no difference.
Another loop hole is that the reg does not specify how many times a customer can exceed the withdrawal limits before the bank must close or convert the account.As said years ago when the thread started, the surest method of the check not clearing early is calling your bank and telling them not to accept it.
I owe 2nd year driver responsibility and they told me I to send the payment in 10 days before it was due. I pre-date checks all the time and the bank won't cash them until the said date, but that is in TX. I think you're good at either the teller or an ATM, but not in pre-authorized, telephonic, or computer transactions; see. I thought to post-date something was to write the date as 15 Dec.
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Doesn't your bank have some sorta policy on this? Don't know if it is legal or not, but then again. Find that thread and you'll see all the cites. For the purpose of determining whether a post-dated instrument is a cheque, the fact that the instrument is post-dated shall be disregarded. Here's your relevant info, from UCC Sec. HighSoci I've never heard of "pre-dating" a check.
I always post date my checks because the way I am paid conflicts with my rent dates. I am not asking to be able to deposit a postdated check, and then have the bank hold it until the date arrives. I can go online if I want, and tell my bank I want to pay a certain bill on a certain date. I can't withdraw from my savings more than six times a month? I don't know of any that charge you to move the money between your accounts yourself.
So, yeah, post-dating is legal and, in fact, possible for customers to enforce if they call the bank and give notice of the postdating. Some billers are happy to arrange a payment date that works well with your income (they’ll make your due date a few days after your). Sorry for not being clear. Starting from $39 - Local, qualified attorneys offer fixed-fee legal services.
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On the bright side, in my years as Reg D enforcer, the regulators never looked at how we applied the reg, only for evidence that we did apply the reg consistently. Or to a third party by means of a preauthorized or automatic transfer. Oral instructions might be valid for 14 days, and you may be able to extend your bank’s monitoring time for up to six months with written instructions. Other banks may have a different policy.
BTW, Money Market accounts are classified as savings and do fall under Reg D.
Similarly, what if I try to put as much as possible into the savings account, but also use it as overdraft protection? Since Balthisar hasn't posted here since mid-December, you are probably not going to get a response. So I said can I send it and date it with the date the money will be in the account?
If a dishonored check is dated with anything other than the date the check was guaranteed, the guarantee is void and the merchant has bad checks for lunch. If the check in question overdrew the account, or was rejected for nonsufficient funds, I further explain that it is against federal law to write a check for an amount greater than the available funds in the account at the time the check is written. If the check is dated for later, then enforce the late fee!
- "Ridicule is the only weapon that can be used against unintelligible propositions.
- ' In the, post-dating a cheque carries no legal weight and so such a cheque can be cashed before the due date.
- A check is valid on or after the date it is posted.
- A cheque is not invalid by reason only that- (a) it is not dated; (b) it is antedated or post-dated; or (c) the date it bears is a Sunday.
- A little Reg D background may help.
- According to another site such checks are civil and not crimial affairs in Virginia.
- Also, the actions that you describe (IANA Lawyer) seemingly would be done with the intent of defrauding the person to whom you wrote the check.
To me, it seems that the Uniform Commercial Code requires the bank to honor the post-dating if the customer has given notice to the bank. Transfers (overdraft protection related or otherwise) between your own accounts within the same bank are not considered withdrawals under Reg D. Under the former law, if a payor bank paid a postdated check before its stated date, it could not charge the customer's account because the check was not “properly payable.
- As for the prior notification, well, it just doesn't happen.
- If your payment is rejected, you might be unable to buy a product or service that you wanted, you might have to pay late-payment fees, or there might be other consequences.
- What I meant was that the computer systems look at the amount in numerals, and at the amount in words, and that the computer compares the two.
- Because the bank never looks at the date.
- At least once a day, I get a call from somebody who has written a post-dated check, had the payee cash/deposit it before the written date, and is incensed that the bank would honor the item.
It will only become cheque on the date shown on it and prior to that it remains a bill of exchange under Section 5 of the Act. It's like a voucher, or a poker chip. Most banks will not honor (or even notice) the restriction of a postdated check unless the writer of the check makes an arrangement with the bank (i. Most people who post-date checks do so because they need to pay someone but don't have the money in their account "just yet.
I used to work as a bank teller. I work at a 24-hour call center for [large corporate bank]. I work at a 24-hour call center for [large corporate bank]. I would be pretty surprised if my bank wasted manpower examining every check for proper dates.
Whether a post-dated cheque may be cashed or deposited before the date written on it depends on the country. Which isn't to say that writing a check on Friday, knowing that it won't hit the bank til Monday, which is payday, isn't convenient and really handy. While this is a sound interpretation of law, for insurance reasons the bank protects itself from possible attack with the condition (2014: Section 1. Whoever told you this is misinformed.
It is not considered a crime in NY to render a postdated check unless the maker does not expect or at least have a reasonable expectation that the money to cover the check will be available in the account on the date the check is to be cashed. It usually shuts them up once the they fully comprehend the idea that they have done something illegal (and are therefore, theoretically, getting off lightly with a $30.
If you’re unwilling or unable to pay your bank to monitor your account, you’re at the mercy of whoever you give the check to. In any event, absent evidence that the postdating was not contrary to the parties' actual agreement, the penalty for honoring the check would be on the bank, not the depositor. In banking, post-dated cheque is a written by the drawer (payer) for a date in the future.
The warning is that someone who was trying to pull a scam could do as described and not be subject to prosecution for writing a bad check, because in the eyes of the law it's not a check but a promissory note. The warning is that someone who was trying to pull a scam could do as described and not be subject to prosecution for writing a bad check, because in the eyes of the law it's not a check but a promissory note. There would have been enough money in there by Sept.
In the UK the legislation is clear; 'A cheque is a drawn on a banker payable on demand'. In, the drawer may seek damages in Justice if their cheque is cashed in before its due date, according to the jurisprudential orientation of the, as per Summary No. It comes with 3 colors with or without sidebar, fixed sized or fluid.
Well then why were we bank tellers instructed never to take post-dated checks? Well, sure, but you're not trying to scam anyone, and those outstanding checks are probably not post-dated. What I meant was that the computer systems look at the amount in numerals, and at the amount in words, and that the computer compares the two.
And I see Balthisar has already covered the number one reason why people write post-dated checks.
Post-dated check - a check with a date after the date on which the check was presented is considered a post-dated check and may not be prosecuted criminally. Post-dated cheques in Indian law are considered under the. Publishers - interested in subscribing to the Straight Dope? Regardless of what the date on the check says, or what your good intentions were. Seems like kind of a shitty policy to me. Sign up for automatic electronic payments — but only if you trust the payee.
Such a check may however be used as a defense to the other checks that bounced if criminal charges are brought as to those checks. That's more than one week's pay for me. The Fed "solved" the problem with Reg. The bank where I worked did not count ATM withdrawals against Reg D limits. The date stated determines the time of payment if the instrument is payable at a fixed period after date. The loss may include damages for dishonor of subsequent items under Section 4-402.
Banks are required to hold some proportion of their customers' deposits in reserve, but the proportion depends on the type of account. Banks will not cash a check if it is received today but it is postdated for the 5th. Because there’s a possibility that the check won’t clear, you might have better luck depositing those checks. But gosh, folks, don't play with fire like this. But most banks pay little attention to the date when a customer presents a check. But you date the check for Dec.
I would be pretty surprised if my bank wasted manpower examining every check for proper dates. I'd like to add, if your bank is automated, the computer system ignores the date. I'm not making any claims about whether or not post-dating a check is illegal. Ideas must be distinct before reason can act upon them. If I post-date the check for next Monday and close the account today, you're left with a fairly worthless scrap of paper and questionable ability to get anything for it.
The maker said that there would be funds for when the check was written for, as it is now a short term promissory note. The only way to guarantee that they’ll actually work is to pay extra fees to your bank. The potential loop hole here is that while the reg specifically covers preauthorized/automatic transfers under the 3rd party payment section (".
Therefore, a post-dated check remains payable on demand, but not before the date noted on the check. They are, on one hand, savings accounts that pay interest and in theory should have more stable deposits. They processed it "on receipt" and did NOT bother with the date, since that is immaterial except for determining WHEN THE CHECK WILL EXPIRE, (6 months, in most cases. This is to help ensure that banks remain solvent even if withdrawals exceed deposits over a short period of time.
Why is it illegal to postdate checks, not for businesses, but for individuals? Wikipedia® is a registered trademark of the, a non-profit organization. You can be put in jail for writing a bad check over a certain amount by state law, but failure to pay a debt, ie promissory note, is merely a civil matter. You can only upload a photo or a video. You can only upload videos smaller than 600MB. You should have set aside the money earlier so you would have it when you needed it.
What was the law prior to UCC 4-401, and how were such checks handled back then? What's the reasoning behind this regulation? Where a cheque, or any indorsement of a cheque, is dated, the date shall, unless the contrary is proved, be presumed to be the day on which the cheque was drawn or the indorsement made, as the case may be. Where's the fraud there?
Copyright © 2017 Sun-Times Media, LLC. Debt collectors and other businesses may be prohibited from processing a check before the date on the check, but most individuals are free to take postdated checks to the bank immediately. Does that mean that if I go to the ATM seven times, I'm violating this regulation? Doesn't pre- mean before and post- mean after? Doesn't pre- mean before and post- mean after?
By agreement cheques can be post dated as in and installment contract where all documents are signed and verified together with the terms. Cashing or depositing checks: Cashing a postdated check might be a challenge. Check here if you do not want to receive additional email offers and information. Communication saves money: It’s also a good idea to communicate with whoever you give the check to.
Must have done something wrong, since I just did it and found these hits (//boards. Naturally, they will have none of this. Of course, a bank will do everything just shy of calling their customer an idiot for attempting to post-date a check and hoping the bank will actually pay attention to it amid the squizzillions of checks they process each day.
Our bank settled on 3 times in any 6 month period, but other banks may differ. Perhaps your bank's legal eagles have interpreted that to mean overdraft protection is not covered under the reg, but that seems like pretty shaky ground to me. Please email if you believe this is an error. Post dating a check isn't in itself illegal.
In other words, if the presumption is that the payor and payee agreed that the payee would hold on to the check and not deposit it until the date written on it, and then the payee deposited it anyway, why do you say that the penalty would be on the bank? In some cases, postdated checks get deposited, and nobody ever notices (they don’t look closely at the date). In some instances a post-dated cheque may be retained by the bank and paid on the due date if that date is only a few days away.
If the check is dated for later, then enforce the late fee! If the check was covered, however, I cannot reference this particular point, and must repeat the explanation in the first paragraph ad nauseum, in various incarnations, until the customer has exhausted his/her supply of four-letter expletives to direct at the bank and/or me and/or my parentage. If there's a payment problem and it goes to court, the payee is out of luck.
- "Date is for reference only.
- "If the bank doesn't pay attention to the date on the check, then why put a date on the check at all?
I don't know of any that charge you to move the money between your accounts yourself. I get paid on date x, but the bill is due on date x and if I don't have time to pay in person or the extra few dollars to pay over the phone I'd like to be able to send it on day w, x it out of money I have availabe to me and not ask y it is a problem. I know I win idiot of the year, but I did not know it was illegal to post date a check.
You should know that if anyone agrees to accept a post dated check then they have agreed NOT to submit it. You should know that if anyone agrees to accept a post dated check then they have agreed NOT to submit it.