What is postdating check

24 Sep

" Sorry, Charlie, but you'd be on the hook for those fees. Secondly, "mailing" a payment on a bill is a "convenience".

You’ve probably heard of — or tried to use — the post-dated check strategy.

There is a down side to accepting post dated checks...

If a creditor accepts a post-dated check in exchange for merchandise or services, in many jurisdictions the seller is considered to have extended credit to the issuer of that check.

However, in some circumstances if you give the bank reasonable notice, they will be prevented from cashing it until the date on the check.

In order to prevent your check from being paid until the date you wrote on the check, you must give the bank reasonable notice of the postdating by describing the check with reasonable certainty before the bank receives the check.

I have done so, but my confusion is that she said that post dating a check is illegal.

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If you choose to accept a postdated check, you run the risk that the person who wrote the check could close their account before you deposit the check, or that their account will not have sufficient funds when you deposit the check. a check delivered now with a written date in the future, so that it cannot be cashed until that date.The danger to the recipient is that such a check is legally only a promissory note due at the later date, and if the account is closed or short when the check is presented at the bank, the payee has no rights to demand payment by the bank or claim that the delivery of a bad check was criminal.One of the myths that somehow refuses to go away is the myth that post-dated checks are "illegal." They are not.There is nothing illegal, inappropriate, unlawful, unethical, unprofessional, or unconscionable about a creditor asking a customer to issue a post dated check, nor is there any reason a customer cannot issue one or a series of post dated checks to clear a past due balance.As a result, the transaction is not considered as issuance of a "bad check" since the creditor released the merchandise or performed the service in reliance of the check writer's promise to pay at some later date rather than in reliance of the check's negotiability.Therefore, the protections offered to creditors under the various "bad check" laws may not apply.Unfortunately, you may have a difficult time demanding payment by the bank, or claiming that the writing of the bad check was done with the intent of committing fraud, since most states refuse to recognize postdated checks as check fraud.If you wrote a postdated check and your bank cashed it after you gave reasonable notice of the postdating, a skilled attorney experienced in banking laws and regulations can advise you of your rights and remedies.Technically speaking, because I mail my check in, isn't this post dating it? State: Georgia I got a call from my landlord today complaining that my rent check was post dated, and that I needed to send a new one ASAP.Technically speaking, because I mail my check in, isn't this post dating it? My response: First of all, postdating a check is not "illegal." However, if you read the Uniform Commercial Code, a bank will take a check regardless of the date.