Does a post-dated check have any *valid* use for delaying payment?
Although it might not seem right for a bank or credit union to disregard the date written on a check, they aren’t legally required to honor the request to postpone processing a transaction unless certain conditions are met by the check issuer.
Are post-dated checks valid?
Post-dated checks are perfectly legal. If they weren’t, “pay day” lenders, and other crude forms of credit, couldn’t exist. Only “properly payable” checks are supposed to be cashed by banks. But just about anything with the right signature on it is properly payable, including post-dated and overdrawn checks.
Can you stop payment on a post-dated check?
Once the check has been cashed by the recipient, you won’t be able to make a stop payment with the bank. In order to stop payment on a check, you should take the following steps: Contact the bank as soon as possible; notify them orally that you wish to stop payment on the check.
What happens when you post date a check?
Postdating a check is done by writing a check for a future date instead of the actual date the check was written. This is typically done with the intention that the check recipient will not cash or deposit the check until the future indicated date.
How long is a post-dated check valid?
As previously mentioned, personal checks are usually valid for up to six months after the date they were issued,1 but you shouldn’t count on the bank to pay attention to the dates. A money order issuer may charge fees on the order if enough time passes.
Does date matter on checks?
Unfortunately, the fact is that there’s generally no actual obligation to honor the date on a check.
What happens if a post-dated check bounces?
As per Section 138 under the Negotiable Instruments Act, 1881, Supreme Court’s cheque bounce case judgement, by the bill of exchange, means that the document will stay negotiable and will turn into cheque only on the date it will be payable on demand.
Why might you want to use a postdated check?
A post dated check is a check on which the issuer has stated a date later than the current date. It is used when the issuer wants to delay payment to the recipient, while the recipient may accept it simply because the check represents a firm date on which it will be able to deposit the check.
How do you stop payment on a check?
You can issue a stop-payment on a check any time before it has been processed by following these steps:
- Call your bank.
- Give them the details of your check: check number, amount, payee, and date.
- Follow up in writing.
- Pay a fee1.
What happens when you put a stop payment on a check?
Generally, banks honor a stop payment request for a check drawn on your account. If you stop payment properly and the bank cashes the check, the bank may be liable for the cashed check. you fail to provide sufficient notice to implement the stop payment order.
What means postdated?
Definition of postdate
transitive verb. 1a : to date with a date later than that of execution postdate a check. b : to assign (an event) to a date subsequent to that of actual occurrence. 2 : to follow in time.
Can a post-dated check be cashed after the date?
Although postdated payments cannot be cashed until the date specified, financial institutions may do so prior to that date.
What happens if you deposit a post-dated cheque early?
A teller might not question a post-dated check that is being deposited early. “We’ll treat it like any other check to see if it raises any flags. If it is post-dated, we’ll still accept it,” she said.