What does post dating a check do
In M.’s case, it appears it was indeed “at the bank’s discretion” to process the payment when it was received.Still, she tells Consumerist that the bank in question agreed to remove the overcharge fees incurred as a result of the situation.Instead, consumers could seek alternative measures such as a small-dollar loans from a credit union or community bank, inquire about a pay advance from their employer or work out a payment plan with the company or individual they are paying.In addition to understanding the risks and potential issues with providing a postdated check as payment, consumers should be cognizant that it is illegal to intentionally write a bad check.[...] If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act.The loss may include damages for dishonor of subsequent items under Section 4-402. You're writing a future date on the check, not past, to ensure that the check will not be deposited before that day.In 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.
Unfortunately, the fact is that there’s generally no actual obligation to honor the date on a check.“[The dealer] would deposit the postdated check as stated, right? And because the bank processed the check before the date she’d written, M.’s account was overdrawn and she was hit with fees by her bank. to provide a postdated check, it also wasn’t illegal for the dealership to deposit the check or for the bank to take out the funds needed to cover that check, regardless of the date.That’s because once a check is signed it becomes legal tender, and, according to the Consumer Financial Protection Bureau, banks and credit unions can generally use their own discretion when deciding when to process a check – all without regard to the check’s printed date.I was under the impression that this is false, and that writing post-dated checks can actually be considered illegal under some of the worthless-check laws here in the United States.But it was suggested that, perhaps, having such a check would make it illegal for the business to In the United States, post-dating a check, on its own, has no valid use.