If the person who wrote the check has provided reasonable notice of postdating to their bank, however, you will not be able to cash the check early.
Businesses should speak to their bank for more information. Details of this are either in the front cover of your chequebook or in the terms and conditions of your account. When you postdate a check, you put a future date on it.
Different banks have different policies, but the majority of banks discourage the practice of post-dating cheques.
Stephen wanted to pay for a training course and gave two cheques, one dated immediately and one post-dated, for payment later.
Stuart Cliffe of the National Association of Bank Customers said they do get a steady trickle of complaints for this popularly held misconception.
The habit of post-dating cheques goes back to when the only means of payment was by cheque or cash; i. Not date-sensitive According to William Hedley in Bills of Exchange and Bankers, "the document is an ordinary bill of exchange payable at a future time and therefore can be endorsed or negotiated in the usual way.
You can use online banking, a standing order, or arrange a date of payment with your telephone bank service. So the safest practice is not to write post-dated cheques at all and set up a series of standing order payments, provided the recipient is set up to accept automated payments to their account.
There are no specific rules on how banks deal with these post-dated cheques if they are paid in before the due date. Therefore if it is post-dated, it is not payable on demand, so is not technically a cheque.
Why Would You Postdate a Check?
What about businesses, surely they rely on post-dated cheques to keep control of their finances? Post-dated cheques are common and enforceable.
The two major issues before the courts are: In general, banks do not charge cheque writers for returning a cheque unpaid because it is post-dated. If a Canadian financial institution inadvertently accepts and processes a cheque before the due date, the cheque writer may ask his or her financial institution to return the amount until the day before the cheque should have been cashed.
Some banks advise customers at the front of their chequebooks not to write post-dated cheques while many state in bank account terms and conditions that post-dated cheques should not be written However, as this is a competitive matter the banks themselves decide how best to communicate with their customers.
If you find it necessary to write a postdated check, and you provide your bank with reasonable notice not to cash your postdated check, then the bank may not legally cash it.
What if this created an overdraft and I had to pay expensive fees? Well, the bank may then be liable to you for damages, like overdraft fees, for instance.Cheques - What you need to know. A cheque is an agreement between two individuals or organizations to make a payment.
Posted on: June 20, You can avoid these fees by ensuring there is enough money in your account to cover the cheques that you write.
Post-dated Cheques Cashed Early.
pre-authorized payments for bills or e-mail money. Bouncing of Post Dated Cheques. credibility and acceptability of negotiable instruments like cheques in daily life. So, in such cases, the right approach is not to allow the creditor to write an amount in the cheque on his own otherwise there is a high risk of harassment of debtor.
A "post- dated cheque" is only a bill of exchange when it is written or drawn, it becomes a "cheque" when it is payable on demand. The post-dated cheque is not payable till the date which is shown on the face of the said document.
In the United Kingdom, post-dating a cheque carries no legal weight and so such a cheque can be cashed before. Some banks advise customers at the front of their chequebooks not to write post-dated cheques while many state in bank account terms and conditions that post-dated cheques should not be written However, as this is a competitive matter the banks themselves decide how.
Jun 17, · Best Answer: APACS say "Banks set their own policies on post-dated cheques and, in many cases, their account terms and conditions state that customers should not write them.
If the recipient of a post-dated cheque attempts to pay it into their account prior to the date shown, it may either be returned unpaid, possibly incurring charges for both parties, or it may be cleared, creating problems Status: Resolved.
You can write a cheque to any business or person as a way to transfer money from your bank account to them.
Below are some basic tips to help you write a cheque and a breakdown of the cheque form to help you write your cheques. Government, Insurance, Money Orders, Payroll, Personal, Post-dated, Small Business, U.S. Dollar and more! Call.Download