Thanks to automated payments and online banking, many of us rarely (if ever) write checks, but millions of Americans still pull out their checkbooks every day to pay their bills. Because they might not always have enough money in their accounts on the day they write those checks, some folks will postdate their checks so that they aren’t deposited or cashed until after that date. Unfortunately, the fact is that there’s generally no actual obligation to honor the date on a check.
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.
Consumerist reader M. recently learned this the hard way when her bank processed a postdated check several weeks before she’d intended.
M. had sent the check to a car dealership to cover the remaining $1,500 payout resulting from turning in a leased vehicle ahead of schedule.
“Since we were still short a few hundred dollars, why not cover most of the payout, and send a postdated check for the rest later on,” she tells Consumerist. “[The dealer] would deposit the postdated check as stated, right?”
Wrong. 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.
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A check is a promise of money on demand. The date on the check is the earliest date that the money can be demanded. It's like a little contract between payer and payee.
ReplyDeleteNot with electronic processing.
ReplyDeleteIf she pointed out to the car dealership that it was a future date, then it's the car dealership's fault for depositing it too soon. It would serve them right if that bounced check messed up their account, too.
ReplyDeleteIsn't it against the law in Maryland to accept a postdated check more than 5 days in advance??
ReplyDeleteOnce a check is signed, it can be presented for cash or deposit. Honoring a post dated check is a courtesy, not the law. If you recieve a post dated check, chances are it won't be good until that date anyways.
ReplyDeleteHopkins automotive did this to our family. Said we can post date a check. We traded in out vehicle,post dated a check and was repossessed in a week and a half. Post date was for two weeks. They really screwed us. Please if you go there beware. I would just stay away.
ReplyDeleteMaybe people shouldn't buy cars until they actually have the money in the bank to pay for them.
ReplyDeleteMost of the banks here on the shore don't even look at the date, they cash it, and collect overdraft fees!
ReplyDelete