Start Postdating check illegal

Postdating check illegal

Some states, including California and Georgia, place responsibility on check writers to ensure their checks are not cashed or deposited too quickly.

To defraud someone in such a way for goods and services is illegal in all states.

You postdate a check by writing a future date on it.

People typically do this when they want to give a check to someone but aren't certain they'll have enough money in their account until a certain date to cover it.

There are several advantages to taking postdated checks in settlement of an account balance including these: 1.

The fact that you are holding a check that will be presented to the bank for payment on a specific date places a burden on the debtor to have funds on deposit when the check is presented. In the event that the check is dishonored and the customer is sued, the existence of the check makes it harder for the customer to argue that the debt was never owed. Even if a post dated check is not honored when it is first presented, there is always the possibility that the check will clear at its second presentment, or that the creditor can tender the check to the debtor's bank on a collection basis.

BUT, many state laws are based on the Uniform Commercial Code which has a provision that states that a bank can process a check even if the written date on it has not yet come due (meaning, just because you post-dated it doesn’t mean it’s illegal for it to be processed early).

The “post-date” is not illegal, but also isn’t worth much as far as ensuring the check processing date either.

One of the myths that somehow refuses to go away is the myth that post-dated checks are "illegal." They are not.