WEST VIRGINIA CONSUMER CREDIT AND PROTECTION ACT. (2) Represent in any manner that postdating a check will prevent its payment from the. By postdating and informing the recipient that they shouldn't cash the It's a good idea to check your state law before you postdate a check.
What are Postdated Checks? Share Postdated checks are written to be drawn from the checking account only after a certain date. In other words, postdated checks only become "functional" after the date mentioned on the checks. This means that the initial holder of postdated checks cannot use them until the date on the checks has come.
This is not necessarily true, however, as there are some banks that will actually accept postdated checks and will deposit funds into the check holder's account in exchange for the postdated checks, even before the date of the check's date has come. The primary distinction of postdated checks in this instance, then, is that a postdated check cannot be drawn from the checking account of the drawer on a date prior the date listed on the check.
This means that if the drawers of postdated checks know that they will be receiving deposits on a certain date, then they can ensure that the deposits will be in their checking accounts prior to the drawing of the postdated checks. In this way, the drawer of a postdated check will be able to avoid any overdraft fees from the postdated check being drawn on a checking account without enough money in it to support payment of the check.
Postdated checks are perfectly legal, as long as they are not being used for illegal purposes. For instance, a postdated check cannot be used with the intent to prevent any money from being drawn from a checking account by receiving whatever goods the drawer buys from the payee with the postdated check and then canceling the check before it can be drawn by the payee. In general, however, postdated checks are perfectly acceptable in most instances. As mentioned earlier, banks will still accept postdated checks regardless of whether or not the date has come.
This is because postdated checks are essentially just negotiable instruments with a clause attached, where that clause does not affect the negotiability of the instrument. They can be deposited into any given checking account, then, because even if funds are not paid immediately, they will eventually be made available, just like an ordinary check.
In some instances, postdated checks will be treated as payable, regardless of their postdated status. In such instances, one's checking account might be overdrawn, as the check might be paid before the drawer was ready to have it paid. As such, it makes sense for a drawer to alert his or her banking institution as to the postdated checks in question to at least have greater assurance that his or her checking account will not be overdrawn.
For payees given postdated checks, the acceptance of such checks should only be done after considering the problems and risks that might come along with postdated checks. Even simplistically, one might lose a postdated check while waiting for the date to come.
Postdated checks also might be used in some kind of scam or fraud, especially when they are dated for a long time away from the current date. To be safe, one should not accept postdated checks dated too far in advance, and one should only accept them from a party that is going to still have its checking account open and with the available funds inside on the date of the check.
Try again later 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.
Consumerist reader M. The only way to possibly prevent a postdated check from being processed early is to let everyone involved know in advance — and in a format that goes beyond just postdating the check. In some states, if a consumer gives the financial institution reasonably timed written 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.
But if the consumer gives oral notice to the bank, the institution must only wait 14 days before processing the note — even if that happens to be before the date on the check. Additionally, the only time a bank can be held liable for processing a postdated check before the indicated date is if that notice is still valid.
In which case, the CFPB says the institution may may be on the hook to cover damages such as the cost of overdrafts and other fees. Pamela Banks, senior policy counsel for our colleges at Consumers Union, tells Consumerist that sending a postdated check can be an indicator to the recipient that the check-writer is in dire financial straits.
She says that many people who end up falling into predatory lending traps like payday loans have also used postdated checks to try to stave off debt collectors. A post-dated check is an order to pay the bearer at a definite time in the future. But, there is an exception to this rule: UCC c. It was not clear from your question whether you promptly notified your bank of the post-dated check, but it seems that you did not because you do not mention it.
This means you likely cannot take advantage of the protections afforded by Section However, the bank did not honor the check, so at least you are spared overdrafts resulting from the check being cashed. In the future, be sure to immediately notify your bank of any post-dated checks. No Fraud Because No Misrepresentation Fraud of any type requires a misrepresentation that the victim relied upon.
You did not misrepresent anything, because you truthfully told the tech support contractor that funds were not immediately available but would be on the date that you post-dated the check. He did not rely on any misrepresentation, but rather disregarded a truthful representation.
As a result, you have not engaged in fraud. That is, he may be trying to squeeze more money out of you through a threat of criminal prosecution. See a Lawyer Anytime criminal prosecution is threatened, it is wise to consult with an attorney, whether to ease your concerns about your own actions or to determine if the person threatening is engaging in extortion.
And, seeing an attorney early may aid you in clearing up this matter before it blows up into something more complicated and expensive. Talk to a Lawyer Start here to find criminal defense lawyers near you. Practice Area.