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Old 12-03-2008, 08:36 PM   #1 (permalink)
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Post Dated checks were paid by my bank

On two separate occasions my bank paid checks that were post-dated. The bank then charged me insufficient funds fees as the balance was insufficient at the times the checks were attempted to be paid. This started windfall of fees from the bank for outstanding debit card purchases. Debit card purchases were paid, but additional fees were applied to the account for each debit card transaction.

I called the bank for an explanation as to why they would post or attempt to post a post-dated check to my account. Their representative explained that the checks were process electronically using automated equipment and basically I was out of luck. I asked the representative what the need was for the date on checks to begin with, considering the bank pays no attention to them.

This same bank will NOT accept a post dated check on deposit into the checking account. I know this because they refused to deposit my payroll check that was post dated.

It seems the bank doesn't play fair to me. They will post or try to post a post dated check that debits my account, but will not accept a post dated check on deposit to credit my account.

Is this legal?
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Old 12-04-2008, 02:03 AM   #2 (permalink)
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I think this is illegal. And Illegal just because of Post Dated Check as it shows itself that it is out of date and now it has no value. You can claim on bank for this activity.
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Old 12-04-2008, 03:57 AM   #3 (permalink)
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If post dated checks were illegal, in the strictest sense of the word, every bottom feeding check cashing place would be out of business. Checks are not a line of credit, which is what happens, in essence, when one is written. A bill is due, you write a check with no funds behind it---you are asking the creditor to, in a nutshell, extend you credit for the amount of the check for a designated period of time. This isn't the purpose of checks.

The problem with post dated checks is that 1. a business can accept them, 2. they are under no obligation to actually hold them 3. the bank processes hundreds of thousands of checks daily--it is not possible to verify the date on each and every check, in particular when it is done electronically and 4. the consumer has little or no recourse against the bank or the creditor who, in turn, accepted and/or cashed the check.

Posted dated checks can fall into even more of a shady area in different states, depending in your location, which you did not provide, so I am unable to be more specific.

And for ROZI. BUSH ( cannot believe Im addressing a spammer), but in the interest of clarity against misinformation, POST dated means IN THE FUTURE, not the past. Therefore, the check is not 'outdated'. "Out of date"? virtually every check I cash is "out of date" as you have used it in this context--- ( i.e. PAST the day of issue).

Poster, what you are describing is frustrating---and it is an expensive lesson learned. If you had any legal recourse ( which I am not certain that you do) it would be against the agency/person who cashed the check, not the bank. However, it would be impossible to prove (unless you had it in writing )because the creditor could just say that you wrote a different date on the check without their knowledge, or insist they didn't notice it, regardless of any verbal agreement. Unless this happened with a check cashing place that agreed in writing to hold your check for a certain period of time, I am afraid you are out of luck.

Sorry. Wish I could tell you otherwise. Many banks will, if your account is in good standing, and if it doesn't happen often, refund you a portion of those charges if you talk with the manager of the bank where you opened the account (not a branch of the same).

Good luck.
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Old 12-04-2008, 01:22 PM   #4 (permalink)
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Writing a check with no funds in the bank to cover the check is a form of fraud. The bank can take you to court for not covering the checks you write, and if you continue, they will probably close your account rather than risk having to take you to court.

As for those payday places, they probably have a contract with the lendee so that they promise not to attempt to cash the check until a certain date. Based on their having a contract to allow taking such a check from you, it is NOT illegal... it is only ill-advised.
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Old 01-02-2009, 11:31 AM   #5 (permalink)
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Post Dated Checks

There is nothing illegal with writing a check with a date other than the that day's date.

A Bank may cash any check presented to it as long as it is valid. Except for the date. They may legally cash a post dated check before the date on the check. But, they are not obligated to accept or cash a post dated check. Rank this due to the banks not wanting to handle each check and so they use machines that can't find the date. See UCC 4-401

Writing a post dated check with out sufficient funds is not fraud. No bank may take you to court for a post dated check. BUT, if you write a check to person "A" and on the date "A" tries to cash the check and the bank refuses for Non Sufficient Funds, then "A" may sue you for the amount on the check plus any other damages they suffer. The bank will usually charge you a service fee for the NSF.

When "A" cashes your check early is the problem between you and "A". If necessary, tell "A" what they have done then ask them to make reparations. If they refuse, then try small claims court to recover your overdraft charges.

good luck
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Old 01-02-2009, 11:44 AM   #6 (permalink)
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If no one is compelled by law to hold a post dated check, then there is no legal recourse in small claims against them for not holding it.

Unless it is a check cashing service where it is agreed upon as the purpose of the business (cash advances) to hold the check, if no one is required to hold a check, and if a bank is able to cash a post dated check before the date specified, holding either of them liable for NOT doing so is not probable.
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Old 01-02-2009, 12:02 PM   #7 (permalink)
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Grace,

No one is compelled to hold a post dated check. They can refuse it and return it if they don't want it. They don't even have to accept checks at all, some places (hot dog carts) still only accept cash. Some other places will not accept checks OR cash but debit or credit cards only.

The issue becomes when the recipient tries to cash the check early. All a post dated check does is promise that the person may deposit the check and receive funds on a certain day. If the check recipient does not agree to the amount, the date written on the check, or any other notation attached, they have the option of returning the check. They don't have the option of changing the amount, or date, or notation. Changing any of those items is fraud as could be presenting a check before it is ripe.
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Old 01-02-2009, 01:56 PM   #8 (permalink)
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Quote:
Originally Posted by Mr. Fusion View Post
Grace,

No one is compelled to hold a post dated check. They can refuse it and return it if they don't want it. They don't even have to accept checks at all, some places (hot dog carts) still only accept cash. Some other places will not accept checks OR cash but debit or credit cards only.

The issue becomes when the recipient tries to cash the check early. All a post dated check does is promise that the person may deposit the check and receive funds on a certain day. If the check recipient does not agree to the amount, the date written on the check, or any other notation attached, they have the option of returning the check. They don't have the option of changing the amount, or date, or notation. Changing any of those items is fraud as could be presenting a check before it is ripe.

Please notice my posting of 12-4 wherein I wrote "2. [COLOR=red]they are under no obligation to actually hold them ".[/COLOR] I am not sure why what I most recently wrote prompted this reply from you.

My statement in my immediately previously written post says IF (meaning since, or because)--"If no one is compelled by law to hold a post dated check, then there is no legal recourse in small claims against them for not holding it. " Reverse the sentence---it restates what I said in the 12-4 posting. There is no legal recourse in small claims against them for not holding it, if (SINCE) there is no law compelling them to hold the check".

Since I previously stated that they do not have to hold the check ( see posting of 12-4) I didn't feel it necessary to repeat that point. My subsequent point was to disagree with your posting stating that they could go to small claims to recoup if the person did not hold the check.

IF the person did not hold the check, they cannot win a case in small claims SINCE they ARE NOT REQUIRED to hold it.
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Old 01-03-2009, 07:44 AM   #9 (permalink)
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Banks are allowed by law to cash/deposit/handle ANY check regardless of date. The problem here is that there is no way to encode the date on the check when the bank encodes a check for processing. It only has room for the bank route and transit number, the account number, a check number and the amount.

The exception is that if they provide this service, they must provide "best effort" to avoid checks they have been warned not to cash prior to the date on the check... thus your payroll check is probably an example of a situation where they have an agreement with the bank not to cash their payroll checks early.

But given the potential for people to date checks wrongly, there is also no reason to assume that the date has any relevance unless the bank has been warned by the issuer not to cash it.

You might thus be able to ask your bank NOT to cash YOUR checks to third parties... given that your employer has the same agreement with them.

Just don't assume that the bank has any way to process the check mechanically and follow those instructions... so you could still have one cashed even though you asked them not to.

So post dating your payments is not a good way to control your payments and your bank account. If I were you, I would look into a "bill pay" service from a credit card company or bank. They assist you in determining holidays and minimum time required to set up a payment. BANK OF AMERICA, for example, will pay so that it gets there by the date you specify when you enter the "pay transaction". Sometimes that is a day or so before, but the bank also will process automated deposits in the same fashion based on holidays. But be careful to try out the payments before you go completely automated. Some banks DON'T have a good program to avoid setting payments on holidays. Thus they don't pay until AFTER the bank holiday has past.... because other banks, government and utility companies are not open or online to accept the transaction.
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Old 06-04-2009, 09:14 AM   #10 (permalink)
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Postdated Checks

This article may be of some assistance: Postdated Checks Lawyers
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