Is post dating a check illegal
In M.’s case, it appears it was indeed “at the bank’s discretion” to process the payment when it was received.
Still, she tells Consumerist that the bank in question agreed to remove the overcharge fees incurred as a result of the situation.
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.
Consumer advocates who spoke with Consumerist say that while there are several reasons someone might think it’s a good idea to use a postdated check, it’s not generally recommended.
As a landlord, collecting a check that has been postdated could be dangerous.
The tenant may know that he or she will not have the money in time, the check could have a stop-payment placed on it, or the check may bounce.
In addition to understanding the risks and potential issues with providing a postdated check as payment, consumers should be cognizant that it is illegal to intentionally write a bad check.
In 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.
Editor's Note: This article originally appeared on Consumerist.
Our advice is that you shouldn’t post-date cheques because it is likely to be against the terms and conditions of your bank account.