Is post dating checks illegal
He called the bank the other day and stated that he mailed a post dated check to someone and if we allowed that item to clear his account before the date on the check, we would be liable for the funds coming out of his account.He stated that he just learned in a class of his that if he gave the bank notice of this check, we were accountable if we allowed the item to clear his account before the date on the check.I am not sure, but I think many banks charge for this service. If the law student has no intention of ever honoring the check, or if it is written against non-sufficient funds and no attempt is ever made to make it good, then it could be construed to be illegal.If he paid a bill with that check, he may also have breached an agreement he has with a creditor.Unless he has given your bank notice of the postdating describing the check with reasonable certainty, your bank may charge his account for the check.If he gave notice, reasonably describing the check, but you paid it prior to the date on the check, your bank would only be liable for damages, if any, caused by paying the check prior to its date.The UCC does not regulate fees that banks charge customers for a notice of postdating or other services covered by the Act.
I was recently witness to a salesman claiming that a customer could post-date a check to guarantee their check would not be cashed before the item they just ordered was received.
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.
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.