Is post dating checks allowed

Posted by / 11-Mar-2016 05:01

Problems crop up when the person holding the check jumps the gun and takes it to his bank anyway.Banks aren't obligated to wait until the date on the check to cash it.Accepting a postdated check from a tenant may seem like a surefire way to get the money that you are owed, but this does not always lead to payment and sometimes may even lead to further complications.Unless you are 100 percent sure that the tenant can be trusted and that there will be funds to cover the check when it is ready to be cashed, it may not be a good idea to accept a postdated check.The Uniform Commercial Code states that a bank may honor a postdated check provided the check is otherwise safe to cash and the account owner has not provided the bank with "reasonable notice of the postdating.This means that a tenant may legally postdate a check to you and that you may even be able to cash it when you receive it, but if the bank has been notified of the postdating you will have to wait until the date listed on the check instrument before you may receive the funds.

They should watch for the check to arrive and only cash it if the date you've indicated has passed.

Occasionally, I like to skim through Reddit’s personal finance section for any interesting money topics.

One recent, noteworthy topic had to do with post-dated checks and what happens to them when you attempt to deposit or cash the checks before the date written on them. If I were to post-date a check, it would probably be because I don’t yet have enough funds in my account to cover the check amount.

If you wanted to avoid it, you should stress it to the person that receives the check, or just give the check to them when you actually have the money in your account.” Upon further investigation, I found a clause in the Wells Fargo consumer account agreement (page 23) that states: So, Wells Fargo may actually try to process the check, regardless of the date that is written on the check.

Essentially, I don’t see any point in post-dating a check — it is valid from the moment that I sign it.

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