A post-dated check is one which has a date after today's, so as not to be able to be cashed immediately. A defendant also will have to make restitution to the victim for goods or services received with the bad check. And in most cases, neither are banks. 1  However, It is always illegal to defraud somebody who sells you something by pretending to pay but never intending to do so. (“Postdated Checks: An Old Problem with a New Solution in the Revised U.C.C.,” 14 U. Ark. He suspects his tenants do this to keep him from cashing their rent checks before they've been paid, so their rent checks don't bounce. Punishment for committing check fraud, including fraud committed with a postdated check, can vary from state to state, but the laws typically authorize fines, probation, and even imprisonment. actually, writing a post dated check is not against the law. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. In some cases, direct evidence may exist that proves that the defendant wrote the postdated check with the intent to cheat the recipient out of goods or services. However, many banks do cash checks presented before the due date, and may not be held liable unless certain steps have been followed to prevent them from doing so. The issue of a post dated check legal changes the nature of the document, ie, rather than considered as payment is meant as a way to guarantee payment. People typically postdate checks intending that the recipient not deposit or cash the check until a later date, because payment is not due until that later date. In other words, the date that appears on the check is after the date when the check was written. 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. It's an iffy situation. The maker of the postdated check must have the intent to defraud at the time of writing the postdated check. Can You Cash a Postdated Check Before Date Shown? Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. Can I change defense lawyers after I've hired one? The rules covering post dated checks are in the Uniform Commercial Code Art. Post-dated cheques in Indian law are considered under the Negotiable Instruments Act, 1881. “From a criminal law perspective, there is nothing inherently illegal about postdating a check,” says Eric Hintz, a criminal defense attorney at Hintz & … If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. Should I just plead guilty and avoid a trial? Even with a future date appearing on the check, the check could clear (be paid from) the bank account prior to that date. The hiring of an attorney is an important decision that should not be based solely upon advertisements. Under such a circumstance it is not a criminal matter, the check becomes a promissory note. Tell the person receiving your check — your landlord, a merchant, a friend or family member — about your situation. All financial products, shopping products and services are presented without warranty. If you write a post-dated check that bounces you wrote a checked that bounced, and that's of far more prominent concern than the fact that the recipient of the check tried to cash the check "early" or that the bank processed the check "early". The amount of notice depends on your bank. the defendant did not have an account with the bank that the check was drawn on at the time the check was written, within 30 days of receiving the check, the recipient presented the check for cash or deposit but the bank did not honor the check because of insufficient funds, and the defendant failed to make good on the check within 10 days of receiving written notice that the check had bounced, or. Submitting post-dated cheques by borrowers is a customary practice for home finance and other retail products like personal, auto and consumer durable loans. This statement is based on two cases. If it doesn't go through, the recipient might charge you late fees and a bounced-check fee. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. You can land in legal trouble if you intentionally postdate a check knowing there will be no money in your account or the account will be closed by the check's date. Although worthless check laws can vary somewhat from one state to another, all states make it illegal for a person to write a worthless check with the intent to defraud a person or business of goods or services. Our list of the best high-interest savings accounts. All of these charge lower than average overdraft fees and offer free ways to avoid that fee while still paying your bills. Typical worthless check laws are written so that the criminal intent requirement necessary for a conviction is satisfied if the prosecutor proves the existence of one or more conditions or facts specified by the statute. (Ga. Code § 16-9-20; Me. Pre-qualified offers are not binding. Stat. If you write a check and don't have enough money in your account when it's cashed — whether or not it's postdated — your bank can cover the payment or let the check bounce based on its overdraft practices. “From a criminal law perspective, there is nothing inherently illegal about postdating a check,” says Eric Hintz, a criminal defense attorney at Hintz & Welsh in Sacramento, California. I postdated the check for Jan. 2, 2008. Obligation of the Bank. The scoring formulas take into account multiple data points for each financial product and service. If you write a check and don't have enough money in your account when it's cashed — whether or not it's postdated — your bank can cover the payment or let the check bounce based on its. To defraud someone in such a way for goods and services is illegal in all states. So how do we make money? Little Rock L.J. If you are concerned about overdrafting — and you'd rather not deal with a returned check and your landlord's ire — consider switching to a bank with a solid overdraft policies. It is the duty of the person drawing a postdated check to notify, in writing, the separate office or branch of the institution upon which such check is drawn, giving a complete description thereof, including the name of the payee, the date, the number, and the amount thereof; otherwise, the institution is not liable for paying such check. Post-dated cheques are common and enforceable. Post dated checks are not illegal, they may not be accepted by some companies but it is well established law that a post dated check can be issued. You better have an up front understanding about exactly when the check will be deposited. Bad news: The check date won't delay anything. This is my first time postdating a check. A person writing a postdated check may violate the law if the check is returned by the bank to the recipient because the maker’s account does not have the funds on deposit necessary to cover the check. Upon receiving a postdated check, the recipient (such as a merchant or wholesaler) will provide the goods or services. Once someone hands you a signed check, you are legally allowed to deposit that check at anytime. I knew I got paid on Jan. 1, 2008. such as an online bill payment. We believe everyone should be able to make financial decisions with confidence. Find out if he or she will accept payment later. For example, at trial, a witness might recount a defendant’s statement made to the witness admitting that the defendant wrote the victim a worthless check in order to get the victim to provide the defendant something of value. However, even if your employer does post date your check, you can often negotiate your check on … (Colo. Rev. How can a prosecutor win a guilty verdict if the prosecutor must prove that the defendant had the intent to defraud the recipient of the postdated check? Please help us keep our site clean and safe by following our, Prevent identity theft, protect your credit, The difference between term and whole life insurance, How medical conditions affect your life insurance rate. If the check goes through, you'll pay an overdraft fee. 4 Ways to Earn More Interest on Your Money. This may influence which products we write about and where and how the product appears on a page. Post-dated checks are perfectly legal. Is it illegal to write post dated checks in Florida? You're writing a check to your landlord, but you don't have enough money in your account. Hintz says that only criminal intent, such as intentionally not having enough money for a payment, can be grounds for check fraud. No fraud allowed: There’s no law making postdated checks illegal. The only time they could refuse to cash a post dated check is when the writer of the check notified the bank in advance not to cash the check.. A post-dated check (or post-dated cheque) is a check written with a future date. Writing a postdated (PD) check is legal in Texas and all other U.S. states; therefore, cashing it before the date on which it is due for payment is not legal. But just about anything with the right signature on it is properly payable, including post-dated and overdrawn checks. Yes, from a money market or online savings account, $35 / Up to four times per day if account is overdrawn by more than $5, + Overdraft line of credit; you pay interest only on the amount you use, + One-day grace period to correct overdraft, Yes, from an online savings or brokerage account, $25 / Up to three times per day if account is overdrawn by more than $10. Unlike a normal check, a postdated check is not necessarily payable on demand. 37;Young v. State, Ga. App. Rev. Therefore, a defendant who writes a postdated check that is returned because of insufficient funds will not be convicted of writing a worthless check unless the prosecutor is able to prove that the defendant wrote the postdated check with the purpose of defrauding the recipient or with the knowledge that the check would not be honored at the later date used on the check. Post-dated checks are technically illegal throughout the entire US. Here is a list of our partners. Talk to the recipient. If someone gives you a postdated check with the understanding to hold it till the date and it then bounces, you must suit to collect. If the check goes through, you'll pay an overdraft fee. A post-dated check is an order to pay the bearer at a definite time in the future. 2. When evaluating offers, please review the financial institution’s Terms and Conditions. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. If your lease requires you to issue a post dated check, then that term of the lease is unenforceable. Banks and credit unions generally state rules about postdated checks in their account disclosures. So you date the check a few days in advance — also called postdating it — hoping your paycheck will clear by then. But you can ask your bank to delay cashing a specific check, and, depending on your state and the bank, it might comply. Find out if he or she will accept payment later. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our opinions are our own. 2007), “ [a] postdated check is not covered” by the statute. Has a crime been committed? A Class 6 felony carries also carries a minimum of a year and a maximum of 18 months in prison and a fine. Post-dated checks - A bank may charge a customer's account for a check before the date of the check, unless the customer has given the bank clear notice of the postdating in a timely fashion that affords the bank a reasonable opportunity to prevent the check from being processed. His work has been featured by USA Today and the Los Angeles Times. Financial institutions now send digital pictures of checks to other financial institutions, so they can be cashed more quickly. One way to look at it is all checks are a promise that funds will be in the account when presented. For example, someone might mail a check for a utility bill before payment is due, and put the bill's due date (not the date the check is being written) on the check. Postdating a check may be considered illegal if the check writer’s account does not have the necessary funds to deposit the check, and if the writer’s intent was to defraud at the time of issuing the check. The Uniform Commercial Code, a collection of business laws adopted or adapted by many states, gives financial institutions the right to process a correctly written check with a future date. Your bank provides this service, usually for a steep. The bank is not required to hold post dated checks. Post dating a check isn’t in itself illegal. If a bank has been so notified and it then charges the check against a customer's account before the check's date, it is liable for … Pre-qualified offers are not binding. Class 2 misdemeanors carry up to 12 months in jail and a $1,000 fine, while Class 1 misdemeanors carry a maximum of 18 months in jail and a $5,000 fine. . Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. However, if you postdate a check and have no intentions of actually paying a person or entity the amount owed, you are committing a crime. Our partners cannot pay us to guarantee favorable reviews of their products or services. I post dated a check to my dentist on Sept 29 for Oct 16, and I was assured that they would not deposit until 10/16, well, today, they deposited it that evening on 09/29, it went into my account on 10/01, even though I wrote on the date area ''Post Dated 10/16/08'' , needless to say, it has totally messed up my account. It’s not illegal to postdate a check if your intention is to make sure that you have enough funds in your account to cover the amount owed. But you can ask your bank to delay cashing a specific check, and, depending on your state and the bank, it might comply. Under Georgia law, proof of any of the above-listed conditions will satisfy the intent element of the crime that is necessary for a conviction. In addition to criminal penalties, state laws authorize civil fines for writing bad checks. However, it is illegal to solicit a post dated check with the intent to file a suit for a bad check. A signed check immediately becomes legal tender that a bank can deposit or cash before the indicated date on the check. In such cases, the defendant’s admission, if believed, would provide the required proof of the defendant’s criminal intent to defraud the victim with a postdated check. For example, under Georgia’s deposit account fraud statute, the defendant is presumed to have written the check with the knowledge it would bounce if: The fact that a postdated check is not honored because of insufficient funds does not, by itself, establish that the maker of the check committed a crime; the prosecutor must prove that the defendant had the intent to defraud at the time of writing the worthless check. No, a post dated check is not legal. For example, in Colorado, a conviction for writing a bad check for $500 or less (or two or more bad checks within a 60-day period that total less than $500) is punished as a Class 2 misdemeanor, a single check for (or two or more bad checks written totaling) $500 or more but less than $1,000 is considered a Class 1 misdemeanor, and a single check (or two or more checks written within 60 days that total) over $1,000 is punished as a Class 6 felony. Also, a bank is suppose to by law cash post dated checks when received even though some might refuse it is against the law. The post-dating of the check creates an extension of credit, even if only for a day, and converts the case to a bad debt situation. The Supreme Court has ruled that the stop payment of post-dated cheques issued by a person to settle his debt or liability could amount to a penal offence. In 1998, the Supreme Court ruled that a post-dated cheque is a bill of exchange and does not become payable on demand until the date written on the cheque When evaluating offers, please review the financial institution’s Terms and Conditions. 17-A-708). Spencer Tierney is an expert on certificates of deposit at NerdWallet. How can a prosecutor win a guilty verdict if the prosecutor must prove that the defendant had the intent to defraud the recipient of the postdated check? This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. Tell the person receiving your check — your landlord, a merchant, a friend or family member — about your situation. However, it is illegal to write a check when you know you don’t have the funds to cover it. Before you decide, ask us to send you free written information about our qualifications and experience. 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