Post dating checks illegal michigan


05-Oct-2016 13:20

You postdate a check by writing a future date on it.

People typically do this when they want to give a check to someone but aren't certain they'll have enough money in their account until a certain date to cover it.

However, a bank has no duty to respect that limit, and may pay the check in advance of its stated date, unless the customer gives notice to the bank of the postdating, describing the check with reasonable certainty.

(Commercial Code § 4401) It is a violation of the Fair Debt Collection Practices Law for a debt collection agency or a creditor who regularly collects its debts to deposit a postdated check before its due date.

I work at a 24-hour call center for [large corporate bank].

At least once a day, I get a call from somebody who has written a post-dated check, had the payee cash/deposit it before the written date, and is incensed that the bank would honor the item.

State and federal laws cover the cashing and depositing of postdated checks, and laws vary from state to state.

It's not illegal to postdate a check, unless you're attempting to commit fraud.

(Commercial Code § 4404) There is no law that prohibits a check writer from postdating a check (giving it a date in the future).

A judge might have to see whether the checks given in evidence bear sequential serial numbers, or appear to have been written at the same time. Special rules apply if a check postdated by more than five days is given to a debt collection agency or a creditor who regularly collects its own debts.

The payee must give notice to the check writer at least three days, but not more than ten days, prior to depositing.

(f(4)) "The presentation of a postdated check is not subject to the civil or penal sanctions" that would normally apply to someone who wrote a check with insufficient funds because the postdated check promises "to discharge a present obligation at a future date" and that money would be available to meet the debt when the check is cashed.

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Should the question arise the check is "postdated", there should be no problem if the debtor wrote the words "postdated" above the date of any of the checks submitted, however, without this kind of documentary evidence, it may be difficult for the debtor to prove the checks were "postdated".

I patiently explain to each of these people that the information in the Date field of the check is for the reference of the payor only, that a post-dated check amounts to nothing more than a verbal agreement between the payor and payee, and that the bank will honor any check that has the account number, routing number, written and numerical amount, name of payee, and signature of authorized accountholder. If the check in question overdrew the account, or was rejected for nonsufficient funds, I further explain that it is against federal law to write a check for an amount greater than the available funds in the account at the time the check is written.