post dated cheque debited ahead of time

  jack 19:54 23 May 06
Locked

With a largish holiday invoice to pay on the 25 I organized cash transfer from a deposit a/c to c/a
and, so that I would bot overlook things prepared and sent of the cheque ,but dated 25th the due date.

I derscoved the holiday co paid in and the cheque cleared immediately - post date not withstanding.
Foruntaly the money was in by this time.
I thought it a little sttange that this should happen -disregard of post dating that is- When i quried the bank They daid 'Oh yes thats how it is - you write a cheque we pay it on presntation@

  bosmere 20:08 23 May 06

jack banking standards are not what they used to be - at least the bank didn't try to blame it on the computer!!

  bigb 20:16 23 May 06

The bank is correct in so much as it is an offence to post date a cheque! However if you had become overdrawn you may have been successful in a claim against the company/bank for presenting the chq and the bank accepting when lodged through the company's account.

I work for a bank by the way!

  Dazza40 20:39 23 May 06

I also work for a Bank and have done for a long time. When I started we used to check for dates etc on larger amounts. This is not done these days and the previous comment is accurate I'm afraid.

  Al94 21:35 23 May 06

Both of the last two posters are 100% correct, you must have the funds in your account wwhen you write a cheque

  DieSse 22:27 23 May 06

In Spain, at least, post-dating a cheque has no legal significance at all.

  Forum Editor 23:12 23 May 06

it is NOT an offence under UK law to post date a cheque. It's perfectly legal, but it's not advisable. The reason (as you discovered) is that creditors and banks may simply ignore the date and present the cheques for payment anyway.

The true legal situation is this:-

1. It is an offence to write a cheque in settlement of an account if at the time you know that your bank account has insufficient cleared funds to meet the cheque on presentation. That's slightly different from the post-dated situation. In that context you deliberately post-dated the cheques so that funds would be available upon presentation. You broke no law by so doing.

2. A post-dated cheque does not count as settlement of a debt, and the other party is not legally obligated to accept it at all - in other words, simply giving someone a post-dated cheque doesn't meant that you've paid them.

3. Banking rules do not forbid the writing of post-dated cheques, but they don't encourage them.

Most banks would refund any overdrawn charges they made if by paying a cheque ahead of the date written on it they pushed you into overdraft - it's their responsibility to check the date, whatever they might try to tell you to the contrary. It's sloppy banking practice not to check dates, and simply saying "'Oh yes thats how it is" doesn't mean that it's OK - it isn't.

If your bank tries to tell you that it doesn't "permit" post-dated cheques, or that it's not responsible for the consequences of paying a cheque in advance of the date you put on it, I advise you to protest in the strongest possible terms. You may have risked the bank ignoring the date by post-dating your cheques but you certainly did not commit any offence.

When dealing with banks it's important to remember that you are the customer, it's your money, and that they are in business to serve you - it's not the other way round. Banks are commercial organisations, and are subject to the same market forces as any other trading business. Sometimes they need to be reminded of the fact.

  jack 10:20 24 May 06

Thank you all for that -as previously stated there was no problem the funds were there.
With armchair banking [No internet banking for me]
I seldom write cheques these days.
Do banks still go through the business of returning the masses of incorrectly dated cheques that must still occur in January of each year?

  anchor 10:24 24 May 06

Not only do banks not look at the date, from a newspaper article I read a couple of years ago, they do not even look at the signatures. It said the reporter signed his personal cheque, Mickey Mouse, and it was honoured.

  961 10:40 24 May 06

The bank for which I worked long ago gave up examining cheques under a certain (fairly large) amount for things like dates, words and figures differ, signatures, on the basis that it is just not economic where customers demand free banking.

By long ago, I mean around the time they stopped charging personal accounts on the basis of the number of cheques issued. i.e. around 1970

It is less expensive for them to deal with the problems that may arise rather than meet the staff costs involved in examining cheques

Post dated cheques were never a good idea simply because the recipient will invariably present it immediately.

  spuds 11:52 24 May 06

It's all well and good bank's stating that 'they no longer do this or that', at the end of the day, banks are a commercial enterprise who have customers. Ignoring customers instructions seems to be increasing, especially when penalty fees could be applied to the benefit of the bank. Recently I was offered a deal in which the company requested three post dated cheques, each cheque was to be presented to the bank every two months, over a period of six months. I didn't take the offer up, but if this arrangement had made me seriously in an overdraft situation, through a bank not checking payment dates, then I would be at high temperature level.

I know this as nothing to do with post dated cheques, but recently I had a very 'heated' session with Barclaycard regarding penalty charges. I did not receive my usual statements, and I was also unable to log onto my account, following this through by telephone contact, I was vertually told that this was no concern of Barclaycard by their call centre advisors.Penalty fees would occure, and that was that. Being a loyal Barclaycard user, since it's formation, I was not taking this attitude lightly. Contact (after insisting)at an higher level soon brought common sense results.

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