Post dating cheque - illegal

M

Moribund

Registered User
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I recently post dated a cheque for September but it was cashed two days ago putting me into an overdrawn situation.

I rang my bank and they informed me that Post dating cheques is illegal. This was the first I was made aware of this. Is this common knowledge?
 
Oh no, thats's news to me! I have done it many times, but the companies didn't cash it until the date on the cheque.


G
 
I don't know if it's "illegal" (I doubt it) but I know that some banks T&Cs state that you must not post-date cheques & that even if you do, they may honour the cheque & pay out before the post-dated date - if that makes sense!
 
I may be wrong, but I would imagine that it was an error by the bank that accepted the cheque because they did not check the date on it. If the date does not matter, why put it on the cheque in the first place?!?
 
Never heard this - we receive post dated cheques from time to time - if I thought it was illegal I would have no hesitation in smugly informing those concerned ;)
 
Doesn't Revenue require post dated cheques in certain circumstances (e.g. when businesses in arrears with their tax liabilities come to some arrangeement regarding a scheduled of payments to clear the liabilities)?
 
This is complete nonsense...someone in the bank is spoofing to cover there own back. Post dated cheques are not illegal and as Clubman pointed out even Revenue accept them.
Demand the bank reimburse you and rectify the situation.
 
Thanks folks,

I just wanted to check my own sanity on this. I will follow this up with another call and see what answer I get this time. I may ask them to put it in writing.

Moribund
 
Just spoke with the bank again and was told the following:

It is not actually not illegal to write a post dated cheque, however it has no real value in the banks eyes until the date is reached. I believe that it may not be considered legal payment for something until the date is reached (this may be why they said it was illegal but this is heading into legal/financial niceties that I do not understand). As the service I was paying for was not until September it was fine for me. I had asked the person not to cash it but they were only an intermediary and so the message may not have got to the person who actually cashed it.

On looking at the banks web-site website in their Ts& Cs they do state that they "may pay post-dated cheques if they are presented before their due date" so that is their escape clause. In this case the reason the cheque was cashed was due to human error in that they did not spot the date. They did offer to try and undo it but as I was able to transfer the funds to cover it (it was a relatively small amount) I decided that there was no benefit in this.

They will refund me the interest and waive any Overdrawn fee in this instance also.

I have asked if they could send me on a more 'definitive' statement or information about post-dating cheques but will wait and see.

In the meantime be warned Post-dating does not protect you from the bank cashing it in advance.
 
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Moribund said:
...On looking at the banks web-site website in their Ts& Cs they do state that they "may pay post-dated cheques if they are presented before their due date" so that is their escape clause. In this case the reason the cheque was cashed was due to human error in that they did not spot the date. .....
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For a bank on whom a cheque is drawn to catch a post-dated cheque would probably require that someone in that bank inspect each and every cheque for irregularities when the cheque comes back to the branch (if indeed the physical cheques are even sent to the branches any more).

Bear in mind that the date is handwritten on the top of the cheque; it is not part of the encoding at the bottom so is not machine readable.

I doubt very much if this inspection happens any more even in banks where the volumes are small. I worked in a bank branch in the late '80s and remember when we were told to stop inspecting cheques of under £100.

One could argue that the bank where the cheque was presented should not have accepted it, but if the cheque was part of a large lodgement it probably would not have been inspected fully there either.

This is one possible reason why the banks see it necessary to include the get-out clause quoted above.

I could be wrong though... I have not worked in a bank in nearly 20 years and systems and processes have probably changed a lot.

Paul.
 
A few years ago I was paying my rent by cheque. As I was going away on holidays at the end of the month, I handed two cheques to my landlady - one for the current month and one for the following. She went off and cashed them both, leaving me in a slightly 'stretched' position.

I rang my bank and informed them that hey cashed a post-dated cheque. Money was put back into my account and my landlady received my post-dated cheque in the post with a note to cash it on or after cheque date.

So, to answer OPs question, no, post-dating cheques is not illegal and chances are that you're being told it is because the bank clerk you spoke to can not be @rsed to fix their own mistake.
 
I was told a number of years ago by a bank official that postdating cheques was illegal and that they (bank staff) do not look at the dates unless the cheque is for a very large amount.
 
Joe1234 said:
I was told a number of years ago by a bank official that postdating cheques was illegal and that they (bank staff) do not look at the dates unless the cheque is for a very large amount.
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What if the cheque was out of date? All cheques should be checked by the official whose hands they went through you are thought that on the first day of bank official school (as a former pupil i remember it well).

The bottom line is that legally post-dating has no effect it is purely up to the payee to present it or not. The revenue will accept post dated cheques and keep them on a file. It has nothing to do with the bank on which the cheque is drawn.
 
Joe1234 said:
I was told a number of years ago by a bank official that postdating cheques was illegal and that they (bank staff) do not look at the dates unless the cheque is for a very large amount.
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This is just a spoof from the banks to cover the ineptitude of their staff...a poster made what's a salient point about cheques that are out of date. The bank just don't want the hassle of rectifying their mistake so try and put the burden on the person who issues the cheque.
 
KalEl said:
This is just a spoof from the banks to cover the ineptitude of their staff...a poster made what's a salient point about cheques that are out of date. The bank just don't want the hassle of rectifying their mistake so try and put the burden on the person who issues the cheque.
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Exactly.
 
s3 of the 1884 Bills of Exchange Act defines a cheque and includes the phrase "payable on demand or at a fixed or determinable future time". therefore post dating a cheque is not illegal.
Paying a post dated cheque is more of a grey area, however, general banking practise would be not to pay them, if they are spotted. Banks tend only to look at high value cheques so it could happen that a smaller one goes through
However, by refusing to pay it, they would bounce it and that could cause you issues with the person who you gave the cheque to. You could kick up a stink and demand that your accout be credited back, but they would chase the payee for the funds
Best thing to do is to ring and speak to the manager, explain that the information given to you by the staff member was factually incorrect, that you understand that they an make mistakes and you want to be reasonable about it, and then ask for an interest free overdraft until the date of the cheque. Tell them that will save you having to complain to their area manager or the Ombudsman
 
Mpsox said:
Paying a post dated cheque is more of a grey area, however, general banking practise would be not to pay them, if they are spotted.However, by refusing to pay it, they would bounce it and that could cause you issues with the person who you gave the cheque to.
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I'm not sure this is relevant...of course giving a post dated cheque to someone as payment and not telling them is dodgy. Generally it's an agreed arrangement between the two parties, i.e. the post dated cheque is an acceptable form of payment.
But trying to pass one off on the sly would be outrageous.
 
Kalel

not saying pass it on the sly, what I'm saying is that if the bank has paid the cheque already, then if you try and get them to bounce it, it will cause issues for whoever you gave the cheque to in the first place
 
Mpsox said:
Kalel

not saying pass it on the sly, what I'm saying is that if the bank has paid the cheque already, then if you try and get them to bounce it, it will cause issues for whoever you gave the cheque to in the first place
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No it won't because you only give someone a post-dated cheque when they agree to it. If they go and try and lodge the cheque before the agreed date they're the one creating the problem, so whether it causes issues for them or not is irrelevant.
 
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