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.But you can ask your bank to delay cashing a specific check, and, depending on your state and the bank, it might comply.(15 USC § § 1692f, 1692k) Some states have laws that mirror the federal law’s prohibited debt collection practices. § 63-4006) Laws governing the early cashing and depositing of postdated checks can vary among states, although many jurisdictions have similar provisions.
So you date the check a few days in advance — also called postdating it — hoping your paycheck will clear by then. Here’s what you need to know about postdating and what you can do instead.
» MORE: How to write a check “It’s kind of a tricky scenario,” says Matt Foster, founder of the rental property search site i Rent and a landlord in Ventura, California.
A debt collector who commits one of the prohibited collection practices faces civil penalties.
The penalties can include damages caused by the debt collector’s violation.
Luckily for them, Foster waits to cash postdated checks, but he isn’t legally obligated. Banks and credit unions generally state rules about postdated checks in their account disclosures.
Some of the biggest banks, for example, note specifically that they can honor checks that are made out for future dates.Such means include depositing or threatening to deposit a postdated check before the date on the check. You may have grounds to file a legal action to recover any harm you suffer as the result of the premature cashing or depositing of the check.Idaho’s unfair collection practices statute contains a provision identical to the federal notification provision pertaining to checks postdated by more than five days. The law also prohibits the recipient of a postdated check from intentionally cashing or depositing the check prior to the check’s date if the recipient represented that postdating the check would prevent the check from being deposited or cashed prior to the check’s date.The same law disallows an organization from making the same representation but then cashing or depositing the check without reasonable procedures in place to prevent the premature cashing of the postdated check.Many states have laws addressing postdated checks and consequences for cashing a postdated check before the check’s date.