Many state in their terms and conditions that post-dated cheques should not be written, while some include a note at the front of chequebooks, saying post-dated cheques should not be written.
But, what if the check recipient doesn’t listen to my instruction and deposits the check before the written date?
I turned to Wells Fargo and Chase to help me answer that question. A banker said, “Generally, we would try to pay out the fund on the check even if it was post-dated.
If your bank paid the cheque and increased your overdraft, you should speak to your bank about this, though you might find it was outside the terms and conditions of your account.
If the payer’s account is closed, the paying bank would not be obliged to honour the cheque and you would need to ask for payment by another means.
Historically, if someone wanted to phase their payments, such as for paying into an insurance policy, they issued a series of post-dated cheques to the recipient.
Because this was an accepted payment method, the receiver of the cheque had a system in place for making sure that the cheques were not paid in before the intended date.However, very few people have these post-dating systems in place now as there has been a move to automation, so any post-dated cheques they receive tend to all be paid in at the same time, running the risk of being returned unpaid.Many banks state in their terms and conditions that post-dated cheques should not be written while some include a note at the front of chequebooks, advising that post-dated cheques should not be written.However the cheque would be evidence of the debt in the event of a dispute.It is the same advice for businesses – you should not post-date your cheques.If the bank does not spot that the cheque has been post-dated the cheque would be paid before you intended it to or even returned unpaid if you have insufficient funds in your account – potentially incurring charges for you.