Rotate image Save Cancel. Breaking news: See More. More Rules New Posts. Next Last. Landlord requesting post dated cheques at extension of tenancy agreement I’m on a 12 month fixed term tenancy agreement. Next month comes the end of fixed term and the tenancy agreement will be turned to a month-to-month term. Landlord is requesting 12 post dated cheques to cover the next 12 months of rent.
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In banking, a post-dated cheque is a cheque written by the drawer (payer) for a date in the future. Whether a post-dated cheque may be cashed or deposited.
When I asked Santander why a post-dated cheque had been cashed, I received the following response: ”Hello, Thanks for your e-mail.
Can a bank or credit union cash a post-dated check before the date on the check?
Two potential reasons for this include:. These caveats apply when writing a future date on a check:. In most cases, you can deposit or cash a postdated check at any time.
Landlord requesting post dated cheques at extension of tenancy agreement I’m on a Dating Ontario, it is technically illegal to ask for post-dated cheques, even.
A rise in using cheques for payments has occurred due to the high fees on electronic transfers. However, within the UAE there are serious factors that need to be considered when using cheques as payment. If a cheque bounces it is treated as a criminal offence with the potential of jail time, hefty fines and an overall risk to your credit score. Thus, it is pivotal to comprehend the pros and cons of using cheques, and, especially, when writing post-dated cheques.
A potential benefit of this payment method is how it can foster healthy and long-lasting business relationships. When you are able to rely on a supplier and it is possible to pay with post-dated cheques, with full confidence that the transaction will be honoured, you can assure a robust financial future.
Post dating cheques illegal uk
Part I—Preliminary. Short title [ see Note 1] Commencement [ see Note 1]
day they write those checks, some folks will postdate their checks so While it certainly wasn’t illegal for M. to provide a postdated check.
Please contact customerservices lexology. This has especially been the case for international suppliers and local traders seeking collateral for sales on credit to dealers and distributors. The consequence of default was detention and imprisonment. A recent change of law in Dubai appears to significantly reduce their effectiveness as a form of security.
Authorities generally assumed the culpable mental state once the bounced check was included with a criminal complaint, with the burden of proof falling on the signatory, not the complainant. Nonpayment of obligations underwritten by PDCs has historically resulted in confinement for the company manager or individual signing the checks. Payment of existing obligations is the intent of Article If [payment] occurs after the ruling has become final, execution is stayed. Article provided a blunt, but effective way for creditors to pressure debtors into repayment.
When threatened with confinement, debtors have frequently found a way to make good on their debts. Penal Law No. Dubai Penal Law No.
Post dating cheques uk
If you have ever written a check and made it payable to someone but included a future date, you have postdated a check. The most common reason why you would postdate a check is if you are unsure about the number of funds that you currently have in your account. While you may have written a postdated check in the past or known someone that has done this and given a check to you, is this legal?
An ATM deposit, and since most ATMs will not scan or OCR the check, is subject to verification with regards to the date, amount, payee name and proper.
We respect your privacy. All email addresses you provide will be used just for sending this story. Thanks to automated payments and online banking, many of us rarely if ever write checks, but millions of Americans still pull out their checkbooks every day to pay their bills. Consumerist reader M. The only way to possibly prevent a postdated check from being processed early is to let everyone involved know in advance — and in a format that goes beyond just postdating the check. In some states, if a consumer gives the financial institution reasonably timed written notice about a postdated check before the check is received, then the notice is valid for up to six months.
That means the bank must wait to cash the payment until the date stated on the paper or until six months is up, whichever comes first. But if the consumer gives oral notice to the bank, the institution must only wait 14 days before processing the note — even if that happens to be before the date on the check. Additionally, the only time a bank can be held liable for processing a postdated check before the indicated date is if that notice is still valid.
In which case, the CFPB says the institution may may be on the hook to cover damages such as the cost of overdrafts and other fees. Pamela Banks, senior policy counsel for our colleges at Consumers Union, tells Consumerist that sending a postdated check can be an indicator to the recipient that the check-writer is in dire financial straits. She says that many people who end up falling into predatory lending traps like payday loans have also used postdated checks to try to stave off debt collectors.
One of the myths that somehow refuses to go away is the myth that post-dated checks are “illegal. There is nothing illegal, inappropriate, unlawful, unethical, unprofessional, or unconscionable about a creditor asking a customer to issue a post dated check, nor is there any reason a customer cannot issue one or a series of post dated checks to clear a past due balance. There are several advantages to taking postdated checks in settlement of an account balance including these:.
The fact that you are holding a check that will be presented to the bank for payment on a specific date places a burden on the debtor to have funds on deposit when the check is presented. In the event that the check is dishonored and the customer is sued, the existence of the check makes it harder for the customer to argue that the debt was never owed. Even if a post dated check is not honored when it is first presented, there is always the possibility that the check will clear at its second presentment, or that the creditor can tender the check to the debtor’s bank on a collection basis.
Post-dated Cheques Cashed Early. Sometimes a post-dated cheque is deposited before the date on the cheque. Banks have processes in place.
Accepting a postdated check from a tenant may seem like a surefire way to get the money that you are owed, but this does not always lead to payment and sometimes may even lead to further complications. Unless you are percent sure that the tenant can be trusted and that there will be funds to cover the check when it is ready to be cashed, it may not be a good idea to accept a postdated check. The Uniform Commercial Code states that a bank may honor a postdated check provided the check is otherwise safe to cash and the account owner has not provided the bank with “reasonable notice of the postdating.
This means that a tenant may legally postdate a check to you and that you may even be able to cash it when you receive it, but if the bank has been notified of the postdating you will have to wait until the date listed on the check instrument before you may receive the funds. While it may be a crime for a tenant to write a check when there are insufficient funds in his account to cover the check, California’s worthless check laws may not cover a landlord if a postdated check was accepted.
According to California’s bad check law, writing a check with the intent to commit fraud or knowingly writing a check when there are insufficient funds to cover the full amount of the check are both illegal. However, if the tenant writes the check with the intent to have funds in the account on the date that the check is postdated for, there is no intent to commit fraud or pass a worthless check and therefore no illegal activity has technically taken place.
Accepting a check that is postdated may provide the tenant with a legal defense that negates criminal intent even if the check doesn’t clear. As a landlord, collecting a check that has been postdated could be dangerous. The tenant may know that he or she will not have the money in time, the check could have a stop-payment placed on it, or the check may bounce.
Waiting to cash a check that has been postdated provides the tenant with time to make other living arrangements, move out or otherwise abort the lease agreement.
Is it illegal to issue a post-dated cheque?
In banking, a post-dated cheque is a cheque written by the drawer payer  for a date in the future. Whether a post-dated cheque may be cashed or deposited before the date written on it depends on the country. A Canadian bank, for example, is not supposed to process a post-dated cheque and if it does so by mistake, the cheque writer may ask their bank to correct the error.
I telephoned the bank and they told me that I was breaking the law writing a cheque with the wrong date on it and that It was illegal!! Like. Featured Classified.
We would like to ensure that you are still receiving content that you find useful — please confirm that you would like to continue to receive ILO newsletters. In Sampelly Satyanarayana Rao v Indian Renewable Energy Development Agency Limited 1 the Supreme Court held that a dishonoured post-dated cheque for repayment of a loan instalment that was described as ‘security’ in the loan agreement was covered by the criminal liability set out in Section of the Negotiable Instruments Act In accordance with Section , it is a criminal offence for a person to issue a cheque which is subsequently dishonoured from an account maintained by him or her in order to pay any amount of money to another person from that account for the discharge, in whole or in part, of any debt or other liability.
While deciding whether dishonoured cheques issued to discharge existing liability fall under Section of the act, the Supreme Court further explained that the question of whether a post-dated cheque is for “discharge of debt or liability” depends on the nature of the transaction. Section is attracted only if, on the date on which the cheque was issued, liability or debt existed or the amount had become legally recoverable.
Interpreting the word ‘security’ as used in the underlying agreement between the parties, the Supreme Court held that it referred to the cheques issued to repay instalments of the loan the moment that the loan was due. Once the loan was disbursed and the instalments fell due as per the agreement, the dishonoured cheques gave rise to criminal liability under Section of the act.
Cheques – What you need to know
Moderator: TenantNet. Users browsing this forum: Google [Bot] and 1 guest. TenantNet Forum Where tenants can seek help and help others Skip to content. Tweets by TenantNet. Post dated checks requirement? Lease was signed back in April, and we did not provide post dated checks at the time no waiver was provided , and the landlord did not ask for them.
Whilst this is not illegal and is common practice, if you give a landlord/agent post-dated cheques you are trusting them not to pay the cheques into the bank until.
Most shops garages and restaurants will accept payment by cheque, although it is not universally the case because of problems with bounced and stolen cheques. If as seller does not accept cheques, or they accept only on a conditional basis, then a notice should normally be displayed on the premises. You are potentially liable to criminal fines and banned from being able to use write a cheque for up to five years.
However, the rule is not a draconian as may appear, for most banks make every effort to avoid giving grief to their clients. So, if it does happen to you, then the reaction of your bank is likely to depend on the circumstances and the relationship you have with them. If there are funds in your deposit account, you may well find they will contact you about the matter to make a transfer between the accounts. They may also insist on the return of the cheque book until the account has been restored into credit.
Within certain limits banks are free to charge their own fees for unpaid cheques. There may well be other penalties in the event of further breaches. If you are paying a large sum by cheque or you are nervous about being paid by cheque then it is possible to obtain a bank guarantee cheque in the same manner as is the case in most countries. There will be a charge for this service.