How Long Does One Have to Cash a Check?
In an age when people conduct financial business online and through ATMs, keeping up with check cashing guidelines is not a priority. That changes once you find a check you forgot to cash. Rather than making a trip to the bank to talk to the new teller who may not know, do your homework ahead of time to ensure you know your rights about cashing older checks.
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Misconceptions
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The Uniform Commercial Code (UCC) states in Article 4-404 that "a bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months after its date." This verbiage is what inexperienced tellers or bankers reference when they tell you checks are no longer valid, or stale, after six months from issuance. What they fail to mention is that the UCC goes on to say the bank has discretion to charge their customer's account after six months has elapsed. (See Reference 1) In short, the drawee bank is under no obligation to pay the check, but they can if they so choose. (See Reference 2)
Considerations
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Although they look similar, not all checks are equal. There are two basic types of checks and each has a unique set of guidelines and regulations that govern its use. Understanding what kind of check you have is the first step to determining how long you have to negotiate it. (See References 2 and 3)
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Consumer Checks
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Consumer checks are the ones you write, if you still carry a checkbook. While there is no official stale date banks are required to honor, you are at the mercy of the paying bank as to whether they will allow a check older than six months to clear. Assuming funds are available in the account, the bank loses nothing by cashing the check.
Of course, you can try depositing the check in your account instead of cashing it. Check clearing between banks is an automated process with little human oversight, so it may clear without issue. Never count on this. If you have any doubt, contact the maker to have the check reissued. This is less inconvenient than returned check fees.
Bank Checks
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Bank checks are also known as cashier's checks or official checks. Once your bank collects the funds from you to issue this check, they are obligated to pay the check amount to the payee. According to Article 3-312 of the UCC, only loss, theft or destruction justifies stopping payment. Because bank checks are the certified checks referred to in the UCC, they are not subject to the six-month stale date.
Warning
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Keep in mind that if a check of either kind states the check is not valid or is void after a certain date, this takes precedence over the standard check cashing guidelines. Once this deadline passes, the maker of the check must reissue a new check to you. Remember, it is never acceptable to change the date on a check you receive, even if you obtain the maker's verbal permission. The alteration of the check by anyone not on the maker's account constitutes check fraud.
As a rule of thumb, cash checks as soon as possible. Not only will you avoid stale date issues, you will limit the risk of the maker forgetting the check is still out there and spending the money meant to cover it. Timely cashing of checks also helps avoid the maker closing the account before you get your money.
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