Can a Bank Cash a Check Before the Date on It?
A checking account holder may find it necessary to write a post-dated check for one reason or another. The account holder expects that, because the date on the check is written days in advance, that the payee won't cash it until that date. Bank customers can take recourse against a bank and payee if a check is cashed before the date on the check.
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Negotiable Instrument
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Because your check is what is called "negotiable instrument," the bank where the check is being cashed can cash it before the date written on the face of the check.
The payee is legally able to negotiate your check to his bank at any time he wishes. If you suffer any damages -- bounced check fees, for instance -- you can go after the payee to get the lost money back.
The Bank's Responsibility
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Banks are allowed to cash post-dated checks because, according to the law, it is too hard for the banks to look at every check they cash in a single business day. Banks process up to 45,000,000 checks every day.
The bank is only supposed to cash "properly payable" checks, meaning checks that have the right signature. Checks being cashed against overdrawn accounts and post-dated checks are legal for presentation at the payee's bank.
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Giving Reasonable Notice
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In the event you have to write a post-dated check, protect yourself by giving your bank reasonable notice to prevent the check from being paid out until the date you wrote on the face. Write a letter to the bank, identifying yourself as a bank customer, provide your account number, describe the check, giving the number, date written and amount the check was written for and the name of the person you wrote the check to.
In some cases, though, the bank will still cash a post-dated check early even though the account holder gave reasonable notice. In these situations, the account holder should talk to an attorney to find out what her rights are and to discuss remedies.
What is the Bank Responsible For?
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The one instance where the bank can be held responsible is when you provide reasonable notice. When you give the bank information about your post-dated check, including the amount and number of the check, and the bank indicates they have this information, the bank can be responsible for your financial losses, including reimbursing you for any overdrawn account fees and damages caused by your improperly overdrawn checking account.
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References
- Photo Credit balancing checkbook image by palms from Fotolia.com
