Don't post-date cheques!

MSE_Martin · 19 April 2005 at 5:44PM

I've had a spate of emails recently about problems after post-dating cheques. Let me make it simple. Post-dating a cheque means nothing. Banks are likely to ignore it. Do it and you may go into overdraft and have to pay fees. Or the cheque can bounce. Avoid it. Don't write a cheque unless you're ready for it to be cashed.

Is it ever worthwhile?

You could argue that if you're giving someone a cheque to hold onto, then its a good idea as long as you know they won't be cashing it till then. Having said that, if that's the case, it doesn't make any difference if you're simply write a cheque at the time, as it still won't be cashed.

newfoundglory · 19 April 2005 at 5:50PM

Makes sense; I mean come on, most banks don't even bother checking the signature on cheques so they are hardly likely to even pass a glance at something like the date!

Its also written into the terms and conditions of accounts, which clearly says don't post-date, and that if a cheque is presented as such the bank can pay it anyway.

dag_2 · 19 April 2005 at 6:25PM

Presumably you'd make an exception for loans against guaranteed post-dated cheques that pawnbrokers sometimes offer?

I appreciate that this is generally a very expensive way of borrowing money - but it's not the most expensive, and it's usually legal, no?

For example, if you're at risk of prison for arrears of maintenance, fines or council tax, and there's absolutely no other way you can pay it off - then you would be well advised to take a pawnbroker loan, no?

But apart from that - I'd agree. Definitely never issue post-dated cheques to traders or landlords.

paulherts · 19 April 2005 at 6:29PM

I was asked by Welwyn and Hatfield Council to provide them with a post dated cheque.

I refused and was surprised that a supposedly reputable organisation would even ask.

Paul

dunstonh · 20 April 2005 at 12:23AM

Back in my banking days, cheques under £500 were not checked for errors. I believe that limit is much higher nowadays.

Debt_Free_Chick · 20 April 2005 at 12:32AM

dag wrote:

For example, if you're at risk of prison for arrears of maintenance, fines or council tax, and there's absolutely no other way you can pay it off - then you would be well advised to take a pawnbroker loan, no?

I would say "no". Most creditors will allow you to come to an arrangement to pay by instalments. Even if the debt goes to the County Court, you get to offer to pay by instalments.

Some lenders can make this incredibly difficult, but they usually agree if you are persistent and your financial statement shows that you can't afford to repay in full.

livingdoll · 21 April 2005 at 12:07AM

I work in a bank clearing house and we are told not to look at the details on the cheques. As long as they are in sterling pounds and have a credit with them they get cleared! If the branches accept them then we do too, we dont have time to look at all the thousands that go through every day we just have to process them as quickly as possible.....

stumcgoo · 21 April 2005 at 9:32AM

I was told years ago that the machine that is used to unfold cheques only works with cheques that are folded top to bottom and that if you fold the cheque length ways it would take 5 days to clear. Is this still the case?

Cheers
Stu

lipidicman · 21 April 2005 at 9:44AM

since most chequebooks fold this way in the holders, I doubt it

JanCee · 21 April 2005 at 9:50AM

I working in banking for many years. When I started we checked every cheque, when I finished only cheques over £5000 were checked. The banks don't like this information to be public as it leaves them vulnerable to fraud. If you do post date a cheque you are relying on the integrity of the person you give it to not to present it until the due date.

stumcgoo · 21 April 2005 at 10:26AM

lipidicman wrote:

since most chequebooks fold this way in the holders, I doubt it

What do you mean in the holders?

When I say folded length ways I mean folding so that the crease is as long as possible. The same way as you fold A4 when making a paper airplane.

Cheers
Stu

Don't post-date cheques!

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