Post-dated cheques. What are the rules?

EmmaC_2

Hi,

I have not been on here for a while, so can I start by wishing everyone a happy, hassle-free Christmas

I post-dated a cheque to make sure it arrived in time, due to the snow, but it has been banked and taken me overdrawn. When I asked Santander why a post-dated cheque had been cashed, I received the following response:

''Hello, Thanks for your e-mail.
When you sign and issue a cheque you are authorising a payment and you should ensure that you have enough money in your account. A cheque should not be post dated if you don't have enough money in your account as the cheque can be presented at any stage.''


Does anyone know if the rules have changed? I thought a cheque could not be presented before the date written on it.


I would be really grateful for your help here.


Many thanks,


Emma

zppp

EmmaC wrote: »

Hi,

I have not been on here for a while, so can I start by wishing everyone a happy, hassle-free Christmas

I post-dated a cheque to make sure it arrived in time, due to the snow, but it has been banked and taken me overdrawn. When I asked Santander why a post-dated cheque had been cashed, I received the following response:

''Hello, Thanks for your e-mail.
When you sign and issue a cheque you are authorising a payment and you should ensure that you have enough money in your account. A cheque should not be post dated if you don't have enough money in your account as the cheque can be presented at any stage.''


Does anyone know if the rules have changed? I thought a cheque could not be presented before the date written on it.


I would be really grateful for your help here.


Many thanks,


Emma

Cheques are treated as being for immediate payment irrespective of whether post dated or not. You are solely relying on the person you paid the cheque to, to hold it until the date on the cheque.

Post dating is often covered in the terms and conditions of your bank. In short however, as soon as you issue a cheque, it is valid to be cashed immediately.

mjm3346

From the payments council website

Banks set their own policies on post-dated cheques and, in many cases, their account terms and conditions state that customers should not write them. If the recipient of a post-dated cheque attempts to pay it into their account prior to the date shown, it may either be returned unpaid, possibly incurring charges for both parties, or it may be cleared, creating problems for the customer who issued it.

Santander (business a/cs)

You may not issue post dated cheques. If You do issue

one and the payee presents it for payment before the date
on the cheque, we cannot guarantee that the cheque will
not be paid. If it is paid, we will debit the amount of the

cheque from Your Account

Browntoa

seen a notice in the window of the local cheque cashing shop saying they no longer take Santander cheques

Mikeyorks

EmmaC wrote: »

Does anyone know if the rules have changed?

They've never been materially different ..... you've always been at risk of someone presenting a PD cheque on receipt. Normally because they don't spot the date ..... and the Banks no longer check them as it's manpower intensive for little benefit.

The HMRC view on it (as they get a lot in the run up to 31st Jan .. SA due date) is here :-

HMRC will only accept a postdated cheque in the following circumstances:

• before your tax is due - where the cheque is for the full amount and it arrives by and is dated on or before the due date
• after your tax is due - where you have a prior arrangement with your HMRC office to settle your liability with post dated cheques

Because of the highly automated operations used for processing postal payments HMRC can only identify a postdated cheque if there is a letter with it.
If you don't send a covering letter HMRC won't recognise that the cheque is postdated and will present it straight away.

..... the reason for the letter is not so much to tell them the cheque is postdated - but more that the extra thickness tracks it away from the automated machine that opens envelopes known to contain only a cheque / payslip. As these are never checked after opening.

davetrousers

EmmaC wrote: »

I post-dated a cheque to make sure it arrived in time, due to the snow,

How does post-dating a cheque govern when it will arrive in the post?

mjm3346

davetrousers wrote: »

How does post-dating a cheque govern when it will arrive in he post?

Posted to arrive early, post-dated to the date payment due?

jimjames

mjm3346 wrote: »

Posted to arrive early, post-dated to the date payment due?

Alternatively use internet or telephone to make sure payment goes on the exact day and no need to allow for postal delays