Post dating cheques illegal

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? However, if you postdate a check and have no intentions of actually paying a person or entity the amount owed, you are committing a crime. In all 50 states, it is illegal to defraud an entity or individual by paying for services or goods when you know that there are inadequate funds available in your account.

Can I deposit or cash a post-dated cheque? Is post-dating a cheque illegal? Advertisement What is a post-dated cheque? A post-dated cheque is a cheque issued with a written date in the future or dated after the date of issue. Section 13 2 of Bills of Exchange Act Act A bill is not invalid by reason only that it is ante-dated or post-dated

A postdated check suggests control. For example, assume that today is Jan. Two potential reasons for this include:. In most cases, you can deposit or cash a postdated check at any time.

In banking, a post-dated cheque is a cheque written by the drawer payer [1] 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. In the United States and the UK , post-dated cheques are negotiable instruments and can be drawn upon at any time, while in India and Australia post-dated cheques are not payable until the date written on the cheque.