Post dated cheques

[arcon5]

Quick question...

If I write somebody postdated cheques what will happen if they cash them before the date?

I want to write some postdated cheques to a company, for the 15th of this month, next month then May and would rather just send them now rather than having to remember to do it next month ect

 

[KernowQueen]

it depends on your bank but i don't think they actually recognise them as post dated. if they were presented early, they'd still be cashed & you'd be liable for any charges if they were incurred. this is an old article but i can't see why the info would have changed since then.

 

[Toby1968]

I've found it's down to trusting the recipient not banking them until the date, in the past my bank has cashed post-dated cheques and accepted no responsibility - in fact they charged me for bouncing one of the post-dated cheques - claiming that it's not up to them to check the dates!! I did try to argue they hadn't followed my instructions but they chose to ignore that fact.

 

[Andrew @ PLA]

Quick question...

If I write somebody postdated cheques what will happen if they cash them before the date?

I want to write some postdated cheques to a company, for the 15th of this month, next month then May and would rather just send them now rather than having to remember to do it next month ect

Why not just set up a Standing Order via your online bank account?

 

[LicensedToTrade]

The majority of banks don't recognise 'post-dating' of cheques. The date field is there to determine when the cheque was written. If the date in that field is a future date then it is ignored and the cheque will be bankable.

So in summary, in the UK, post-dating cheques will not prevent them from being banked early and should not be a valid form of protection from early use.

Why does this company require post-dated cheques? Couldn't they set up a direct-debit instruction for you to sign?

 

[Toby1968]

...or set up electronic payments in advance.

 

[serasan]

electronic payment are much better - if it is a one off payment, just set up a standing order with one payment.

 

[MyAccountantOnline]

electronic payment are much better - if it is a one off payment, just set up a standing order with one payment.

Quite agree and very often cheaper - cheques are generally more expensive to use in terms of bank charges.

 

[LicensedToTrade]

electronic payment are much better - if it is a one off payment, just set up a standing order with one payment.

From the limited information available it would appear (in my opinion) that the issue isn't around ease of use but rather the recipient of the money requires some security that the money will be paid on set dates. That is why a direct debit instruction would be more suitable.

 

[longleaf1]

Unless the cashier puts it through in error, the bank shouldnt accept it unless the rules have changed since i went to put one in a few years back, the lady told me to come back next month when it was in date.

 

[LicensedToTrade]

Unless the cashier puts it through in error, the bank shouldnt accept it unless the rules have changed since i went to put one in a few years back, the lady told me to come back next month when it was in date.

That's incorrect. An individual cashier may make that mistake, but it would indeed be a mistake. In the UK a cheque is just another form of 'Bill of Exhange' and the system that clears them isn't date sensitive. It looks at the signature, the amount and the security details on the cheque, not the date. So a cheque will either be cleared early if it is banked or it will be refused entirely and a bounce charge will be issued. It may even be against your bank account T&C to post-date cheques.

 

[arcon5]

From the limited information available it would appear (in my opinion) that the issue isn't around ease of use but rather the recipient of the money requires some security that the money will be paid on set dates.

Thats correct. I don't trust the company with a DD mandate tbh.

Its an outstanding debt for some stock I have been disputing for a while now and a reduced price has finally been agreed. And I don't trust the company.


Thanks for all your responses. I'll setup a standing order to them instead and they will just have to live with it.

 

[HFE Signs]

If the bank spot it you'll be ok but the chances are it may well get paid in too early, I'd hold it back so you have control rather than trust them to see it..