Are Post Dated Cheques Legal in the Uk

Jim assures the supplier that the cheques will be paid by his bank on those days. On June 4, when the supplier receives Jim`s post-dated cheques, they must not debit, debit or credit the claims. The reason for this is that cheques cannot be converted into cash before the dates indicated on the cheques. Many banks state in their terms and conditions that post-dated checks should not be written, while some include a note on the front of checkbooks stating that post-dated cheques should not be written. The safest practice is therefore not to write post-dated checks at all and to set up a series of standing orders (provided that the recipient is configured to accept automated payments on their account). Or you can date a number of online or mobile banking payments in the future. To define the post-dated cheque, it is a form of cheque that has a future date. This agreement to issue a post-dated check to the recipient (the person or company that receives the payment, also known as the payee) is only made if the drawer wants the recipient to wait before depositing the check. Can I date a cheque afterwards? Our advice is that you should not check after the date as this is likely to violate the terms of your bank account. Different banks have different policies, but the majority of banks advise against the practice of post-dating checks.

Post-dated cheques under Indian law are considered under the Negotiable Instruments Act of 1881. Post-dated checks are common and enforceable. [10] In 1998, the Supreme Court ruled that a post-dated cheque is a bill of exchange and only becomes payable on request on the date indicated on the cheque 3 months Dated cheques are preferable if you may not have enough funds on the day the cheque is issued, but you are sure that the funds will be available on the future date or deadline indicated on the cheque. The validity of a post-dated cheque in India is 3 months from the date indicated on the cheque. In Serbia, post-dating checks are a common practice in the retail trade. Retailers typically accept post-dated monthly cheque payments up to several months in advance, allowing their customers to pay for expensive goods as a kind of interest-free line of credit. Employees are reminded that accepting an unsolicited post-dated cheque (regardless of the date) does not mean that a request for payment has been accepted. Any post-dated cheque or cheque dated less than 28 days will be accepted without prejudice and will not remove any surcharge, penalty, etc. We would only do this if a customer contacted us before the due date to request a payment delay and we accepted that request for discussion and information collection. A post-dated cheque (or post-dated cheque) is a cheque that is written with a future date. In other words, the date displayed on the cheque is later than the date the check mark was written. You need to talk to your bank.

In general, banks do not charge check writers for returning a check that is not paid because it is redatted. If your bank has paid the check and increased your overdraft, you should talk to your bank, although you may find that this does not meet the terms of your account. In the United Kingdom, the legislation is clear; “A cheque is a bill of exchange drawn by a banker that is payable on request.” [16] Under the Bills of Exchange and Banks Act, 1882, Part 10, bills of exchange are payable upon request, and Part 13 states: “A bill of exchange is not valid not only because it is obsolete or redacted.” [17] In the United Kingdom, the post-dating of a cheque has no legal weight, so such a cheque can be cashed before the due date. However, a bank may refuse to cash a cheque if the late date is indicated; Otherwise, the payer is not entitled to legal action against the bank for the processing of the check. [18] [19] For example, a Canadian bank cannot process a post-dated cheque before that date, and if it does, it will be treated as an error and the bank will have to correct the transaction. In the United States and the United Kingdom, post-dated cheques can be drawn at any time and the date mentioned has no value, while in India and Australia, post-dated cheques cannot be paid until the date indicated on the cheque is respected. It simply means that the payer is obliged to make the payment, but only at a later date. Post-dating only makes sense if the payer is sure that the payee will not cash the check before the date indicated on the check or deposit it at the bank. The main intention of this cheque remains a deliberate delay in payment. Some banks advise customers at the beginning of their checkbooks not to write post-dated checks, while many indicate in the terms of the bank account that post-dated checks should not be written, however, as this is a competitive issue, the banks themselves decide how best to communicate with their customers. Many state in their terms and conditions that post-dated checks should not be written, while some include a note on the front of checkbooks stating that post-dated checks should not be written.

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