Gemma Smith of the Association of Payment and Clearing Services (Apacs) told the programme that the clearing service technology is not date sensitive. post-date something to write a date on a cheque that is later than the actual date so that the cheque cannot be cashed (= exchanged for money) until that date. In the Cheque States cheques the UK , post-dated cheques are negotiable instruments and can be drawn upon at any time, while dating India and Australia post-dated cheques are not payable until the post-dated written on the cheque. Banking rules do not forbid the writing of post-dated cheques, but they don't encourage them. It had already sent you a cheque for £25 to cover the £22 charge for being overdrawn. A post-dated check (or post-dated cheque) is a check written with a future date. If someone you’ve paid asks you for another cheque, saying they’ve lost the original or that it’s gone out of date – ask your bank to stop the previous cheque first. Post-dated cheques can bounce and one suspects that any post-dated cheque that was given to the Brits would be given by presidents and prime ministers in office now. with the post dated cheque amount do you reduce the customer outstanding balance? I'm aware that he may cash all the cheques ... or may not. Historically, if someone wanted to phase their payments, such as for paying into an insurance policy, they issued a series of post-dated cheques to the recipient. The programme also contacted a number of other banks including HSBC, HBOS, Barclays and Nationwide who all confirmed that they do not accept post-dated cheques. Post-dated cheques are not a reliable or trustworthy hassle-free method of managing bank account cash inflows and outflows. I gave a post dated cheque to a company and they presented it before the date!! So yes, if you write a cheque dated now for three weeks from now that IS a post dated cheque and your card company doesn't want it. Post-dated cheque is a negotiable instrument which is written by the payer for a specific future date before which the drawee cannot produce the same in the bank to get the desired amount and whether the post-dated cheque may be cashed or can get deposited before the mentioned date, it solely depends on the country to country. Unfortunately the recipient cashed both cheques at once and Stephen became overdrawn. Post-dated cheques will not usually be honoured by a bank, but is it illegal to issue a post-dated cheque? However the cheque would be evidence of the debt in the event of a dispute. Unfortunately the recipient cashed both cheques at once and Stephen became overdrawn. Owing to the number of cheques received it does not have a process in place that identifies postdated cheques. He contacted his bank, the Halifax, to ask it why it had paid the money out, and he was told the bank did not honour post-dated cheques. A post-dated cheque (PDC) means the Cheque cannot be cashed until that day i.e. Customer Ledger with Cheque Register. Post dating cheques uk. You will need to speak to your bank. BBC Radio 4's Money Box was broadcast on Saturday, 6 March, 2004 at 1204 GMT. for example, if you received post dated check from customer today what you will do with the entry?. However these days businesses can set up a series of automated payments through their bank branch or through their phone or online banking service, specifying the dates when they want specific payments to be made, thus retaining control of their cash-flow. Payment statistics, market research, FAQs, advice, news and newsletters, events, projects, social media, press releases. The habit of post-dating cheques goes back to when the only means of payment was by cheque or cash; i.e. It is quite common for tenants to lodge a bunch of post dated cheques and for the landlord or managing agent to present them as they dates roll by as an alternative to prepayment of a quarter's rent. A post-dated cheque does not count as settlement of a debt, and the other party is not legally obligated to accept it at all - in other words, simply giving someone a post-dated cheque doesn't meant that you've paid them. But do not put pen to paper in that cheque book unless you trust the person completely. Ask Your Own UK Law Question It was dated for the 18th of this month, however, it has left my account today, meaning that they presented the cheque some time last week! Download or subscribe to this programme's podcast, A cheque is a bill of exchange payable on demand, The BBC is not responsible for the content of external internet sites. I have placed a stop on the cheque and they money will come back into the account, (I told the company that they cheque had to be presented on 18th June as that was when I … Different banks have different policies, but the majority of banks discourage the practice of post-dating cheques. If the payer’s account is closed, the paying bank would not be obliged to honour the cheque and you would need to ask for payment by another means. He contacted his bank, the Halifax, to ask it why it had paid the money out, and he was told the bank did not honour post-dated cheques. Therefore if it is post-dated, it is not payable on demand, so is not technically a cheque. before the advent of automated payments such as Direct Debits and standing orders. According to William Hedley in Bills of Exchange and Bankers, "the document is an ordinary bill of exchange payable at a future time and therefore can be endorsed or negotiated in the usual way.". Cheques become stale after three months from the issuing date. Ms Smith advised that if this does happen to you, you should call your bank, explain the situation and hopefully they will deal with you sympathetically. Or you can future date a series of online or mobile banking payments. Has the law changed recently so that I am not allowed to post-date a cheque? London E1W 1YN In the past, before Direct Credits and online banking became available, if a business wanted to phase their payments the accepted way of doing this was to issue the person you wanted to pay with a series of post-dated cheques. Our landlady for next year has requested that we pay for rent by giving her three post dated cheques this summer, each dated for the 3 dates we get our student loan instalments. Tel: 020 3217 8200questions@chequeandcredit.co.uk, Copyright: Cheque & Credit Clearing Company 2016-2021, How Cheques Clear – Advice for Businesses, Cheque Printer Accreditation Scheme (CPAS), How to become an Accredited Cheque Printer, Best Practice Guidelines for Bank Giro Credits, How to become Certified to Print Bank Giro Credits, Protecting bank customers from cheque fraud, 21st Century - a new payments landscape in history. If the bank does not spot that the cheque has been post-dated the cheque would be paid before you intended it to or even returned unpaid if you have insufficient funds in your account – potentially incurring charges for you. The greatest danger lies in the banker paying a post-dated cheque and subsequently dishonouring another cheque which ought to have been paid but had to be returned due to lack of funds. The check is post dated to May 15. A post dated cheque is any cheque that you give a later date to the date you are writing it on. 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