0
It is illegal to write a cheque knowing that there are no funds in your account to cover it. The bank will not clear it and will charge you a fee for the service and possibly send you a tersely worded letter explaining the "Conditions of Use" of your cheque account.
The other problem will be finding somebody silly enough to accept a post-dated cheque.
What else can I help you with?
Are postdated cheques illegal in the UK?
No Post Dated Cheques are not ill legal. Gnerally client gives this kind of cheque for some kind of gurantee and assurity.
What law prevents collection agencies from collecting post dated cheques?
The law preventing collection agencies from collecting post dated checks is the Fair Debt Collection Practices Act. You can learn more about this at the Wikipedia.
What is cheque discounting?
Client can take money from bank on the security of post dated cheques issued by their credit worthy customers. The bank in this case is certain that they will get the payment of this cheque on the due date from the customer of the client. Normally the cheques should not be dated for date which is later than 90 days from the date of discounting.
What is current dated cheque?
A current dated cheque is a cheque that is written with a date that is the same as the date it is issued, allowing the recipient to cash or deposit it immediately. Unlike post-dated cheques, which specify a future date for cashing, current dated cheques are valid right away. They typically include the date, the amount, the payee's name, and the signature of the issuer. This type of cheque is commonly used for everyday transactions.
Is it legal to write a post dated check in Pennsylvania?
No. Writing a post dated check in Pennsylvania is perfectly legal as long as the person to whom you give the check does not submit it for cashing before the date you put on your check. For that matter, it is not illegal to write a post dated check in any country
What are the journal entries for post dated cheques issued?
When a post-dated cheque is issued, the company records it as a liability until the date on the cheque. The journal entry to record the issuance of a post-dated cheque involves crediting the bank account (decreasing cash) and debiting a liability account such as "Post-Dated Cheques Payable." On the date the cheque is cashed, the company will reverse the initial entry by debiting "Post-Dated Cheques Payable" and crediting the bank account. This ensures accurate tracking of outstanding liabilities and cash flow.
What is the post dated cheque on a crashing bank?
A post-dated cheque is a cheque written with a future date, indicating that it should not be cashed or deposited until that date. In the context of a crashing bank, a post-dated cheque may not provide any security to the payee if the bank's financial instability leads to its inability to honor the cheque when the date arrives. If the bank collapses, the cheque may become worthless, leaving the payee at risk of losing the funds. Thus, relying on post-dated cheques during such uncertain times can be risky.
Can you write a post-dated check?
Yes. You can write a post dated check. It is perfectly legal as long as the person to whom you gave the check doesnt submit it for cashing before the date you put on the check.
Is it legal in Michigan to write a post dated check?
Yes. Writing a post-date check is perfectly legal anywhere in the world. But, cashing a post dated check is not. A check can be submitted for encashing only on or after the date mentioned on the check has reached. Until the check's date has reached, it is a worthless piece of paper that has no value.
What are the laws regarding post dated checks?
In the United States, post-dated checks are generally legal, but banks are not required to honor them. If a post-dated check is deposited before the date written on it, the bank may process it unless the account holder has provided the bank with written notice not to do so. It is recommended to communicate with the payee and your bank to ensure the check is deposited on the intended date.
How did people pay for things on eBay in 1995?
They sent their cheques in the post to the seller.
What are cheques that are dated for payment sometime in the future?
They are called Post Dated Cheques. Lets say today is 1st Jan 2012 and I need to repay you Rs. 5000 that I borrowed from you last year in April of 2012. I can give you a checque for Rs. 5000/- with date as 2nd April 2012 and give it to you. Until the 2nd of April 2012, the cheque is worthless. But, you can deposit it into your bank account on or after the 2nd of April 2012 and you will get the money (If my account has the equal amount balance)
