I live in Texas and have several pdl's. Is it legal for storefront lenders to have you write post dated checks? Also, is it legal for them to have you write more than one at a time?
Hi there. I don't know if it is illegal for them to have you write postdated checks, but I think it is illegal for them to cash them prior to the date they are written for. Someone will be along to clarify this a little more for you, I'm sure. Did you write them postdated checks in an attempt to work out payment arrangements with them? I've heard of checkngo doing that for someone wishing to make arrangements, but I haven't heard of any other pdl company doing it. It wouldn't surprise me, though. I don't put anything past them.
Most store fronts that I have used in other states have you write a postdated check when you get the money. Then when you come back and pay they write void on the check and return it to you. They have you write a postdated check so if you do not come back and pay they can then cash it to get their money. The one I have used in Florida does write the current date on the check. As to legalities, that is kind of a gray area. You can find places in the law that support both sides.
Me too Cannr. The ones I dealt with in SC had me write the current date on them, but I can see how the area would be gray. I think as long as they do not cash it before the date then they are not breaking the law. But 10 postdated checks??? I think that's ridiculous.
Speaking from the banking side, if they turn in all 10 post dated checks to the bank, the bank will honor them. The only time the bank may not honor is if it is a stale dated check (too old).
At that time, the only recourse one could have is if there is a forbearance agreement between you and the party that you wrote the post dated checks to indicating that they will not be remitted for payment until the specified dates.
Unfortunately the laws are "gray" for post dated checks....
My understanding is that a post-dated check isn't illegal unless its attempted to be cashed prior to its date...you technically aren't responsible for the funds being withdrawn if they deposit the check before the date on the check. But every storefront PDL I have ever used has required me to postdate my check and they have held it until the date on said check. It protects both parties...if I were to date the current date on it, what would prevent them from cashing it (either on purpose or accident?) And you would be held accountable by your bank because the date on the check would be current.
Post dated checks are legal except in MA. If one is issued, the FDCPA states you must give a notice of intent to deposit 3 to 10 days prior to the deposit date. However, this really only pertains to collection agencies. But most will honor the same conditions as a C/A. They can cash them if they wish early - but in most cases there is no reason to do that as it cost them money if things are returned. Just be careful - have them put it in writing that they will not cash them before the due dates.
Posted: Sat Sep 08, 2007 7:06 am Latest Blog Post : Decision
This would still make me very nervous to have all those checks pre written out there...I hate it when they insist we do this stuff... _________________ If you think you can, you can...if you think you can't, your probably right...
I'd also like to point out that post-dated checks can be cashed before the date.
I experienced first hand from this when my dog was ill, and didn't have the money to perform his needed surgery. The vet allowed me write a post-dated check, but cashed it the next day (on accident he says). This caused a great deal of frustration, and my financial institution informed me that checks are tender, regardless of the date.
As far as writing x amount of checks for store front lenders, it's not unheard of. It's actually seems to be more convenient repayment plan when you have more time to pay.
Just make sure the check clears. If a check bounces, and ends up with the state, it can cause a great deal of frustration for you (bounced check laws).
Last edited by Teleport on Sat Sep 08, 2007 8:13 am
Hello. I work for a bank and post dating a check is not binding with most banks. Post dating a check is a verbal agreement between you and whoever the check was written to. I most cases the bank will not return the check based on the date. Most banks are processing with the information across the bottom of the check only. _________________ Register today to encash debtcc points.
I would like to thank everyone for posting this information regarding post-dated checks. This is all news to me! I always thought you couldn't cash the check if it was post-dated. Apparently, I was wrong. Good to know & for others to know. Thanks!
