I opened a certificate of depositaccount with a bank. The CD was post-dated by five business days. I asked why, and they told me that the check I presented was non-local and would take five business days to collect. Is this practice against the law? I have not encountered this before.
Whether or not there is any law that would prevent such a transaction, is unknown. Most banks would open the CD with a current date and simply cancel it out if the check to open it bounced, but there is nothing technically wrong with this novel approach.
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Whether or not there is any law that would prevent such a transaction, is unknown. Most banks would open the CD with a current date and simply cancel it out if the check to open it bounced, but there is nothing technically wrong with this novel approach.
