Is it legal for a client to pay us with a post-dated check that arrived three days before the date on it? We deposited the check unknowingly, and it did not clear.
It is not illegal in any state to issue a post-dated check. However, doing so is risky, since a bank is allowed to knowingly pay a post-dated check unless its customer contacts the banks and specifically asks that it not be paid early.
In this case, the check may have bounced because of the account balance, rather than the date. It's possible that the remitter has now deposited funds to cover the check. Try contacting the bank the check is drawn on to find out if there are sufficient funds available now to pay the check. If there are, go ahead and redeposit it. If not, contact your client.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
It is not illegal in any state to issue a post-dated check. However, doing so is risky, since a bank is allowed to knowingly pay a post-dated check unless its customer contacts the banks and specifically asks that it not be paid early.