Legal Question in Business Law in Indiana

Post- Dated Checks

Why shouldn't a bank be liable for damages when it cashes a post-dated check? Is this fair? What are the reasons behind this policy?

Asked on 11/06/07, 12:07 pm

1 Answer from Attorneys

C. David DuMond Law Offices of David DuMond

Re: Post- Dated Checks

Banks are specifically authorized by the Check 21 and other federal laws enacted by the Republican Congress to negotiate checks, even if post-dated, unless the issuer (you, let us suppose) specifically advises the bank ahead of time that the check is post-dated. The rationale is simple: it makes life easy for the banks. Now they can speedily process the checks without looking at dates, and they can generate more NSF fees. You might be able to forestall any NSF fees by complaining to the bank within a short time after your bank statement comes announcing the NSF fees, and claiming it was fraud on the part of the payee to put the checks through so soon. Good luck.

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Answered on 11/06/07, 2:23 pm

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