What happens if someone tries to cash a postdated check

Additionally, the only time a bank can be held liable for processing a postdated check before the indicated date is if that notice is still valid.

In which case, the CFPB says the institution may may be on the hook to cover damages such as the cost of overdrafts and other fees. Pamela Banks, senior policy counsel for our colleges at Consumers Union, tells Consumerist that sending a postdated check can be an indicator to the recipient that the check-writer is in dire financial straits.

She says that many people who end up falling into predatory lending traps like payday loans have also used postdated checks to try to stave off debt collectors.

Instead, consumers could seek alternative measures such as a small-dollar loans from a credit union or community bank, inquire about a pay advance from their employer or work out a payment plan with the company or individual they are paying.

In addition to understanding the risks and potential issues with providing a postdated check as payment, consumers should be cognizant that it is illegal to intentionally write a bad check. Still, she tells Consumerist that the bank in question agreed to remove the overcharge fees incurred as a result of the situation.

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Displaying information for [ change ]. Meet the Editors. Is it illegal to post-date a check? This article discusses general laws about checks, postdating, and fraud. Proving Criminal Intent How can a prosecutor win a guilty verdict if the prosecutor must prove that the defendant had the intent to defraud the recipient of the postdated check? For example, under Georgia's deposit account fraud statute, the defendant is presumed to have written the check with the knowledge it would bounce if: the defendant did not have an account with the bank that the check was drawn on at the time the check was written within 30 days of receiving the check, the recipient presented the check for cash or deposit but the bank did not honor the check because of insufficient funds, and the defendant failed to make good on the check within 10 days of receiving written notice that the check had bounced, or notice mailed by certified or registered mail or statutory overnight delivery is returned to the sender as undeliverable and the notice was mailed to the address on the check within 90 days of being dishonored by the bank.

Criminal Penalties Punishment for committing check fraud , including fraud committed with a postdated check, can vary from state to state, but the laws typically authorize fines, probation, and even imprisonment. In addition to criminal penalties, state laws authorize civil fines for writing bad checks. Talk to a Lawyer Start here to find criminal defense lawyers near you.

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