Is post dating cheques illegal

What Does It Mean to Postdate a Check?
Contents:
  1. Is it illegal to post-date a check?
  2. Post-dated cheque
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  4. Postdating Checks Is a Waste of Time — Here's Why
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So why didn't we all rush in to buy shares at bargain prices? Because we worried that prices would drop still further. Your quote about high returns following global crises was just one of many similar messages.


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Within days of September 11, we saw graphs showing that the sharemarket rose fast in the year following most other crises. And I'm sure we will all wonder the same thing next time something extraordinarily bad happens. As for a "five-year cycle more or less", there's so much "more or less" in any share- market cycle that it's useless in helping you try to time your purchases.

I agree with you that investing at a time that turns out to be near a market peak is really discouraging. It's all too easy, if you're in and out of markets as you suggest, to miss out on a sudden bull run. For all we know, world markets might zoom up, starting Monday. They might also plummet. Heaps of research shows that those who get in and out of shares end up worse off than those who go into the market and stay. By far the best strategy is to spread out your purchases, buying regularly once a month or every three or six months, regardless of what the markets are doing.

If you invest the same amount each time, you benefit from what's called dollar cost averaging.

Is it illegal to post-date a check?

The price fluctuations are rather extreme, but that's just to make it easy to follow. Over four months at that price, you get units. Over four months at that price, you get 48 units. Over four months at that price, you get 30 units. Over the year, you've bought a total of units. Without even thinking about it, you've bought more units when they were cheap, and fewer when they were expensive. This works well for regular saving. But what if you've just got a lump sum, perhaps from an inheritance or redundancy money?

Because you won't know, until later, whether now is a good or bad time to buy, it's best to spread out your purchases of shares or share fund units.

Post-dated cheque

Set yourself a plan and stick to it. You might invest a 12th of the money each month for a year, or a quarter every six months for two years. In the meantime, the rest can go into term deposits that mature when you plan to invest them. The same applies if you're getting out of any volatile investment because you plan to spend the money over the next few years.

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That way, you won't sell everything when prices happen to be particularly low. There has been rather a lot of maths in this week's column.


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Log in or Sign up. Post dating cheque - illegal Discussion in ' Banking, credit cards, etc ' started by Moribund , 21 Jun I recently post dated a cheque for September but it was cashed two days ago putting me into an overdrawn situation. I rang my bank and they informed me that Post dating cheques is illegal. This was the first I was made aware of this.

Postdating Checks Is a Waste of Time — Here's Why

Is this common knowledge? Oh no, thats's news to me! I have done it many times, but the companies didn't cash it until the date on the cheque. I may be wrong, but I would imagine that it was an error by the bank that accepted the cheque because they did not check the date on it. If the date does not matter, why put it on the cheque in the first place?!? Never heard this - we receive post dated cheques from time to time - if I thought it was illegal I would have no hesitation in smugly informing those concerned.

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Doesn't Revenue require post dated cheques in certain circumstances e. Luckily, I avoided overdraft fees, but this situation was still quite worrying. What if the check had bounced? What if this created an overdraft and I had to pay expensive fees? Once you sign a check, it can legally be cashed — regardless of the date you wrote on it — by the payee. There is a way to prevent the payee from cashing the check before the date: If you find it necessary to write a postdated check, and you provide your bank with reasonable notice not to cash your postdated check, then the bank may not legally cash it.

There are some caveats to this, which depend on the manner in which you provide notice to your bank, according to the Consumer Financial Protection Bureau CFPB:.

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So what happens if the bank cashes your check despite your reasonable notice? Well, the bank may then be liable to you for damages, like overdraft fees, for instance. According to this eHow.

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If you do accept it, you should check with your bank to see if they can process the check before the date on the check. If the person who wrote the check has provided reasonable notice of postdating to their bank, however, you will not be able to cash the check early. By providing notice to your bank or just not writing a check until you can afford to, you can avoid fees and protect your money. It depends on the local laws, but they may have the right to cash the check as soon as they get it.

I wrote a post dated check to our friendly or used to be friendly neighborhood store, they promised me they would hold it until the date I put on the check, unfortunately they cashed it 2 days before the date on the check.