Laws against post dating checks

03 Apr

But if the consumer gives notice to the bank, the institution must only wait 14 days before processing the note – even if that happens to be before the date on the check.

Of course, even this preventative measure isn’t foolproof, as rules governing banks vary from state to state depending on the two types of notification given, the CFPB says.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.Consumer advocates who spoke with Consumerist say that while there are several reasons someone might think it’s a good idea to use a postdated check, it’s not generally recommended.Without this information, the bank may either reject or "bounce" the check or cash it.If the bank receives notice in time and still cashes the check, it may be liable for loss or damages, including costs if other items are dishonored because of insufficient funds.