Postdating a check is it legal

Posted by / 08-Aug-2017 03:57

Postdating a check is it legal

It has long been illegal to “float” or post-date a check by writing it in an amount exceeding your current bank balance, even if you expected a pending deposit to cover it by the time it reached the bank.

However, check processing practices have been changing in recent years and, since October 2004, your payment check will now clear the bank even faster—due to a federal law known as “Check 21,” the Check Clearing for the 21st Century Act.

(d) Employing or retaining an attorney to collect a claim.

A licensee may exercise authority on behalf of a creditor to employ the service of an attorney if the creditor has specifically authorized the collection agency in writing to do so and the licensee's course of conduct is at all times consistent with a true relationship of attorney and client between the attorney and the creditor.

However, I think it is unlikely he would suffer any damages by its early payment.

Typical losses would be dishonor of subsequent items. Texas\'s Uniform Commercial Code (UCC) is contained in the Business & Commerce Code.

(f) Soliciting, purchasing, or receiving an assignment of a claim for the sole purpose of instituting an action on the claim in a court.

Note that Check 21 does directly address how quickly a bank must make funds you deposit by check available to you, although federal law already places a maximum time limit on clearance of deposited checks.

(c) Sharing quarters or office space, or having a common waiting room with a practicing attorney or a lender.

As a convenience, some financial institutions also provide check images with your statement or on their website that may not meet all the legal requirements for substitute checks.

Incidentally, it is legal for your bank to destroy the actual checks you write, which they may do right away or after a period of time.

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This new law increases efficiency by making it easier for banks to transfer an image of your check electronically instead of physically transferring the paper check (this is known as check require) your bank to create a “substitute check” on paper from the image, for situations where a paper check is needed as proof of payment or the receiving bank does not accept electronic checks.