Post Dated Cheques

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    #16
    Legally, a post-dated cheque is not a cheque at all- as it's not yet due for payment.
    So no Bank ought to clear it earlier than its due date; negligence?
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
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      #17
      And of course since a post-dated cheque is not a cheque it does not have the protections statute affords to cheques.

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        #18
        As an ex-employee of a major high-street bank, I did come across the post-dated cheque problem quite often.
        I was always told in training that all cheques (no matter which bank they come from) are processed in a central cheque clearing house.
        This particular bank's policy was that post-dating a cheque was against their T's & C's and therefore any that went through before their time were still subject to the normal charges if funds were not available, and it was simply the customer's fault.
        I also remember seeing an episode of the 'one show' where two cheques were written by the presenters, each unsigned and deposited by the other. Both these cheques cleared!
        This just shows how little cheques are looked at these days.

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          #19
          A requirement not to post date a cheque is a requirement not to do something that cannot in any event be done since an instrument that is post-dated is not a cheque. What is described as a post-dated cheque is just an ordinary bill of exchange and no bank should pay a bill before its due date.

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            #20
            Having rent payment arrangements in the form of SO's or as a series of post-dated cheques is helpful in maintaining good relations between LL and T.
            Such arrangements greatly increase the likelihood that rent is paid on time and avoid the destructive hassle involved in chasing up rent arrears.
            It is much more difficult for a T to cancel a post-dated cheque than it is to simply "forget" to pay on time.

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              #21
              Originally posted by Tess View Post
              It was common when I was a student and still seems to be- I work in a completely different place now and still see it.
              Student landlords I think see it as a gesture of goodwill as well as a certain amount of security - after all students do not have a job and guarantees are unenforcable unless in a very specific format. It's common for the dates to co-incide with the loan so that the landlord effectively gets 'first dibs' before it is spent elsewhere, and monthly S/Os are seen as more risky because of youth/lack of budgeting skills/can be cancelled with out penalty

              Using installment dates often means students are living in the property for a month or more until the first installment goes through (mid october) which is, i guess, why students are seen as 'high risk high reward'.
              We used to do this however we stopped as it became a bit of a nightmare. Now we just use standing orders or bacs.

              We still get the blame though when a tenant (or guarantor) has a big standing order go through that bounces. "YOU TOOK MONEY OUT OF MY ACCOUNT AND IVE BEEN CHARGED FOR IT!!!!!!!!"... "Erm.... how exactly can we TAKE money?"
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              I see a bright new future, where chickens can cross the road with no fear of having their motives questioned

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