You may have a claim against the debt collector for violating federal law.
But your options for claims against the bank or a creditor that cashed a check early are more limited.
If the bank releases the funds even after you’ve instructed it not to, the bank may then be liable to you for damages that are caused by honoring the post-dated check.
Read on to learn about the law, and what steps to take so this doesn’t happen to you.
(To learn more about laws that apply to debt collectors, see our Debt Collection Agencies area.) The bank can cash your postdated check at any time, even before its authorized date, unless you specifically instruct it otherwise.
You are more likely to have a claim against a debt collector that cashes your post-dated check early.
Federal law restricts what a debt collector can and cannot do with your postdated check.
You should do it as soon as possible to allow the bank time to process the instructions.
You should also describe the check to the bank with “reasonable certainty.” In other words, provide the check number, date, amount, and name of payee.
This means that you don’t have a claim against your bank unless you notified it not to release the funds.
In order to instruct the bank not to issue the funds early, both state and federal banking laws require that you give the bank “reasonable notice of the postdating.” Federal lawdoes not provide a minimum time period within which you notify the bank.
Debt collectors and creditors routinely pressure consumers into issuing post-dated checks, usually over the telephone.