I had an experience this week with my bank that I wanted to share with you.
You understand what a post dated cheque is right? A post-dated cheque is not eligible for clearing and therefore should not be deposited before the due date. But what happens if you write a cheque and the recipient deposits before the clearing date?
Well according to my experience this week nothing. The depositor gets their funds and thats the end of the story. The bank accepts no responsibility and are very reluctant to reverse the funds. No big deal unless the early deposit makes your other obligations bounce and your account becomes overdrawn... now who is going to pay for the NSF fees? And compensate for the time spent talking to creditors? Not to mention damage to reputation for something that isn't your fault.
So the next time somebody asks you for a post dated cheque beware.
Here is a link to the Canadian Payments Association website. Everything you ever wanted know about cheques!
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