Money Matters Toronto

Beware The Post Dated Cheque

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!

Who am I?

My name is Arnold Molder.
I am the passionate, value providing mortgage consultant
and inspired founder of The Mortgage Centre - Tridac
Corporation Limited.

For 30 amazing years I have without fail made readily
available my forward-thinking mortgage advice for
homeowners who choose to use their mortgage as
an asset rather than liability.

My dedicated team of two detail oriented customer care
coordinators and two licensed mortgage consultants work out of
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