In which case, the CFPB says the institution may may be on the hook to cover damages such as the cost of overdrafts and other fees.
Consumer advocates who spoke with Consumerist say that while there are several reasons someone might think it’s a good idea to use a postdated check, it’s not generally recommended.
The two major issues before the courts are: 1) Post-dated cheques that are stopped by the bank or issuer, causing problems for whoever is to be paid by the cheque for goods or services provided and; 2) the reverse, in which a person is promised goods or services but does not receive them and has to stop the cheque.
In the UK the legislation is clear; 'A cheque is a bill of exchange drawn on a banker payable on demand'.
In the United States, national banks are permitted to pay checks even though payment occurs prior to the date of the check.
According to the Comptroller of the Currency: "A check is a negotiable instrument—the payee, the person to whom the check is written, may negotiate it through the banking system at any time" and check writers seeking redress must restrict themselves to pursuing the payee.
(4) A cheque is not incomplete or irregular on its face by reason only that it is post-dated (whether or not the date has arrived).But if the consumer gives notice to the bank, the institution must only wait 14 days before processing the note – even if that happens to be before the date on the check.