Is postdating a check illegal in michigan
If a bank does pay a postdated check before the check’s date even though it has received proper notice from the customer, the bank is liable to the customer for any loss resulting from the bank prematurely paying the check. §§ 11-4-401, 11-4-403) West Virginia law contains several prohibitions addressing early payment of postdated checks.In other words, a customer who has properly notified the bank of the postdated check can sue the bank for cashing the customer’s postdated check before the postdate if the bank’s action causes the customer loss, such as causing other checks to bounce. The West Virginia Code prohibits a person from requesting or accepting a postdated check while intending to deposit or cash it before the date written on the check.Under the federal Truth in Lending Act, the cost of loans must be disclosed as both a finance charge (in this case the fee) and as an annual percentage rate (APR), the standard cost of credit to the borrower on an annual basis.In a payday loan, both the lender and the borrower know that sufficient funds to cover the check are not available when the check is tendered.Curious as to what happens when I defy the concept of post-dating, I checked with banks to their rules on the matter. However, I do expect to have those funds by the date written on the check.When you post-date a check, you put a future date on the check with the idea that the recipient does not deposit it until that written date. So, I post-date the check so that the check recipient knows not to deposit that check until that date.Payday loans have proved very controversial due to the high interest rates charged, collection practices by some lenders, and disputes over compliance with credit laws.These loans sanction the writing of bad checks and entice consumers into relying on very expensive debt to live beyond their means.
In most states statutory provisions provide that it is prima facie evidence of insufficient funds (or of intent to defraud) if: (a) the check was not paid by the drawee (bank) on presentation for payment and (b) the drawer did not pay the check within a specified number of days after written notice to the drawer of dishonor of the check.
Both state and federal law contain provisions that address the cashing or depositing of postdated checks before the date appearing on the check.