Is postdating a check illegal in colorado

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The writer is waiting for money to be deposited or for another check to clear before the payee will be able to cash without overdrawing the writer’s account.If this happens, there’s usually a few fees that are levied, such as an insufficient funds or overdraft fee (and sometimes both), and on the payee’s end, there may be a bounced check fee.They can try to cash the check whenever they please.You should clear it with your bank and your payee before writing a postdated check — check your state’s laws and your bank or credit union’s policy before writing a postdated check.First, let’s look at why you would want to postdate a check.Most of the traditional reasons you would want to write a postdated check are a bit out of date; it may be easier to simply use direct deposit, electronic transfers, or coordinate directly with the payee.The biggest reason for postdating today is that you do not have the funds in your checking account to cover payment, but you will after the postdate.

For example, if it’s January 28, and you have rent due, you might postdate a check for February 1.Many bigger banks, however, will honor postdates as part of banking agreements. When it comes down to it, postdating a check can be risky.You need to trust the payee to not cash it until the postdate, or that the bank they use will honor the date if the check is deposited.It’s best to talk to the payee beforehand and work out an agreement.Find out if they would, instead, simply be willing to accept payment later.

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