- Bankruptcy and Bankruptcy Code
- Business Entities
- Departmental Operations
- Credit Practices
- Fair Debt Collection Practices Act
- Financial Analysis
- Financing Methods
- International Credit and Collections
- Laws and Regulations
- Payment Methods
- Alternative Dispute Resolution
- Alternative Dispute Resolution
- Pre-Judgment Attachments
- Automated Clearing House System
- Barter; and Barter as a Method to Pay for Goods and Services
- Post-Dated Checks
- Checks By Fax
- Using Collateral to Secure Accounts Receivable.
- Credit Card Payments
- Deferred Payment Letters of Credit and Drafts
- The Federal District Court System, and the U.S. Bankruptcy Courts
- Electronic Funds Transfers & Wire Transfers
- Escrow; Escrow Agreement
- To Execute
- Security Instruments
- Career Management, and Job Change
- Credit Website Tools
- Upcoming Events
- Credit and Collections Tools and Tips
- Tips on Creating Better Emails
- Generating Effective Correspondence
- New Years Resolutions
- Buy America Act
- Creating a World Class Credit Organization
This essay is published for informational purposes only. It is not legal advice, nor is it intended as a substitute for the advice of your attorney.
A post-dated check is one that is given a future maturity date. A seller can request a post-dated check from a customer after agreeing that the check will be held until its future maturity date. Holders of a post-dated check are not usually protected by State bad check laws if the check does not clear when it is deposited as agreed at a specific point in the future.
There is nothing illegal, inappropriate, unlawful, unethical, unprofessional, or unconscionable about asking a marginal customer to issue a post dated check. There is no reason that a customer cannot issue one or a series of post dated checks to a creditor company. From a trade creditor's perspective, there are several advantages to taking post dated checks in settlement of an account balance including these:
- The fact that the creditor company is holding a check that will be presented to the bank for payment on a certain date places a burden on the debtor to have funds on deposit when the check is presented,
- If the check is deposited and dishonored due to Insufficient Funds and the debtor ultimately is sued by the creditor for payment, the existence of the check makes it hard for the debtor to argue that they do not owe the money for whatever reason,
- Even if a post-dated check is not honored when it is first deposited and presented, there is always the possibility that the check will clear the second time through. Alternative, the creditor can tender the check to the debtor's bank on a collection basis which may also result in payment.
Collect Services: Check collect (collection) services are businesses that specialize in collecting returned checks. Most full-service collection agencies and collection attorneys offer check collection services. Some examples are Check Investigative Service, CMA Business Credit Services, National Check Recovery, and NSF Recovery Systems. In addition, some local government agencies offer collection services for retailers. For example, many counties in California offer merchants the opportunity to present dishonored checks to a "District Attorneys' Check Restitution Program."
Check By Fax Services: Check by fax services are businesses that offer software and software support so that creditors may receive checks from their customers by fax, e-mail, or phone. Some examples are Checks by Fax, Draft-O-Matic, CheckMAN, and SoftQuest Office.
See also: Checks by Fax
Edited by Michael C. Dennis.