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Q:
Can a creditor cash a postdated check?

A friend of mine was asked by a creditor to send six or seven posted dated checks. Her question is, can they cash the checks before the date on the checks? She is very concerned that they are allowed to cash them before the date specified. Thanks for your help. - Vicki

Dear Vicki,

Your friend should tell that creditor to forget it. Although the Fair Debt Collection Practices Act prohibits creditors from depositing a post-dated check before the check’s date, there are still risks involved.

For starters, it puts someone else in control of your money. For example, if you do not have the money in the bank when the creditor decides to cash the check, you will be assessed a “non-sufficient funds” charge by their bank. Besides, having a bunch of uncashed checks floating around sounds like an invitation to fraud if you ask me.

Tell your friend the best thing to do is to pay her bills on time and as agreed.

Hope this helps, 

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