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Post dated checks

Discussion in 'Business Operations' started by mtdman, Oct 28, 2004.

  1. mtdman

    mtdman LawnSite Gold Member
    Messages: 3,139

    So I was thinking about sending a reminder about this check 21 law to my customers this month with the bills, reminding them of my returned check policy, etc. Personally, I don't wanna charge those fees, I just wanna get paid on time, and I don't mind working with customers to avoid those fees. I started wondering about policies on post dated checks, allowing customers to post date them to avoid fees, etc, but get the checks sent in on time. But I don't want to open that can of worms and start problems there. Anyone have thoughts?
     
  2. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Messages: 2,955

    i would remind them and send then info about the law 2
     
  3. tonygreek

    tonygreek LawnSite Gold Member
    Messages: 3,730

    i wouldn't even think of setting a positive policy on accepting post-dated checks. you are right, it would just lead to another set of problems.

    my own policy is that we don't accept post-dated checks for any of our business.

    tony
     
  4. Turf Medic

    Turf Medic LawnSite Bronze Member
    Messages: 1,073

    You might want to check with your county attorney before putting a delayed check policy into effect. In Nebraska if a person writes you a bad check you can take it to the county attorney and they will prosecute the person. However if it is a post dated check it then becomes a promissory note and they will not help at all, you then have to go to civil court on your own dime. You will have to sign a paper under penalty of perjury that it was not accepted as a post dated check.
     
  5. Soupy

    Soupy LawnSite Gold Member
    Messages: 3,125

    My bank told me that the date on a check doesn't meen nothing. She told me to never post date a check to someone because they could actually try to cash it early. Most wouldn't try to cash it though.
     
  6. HOOLIE

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    I have one customer that occasionally post-date checks. I've always "early-deposited" them, nobody at the bank has ever noticed, and they've always cleared OK. Just recently, another customer mixed up my bill with her bill from Banana Republic. I called her to tell her of the mix-up, and she called back and said my check had been cashed, by Banana Republic. I don't think the people at the bank even look at things anymore.

    I heard on the news tonight that even though the Check 21 law is now in effect, a lot of banks are not going to institute it until January. A grace period for floaters.
     

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