Banks set their own policies and can decide at their discretion whether to process an old check. The exact due diligence requirements vary by state, but the National Association of Unclaimed Property recommends a formal letter to the check recipient sent by first-class mail. Banks will not do so because of the accounting ramifications it can have. A lawyer can help you understand your rights and what actions you can take to protect yourself.
Cashier’s checks are considered “official checks” that are backed by an issuing bank. Under federal law, a bank is not required to make payment after that point. If you want to cash a check a few months after receiving it, consider giving the check writer or issuer a courtesy call. Let the person or entity know you plan to deposit the check, so they can make sure their account has the funds.
What should I do with a stale-dated check?
We think it’s important for you to understand how we make money. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials. If you have property that falls into any of the above categories, you may need to report it to the State of Arizona. Visit the unclaimed property website and click on the “Holders” tab to report the property for further instruction.
- Allow ample time for the check to reach the intended recipient, especially if you’re sending it by mail.
- A bank will, in good faith, do all it can to stop payment on a check, but a bank will not guarantee that the check will not be processed.
- Deskera is a one-stop solution to handle the payroll of your employees and makes use of cutting edge technology to handle business transactions at the touch of your fingertips.
- The first step to implementing a practical company policy for stale-dated checks is to understand state laws.
- Practically all checking accounts have zero interest, meaning most people only keep just enough in the account to pay the bills.
If the stale check is returned for any reason, then a person’s bank may charge a fee for returning the check to the person. They may then reverse the deposit if the funds were not placed on hold. Before cashing a check after the requested time frame, consider the reason for the payer’s request. It might be the case that they’re living on fixed income and won’t have the funds available after the specified time frame. You may end up getting charged a deposit item return fee if that’s the case. Bankrate follows a strict
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However, even if it seems expired, the bank might still accept it. Treasury (like a federal tax refund) are good for a year from the date they’re issued. State government checks usually stay valid for six months to a year, depending on the state. When a check is stale-dated, the recipient of the check will need to inform the issuer stale dated checks of the check and request that they provide them with a new check for the payment. This includes filling out a new check with the proper information. Of course, depending on the situation, purpose of payment, and circumstances surrounding not processing the check in a timely manner, this may be easier than in other instances.
