What is the law on stale-dated checks?

What is the law on stale-dated checks?

Cheques are considered stale-dated after six months, unless it is a certified cheque. A stale-dated cheque means that the item is old, and not necessarily invalid. Financial institutions may still honour these items, but there is no obligation to do so.

How long can checks be uncashed?

Although banks can refuse to process checks that are over six months after the date on the check, rarely do the processors look at the date on the check. Therefore, your check potentially could be cashed at any time.

Can you dispute a stale-dated check?

While a stale-dated check is not necessarily invalid, banks may deem it an “irregular” bill of exchange and refuse to honor it. At this point, the only way to process the payment is if the drawer — otherwise known as the check writer or issuer — changes the date on a replacement check or issues a new check.

What happens if a cashiers check is never cashed?

If the recipient never cashed the check, the money continues to be the bank’s, just as if you had written s normal check that didn’t get cashed the money would sit in your account.

How long do you have to return a stale dated check?

What types of checks can ‘go stale’? The six-month time frame generally applies to personal and business checks — including payroll checks. But that time can vary for other types of checks. Checks from the U.S. Treasury (a federal tax refund, for example) are good for 12 months after the date they’re issued.

Who is responsible for a stale dated check?

While a bank may no longer accept a check dated more than six months ago, the person who wrote the check is still liable to you for the debt or obligation that they wrote the check for.

What happens if you don’t cash your tax refund?

Income tax refund checks issued by the U.S. Treasury Department become void if not cashed within one year of the issue date. The Internal Revenue Service has procedures in place to reissue refund checks which have expired due to age, or which have been lost or destroyed before being cashed.