Sunday, December 4, 2011

Is it legal to charge a service chg on post dated checks?

My insurance company is demanding post dated checks over a period of two months is it legal to charge a service charge for this service? Morally I would think No it's not right, but no a days no one seems to have much morals.|||'RetiredDebtFree' has covered this pretty well....post dating checks serves NO purpose, the holder of the check can present it for payment immediately and if you post-date because you don't have the funds that is illegal, it is called "check kiting".....





what service charges are charged by the insurance company is a policy matter for the most part but there are some regulations in place so your state's insurance commissioner or department of insurance could answer that question for you........|||I don't think it's ethical to even ask you to give them post-dated checks. It makes no sense for them to demand post-dated check then ask you to pay a fee to hand them over. Look for a new insurance company, and call your state Insurance Commission and report the company.





The company can still deposit your checks, as banks will not refuse checks that are post-dated unless the bank has been previously notified (there's a fee to watch for the check). So many transactions are electronic that the date is not always checked, and post-dating is really not acceptable. Doing so can be considered a check fraud if you write the checks and don't have ALL the funds to cover all of the checks in your account.

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