American Bank Acounts

[CanadaGirl 0]

Hi Guys,

Ok I am very frustrated right now and really just need some support.

I came from Canada and my banking was so simple there. I didn't have overdraft for starters. If the money wasn't in my account then the transaction just didn't go through. They didn't "Borrow" money from another account and charge me $10 for this "service". I learned this lesson this summer when I was using my bank card thinking I had money but really it was just charging me $10 for each time it overdrafted.

That overdraft lesson cost me $30 and it was a quick lesson!!

Well......today I learned a new lesson. You can't post date checks here!!! Once again, in Canada I would write checks for rent, etc with Dec.1 in the date line and give them the check on Nov. 28th. The checks could not be cashed until Dec. 1st.

So I sent a check to my parents that had Dec. 2nd on it because I didn't get paid till today. Little did I know, my dad cashed the check with no problem on Nov. 27th. I have since been using my card thinking I had about $200 in my account for the past 4 days. I now have over $120 in overdraft protection charges because my account was in the negative. I called the bank to tell them that check shouldn't have been cashed till Dec. 2nd and they told me it's illegal to post date checks! That's right ILLEGAL.

I have lost over $150 in overdraft charges this year because I didn't know the "rules of banking" in America. I flat out told the bank that this was never written and I never signed anything that said I couldn't post date checks. Apparently it's just common knowledge. Sometimes I get so frustrated with this country I just want to go home. Can't they give us new people some breaks???

Has anyone done this or made so many costly mistakes? I feel sooooo dumb and of course my husband is furious with me because "I should have known"

Sorry this was so long but thanks for your comments.

[Dr_LHA 3]

Canadian banking is weird, in other words.

Post dated checks to me always seemed like more of a personal thing, i.e. if someone gives you a post dated check, you don't cash it until that date.

As for overdrafts, this is all perfectly normal to me, being used to UK banking for example.

[payxibka 10,045]

Hi Guys,

Ok I am very frustrated right now and really just need some support.

I came from Canada and my banking was so simple there. I didn't have overdraft for starters. If the money wasn't in my account then the transaction just didn't go through. They didn't "Borrow" money from another account and charge me $10 for this "service". I learned this lesson this summer when I was using my bank card thinking I had money but really it was just charging me $10 for each time it overdrafted.

That overdraft lesson cost me $30 and it was a quick lesson!!

Well......today I learned a new lesson. You can't post date checks here!!! Once again, in Canada I would write checks for rent, etc with Dec.1 in the date line and give them the check on Nov. 28th. The checks could not be cashed until Dec. 1st.

So I sent a check to my parents that had Dec. 2nd on it because I didn't get paid till today. Little did I know, my dad cashed the check with no problem on Nov. 27th. I have since been using my card thinking I had about $200 in my account for the past 4 days. I now have over $120 in overdraft protection charges because my account was in the negative. I called the bank to tell them that check shouldn't have been cashed till Dec. 2nd and they told me it's illegal to post date checks! That's right ILLEGAL.

I have lost over $150 in overdraft charges this year because I didn't know the "rules of banking" in America. I flat out told the bank that this was never written and I never signed anything that said I couldn't post date checks. Apparently it's just common knowledge. Sometimes I get so frustrated with this country I just want to go home. Can't they give us new people some breaks???

Has anyone done this or made so many costly mistakes? I feel sooooo dumb and of course my husband is furious with me because "I should have known"

Sorry this was so long but thanks for your comments.

To comply with US banking law all a bank has to do is include a pamphlet outling the terms and conditions on the account. No signature required. Did you read it when the account was opened?

If a bank was required to provide you with a copy of all applicable laws affecting your account then it would be several volumes long and you probably would not have read it anyway....

[no name 1]

you can tell the bank you don't want an overdraft you know...

And I never post dated checks...you either write it when you have $$ or you don't?

[CanadaGirl 0]

fwaguy...I asked the lady on the phone where it states that I can not post date a check and she just said it's illegal. I signed an agreement on the uses of the account but it didn't say anything about post dated checks. I did read all the small print when I got a checking account and it doesn't say anywhere that you can't post date a check.

The only reason for post dating the check is because I didn't get paid until today. I need to send the check ahead of time since it takes time to mail to Canada. I don't have a cushion in my account because I don't have any extra money. Yes it would be nice to say ok I get paid on Dec. 1st and I will just send a check to Canada same day delivery so my dad can pay my bills. Unfortunately that's not the case. I guess from now on I need to be very strict in telling my dad not to cash the check until the date on it. He thought the same thing as me...the bank won't cash it until the date on it.

About the overdraft. Yes I can not sign up for it but if I don't have money in my account and something like this happens then it is a $35 fee instead of $20 overdraft protection. Back in Canada it would just say insufficient funds and remain at $0...no fees.

Thanks for the comments but still feeling pretty dumb.

[payxibka 10,045]

The information that relates to post dating checks is probably governed by the Uniform Comercial Code (or something similiar to that) and therefore would be included in the volumes of law that they do not need to provide. They may simply need to make reference to it and they are covered.

[Nancy2015 2]

I have never heard that post dating checks was illegal, but I never tried to deposit a check before the date that's written on it, because I thought it didn't make sense.

Overdraft protection is optional, you should be able to cancel it. Then, if you don't have money in your account, your check card transactions will be declined and checks will bounce. There's fees for bounced checks too, so be careful with that!

The only costly mistake I made was stopping payment on a check. This is a service my bank charged me $25 for. I know better now

CanadaGirl, I know it can be very frustrating, just hang in there! Good luck!

[bethnash 0]

Banks in the US confuse me too!! My banking was so much simpler in the UK...with my overdraft there you had to apply for one, here if my husband goes into his overdraft in reality it is coming out of his savings account so its not a real overdraft like i would consider one!!

Im still trying to get used to the system and the way they word stuff over here!

[Killer_Clown_2009 0]

Canada has overdraft, but it is a line of credit, it doesn't take it from a savings account. If I ever feel I have gone over in my checking account, I transfer some from savings that day. I have done this a few times and they haven't charged me the $10.00.

I used to post date cheques all the time, and I have had them cashed ahead of time a couple times in Canada, but usually not. I don't see why post dating cheques would be illegal.

My husband says it is illegal, but he has no idea why.

[CanadaGirl 0]

Thanks for the help guys. Yes overdraft here means it comes out of your savings and then they charge you a fee to transfer it for you. They are so helpfull here

I have pretty much simmered down now but I hope I can get used to this system and not make these costly mistakes anymore.

[Flames9_RN 358]

Yep post dating cheques means nothing here inthe USA. I sent a few to pay bills on sucha such date and they always chas them prior to the posted date, lol Never used the overdraft thing, but I guess they get ur $$ one way or another. If you issue a chequ and dont have enough $$, they charge u a fee as well.

[Peggy 1]

Charterbank sucks

[de_sjiem 0]

About the overdraft. Yes I can not sign up for it but if I don't have money in my account and something like this happens then it is a $35 fee instead of $20 overdraft protection. Back in Canada it would just say insufficient funds and remain at $0...no fees.

Thanks for the comments but still feeling pretty dumb.

that's odd.. when I was in Canada we'd get charged for a NSF cheque.. it was about $25, and then the place that had the cheque would also be charged $25 as well.. so for me a $30 overdraft charge isn't even that bad...

[motu 6]

As you say in your post even the Canadian banks cashed the check that was post-dated - I think you are relying too much on the date on the check when in fact no one looked at it (your dad, your Candian bank, your US bank) - as a matter of convenience banks do not verify anything it seems - they cash checks that are even unsigned and cash them for the incorrect amount. The only thing they seem to look at is the account number and the money in that account at that time. Do you know that there is a system by which a business can scan your check and take it out of your account instantly? Yes many businesses do that - imagine my surprise (2 years ago) when a car repair clerk gave me back my check and told me that was my receipt - yes the money had been transferred in a moment. Its part of the wonderful technological breakthroughs here.

And wait till you get introduced to the great world of credit cards! (I got charged hundreds of dollars to an account that I had not activated the credit card (and had in fact shreded it.) They don't check names, dates or validity on credit cards - the bank that issued this card allowed the charges - its only the biggest or second biggest bank in the world!) Have Fun with the financial systems here - one way to avoid overdraft and other such charges - have lots of money in your account! Easier said than done.

[lak&ajm 0]

I asked the lady on the phone where it states that I can not post date a check and she just said it's illegal. I signed an agreement on the uses of the account but it didn't say anything about post dated checks. I did read all the small print when I got a checking account and it doesn't say anywhere that you can't post date a check.

I work in a bank on the retail/deposit side. For years I also trained our employees. One of the areas I always tried to cover and explain was the terms of the account and regulations. Bank have to disclose so many things to their customers. These are done in many different formats, and yes unfortunately in small print. I wanted our employees to understand this, so they could explain it to our customers in situations like this - or whenever a customer would actually read the fine print and ask questions.

At my bank, the post-dated check issue was disclosed to customers approximately 12-13 years ago. On the back of our signature card in the "Terms and Conditons of Your Account" there is one area - Withdrawals. Within this it states "We may charge your account for a check even though the payment was made before the date of the check, unless we have received written notice of the post-dating in time to have a reasonable to act." This pretty much means placing a stop payment on the check until the correct date. This is standard verbiage from the company who supplies our documentation. I would almost bet this statement also been made "standard" in the banking industry. Maybe not in those exact words, but something like it.

The tellers as they accept checks, should be reviewing them before processing. Unfortunately, that is not always the case. And also keep in mind the number of checks being presented at one time in a deposit or for cash. It should be easy to catch one or two checks, but larger numbers are not always reviewed as carefully - if at all.

When I first started working for this bank, every check was hand-filed into the customer's file. During this time, we could "catch" post-dated, stale-dated (more than six months old), amounts not agreeing, not signed, etc. With the large volume (thousands and thousands and thousands) of checks processed each day by individual banks, more and more are not even "seen" by a human eye. They run "through the system". I am not saying this is better, it is just the way now.

I will admit as a banker and trainer the statement the lady told you does bother me. Technically I would believe this is correct. A check should only be written when there are sufficient funds to cover it (and yes I know the OP would have the funds on the date listed on the check - just not at the time of writing the check). If there are not sufficient funds when it is presented and the check "bounces" then there could be legal repercussions for the person who wrote the check.

However, if this lady worked in my bank, as the trainer, I would have shown her where the statement on posting dating checks is listed in the disclosures issued to you at the time your account was opened. This way she could give you better information than just it is illegal.

And everyone please do not believe someone or some company when they say to give them a post-dated check!! "We will hold it until that date"........or......."you know, the bank cannot even accept them until the date written". As you can clearly see by this thread, it does not always happen. Believe it or not, this has been requested of me a few times.

Ok....sorry for going on for so long.....I just wanted to share the "banker's" side of this.

Lori