1-14: Stale Dated Checks Policy Library Fort Lewis College

If you contact the person who wrote the check, they might be willing to send you a replacement. With the exception of processing stop payment requests, agencies will follow the above procedures for all unclaimed checks. A Check becomes Stale Dated when it is at least 6 months but less than 30 months past the check’s issue date, or can be declared lost, stolen or destroyed by affidavit.

If you don’t have any luck contacting the check issuer, consider working with your bank. Some banks may deposit checks if they have reason to believe that the issuer is legitimate, and the company has enough funds in its account to cover the check. A stop payment informs your bank that you do not want the check cashed. A stop order prevents the other business owner from cashing both the original and new checks.

How long is a money order good for?

Cheques are becoming less and less common to make or receive payments. Not only are they easy to lose, but it can take longer for funds to reach the right account with a physical cheque. This is where you might run into a situation with a stale-dated cheque.

Banks don’t have to accept checks that are more than 6 months (180 days) old. That’s according to the Uniform Commercial Code (UCC), a set of laws governing commercial exchanges, including checks. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. The first step to implementing a practical company policy for stale-dated checks is to understand state laws.

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There are forms that need to be completed and you will need to remit the funds to the state. The state will then hold those funds while they attempt to find the payee. If a live check was issued, write a letter Stale dated checks to the vendor stating that the check (indicate check number, date and amount) has not cleared the bank. If the vendor responds, you can move forward with a replacement check and voiding the outstanding check.

To protect you from someone depositing a cheque without your permission, include a note that states “for deposit only to the account of payee”. It’s important to make sure that you spell the recipient’s name properly on the cheque. And, it’s equally important to make sure the name you’re writing in the Pay To section matches the name on the bill itself.

Keeping thorough records will go a long way toward ensuring business compliance. Certified checks guarantee that there are funds in the account, so those cashing the check don’t have to worry about it bouncing. Another solution is to contact the person or business that wrote you the check and ask them if they would issue another check to replace the stale one. Freezing an account will prevent all outstanding checks from clearing.

The offers for financial products you see on our platform come from companies who pay us. The disclaimer here is that banks are not under any obligation to honor a stale-dated check. Ultimately, a stale-dated check is one that is at risk of not being honored.

Make sure that a replacement check was not cut or an order cancelled. Below are a few of the most common questions we receive from people looking into what slate-dated checks are. If you have further questions you would like to ask our team, don’t hesitate to get in touch. Santander Bank, for example, charges $15 a check, while at Wells Fargo and Bank of America, the fee is $12. Plus, the person who wrote the bounced check might be charged a non-sufficient funds fee of up to $35.

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The STO is able to stop payment of stale dated checks only through the receipt of stop payment requests from agencies. See SAM Section 8045 for specific procedures on processing stop payments. Entries to record the cancellation transactions will be made in the appropriate disbursement register or the Revolving Fund Cash Book.

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. The UCC guidelines that allow banks to deny checks after six months do not apply to certified checks. But a certified check that sits for too long may be subject to state abandoned property laws.

State law requires that all checks two years or older be reported to the Department of Revenue. The exception is Payroll checks which must be reported when they are one year old. Checks issued to California addresses may not be reported to the State of Washington but must be reported directly to the State of California. Checks reported with addresses to other States are passed on to those states by the State of Washington.

Stale Cheque vs. Post Dated Cheque

We’ve helped more than 5 million clients find the right lawyer – for free. A stale check is one presented to a bank after a specified time, typically six months. 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. Banks and financial institutions consider a cheque to be stale-dated when it becomes too old, which is usually after six months.

Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Use this information to create a policy on owner contact and state remittance for different categories of uncashed checks. NAUPA’s free reporting software can help you craft a sensible plan.

It may take some convincing, but it’s possible to have the bank settle the check for you, even after expiration. You should also keep diligent records of the attempts you made to contact the business owner. In some cases, if your bank was negligent – e.g., your bank failed to perform due diligence in verifying the check, then you could request to be compensated for any losses or damages. These problems can persist, as plan sponsors will often have incorrect address information, and neither alternate payees or beneficiaries can be found. This may be a surprise to hear, but there are many different—yet appropriate—accounting methods for small and midsize businesses. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.

If a bank does elect to cash or deposit a check for you, this does not mean the balance of the check will be immediately available. Each bank has its own check hold policies, check endorsement requirements, and clearance period. Money orders don’t expire, but cashing in a money order late might cost you. The company that issued the money order could charge a nonrefundable fee that’s taken from the check amount if you don’t cash the money order within one to three years. Treasury (such as federal tax refund checks) are void one year after the issue date. Almost every state requires a business to perform due diligence by contacting the owner of the unclaimed property.

Company Info

Payroll checks are treated differently than regular personal or business checks. Stale checks are uncashed checks that have been issued for at least a length of time ​180 days​ from the issue date. However, you still owe the money, and banks can choose to process the payment. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first.

Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. If you receive a check that is more than 180 days old, depending on the circumstances, a bank may refuse to honor the check and will not allow you to deposit or cash the check. We finally started giving her money orders instead of checks, so we could deduct that money from our bank balance immediately and not have to worry about stale checks at all. This is generally true even if a check specifies a ‘void-after’ date. Checks that are not negotiated over an extended period are considered dormant.

• It might be worth checking with your bank or financial institution to get a better sense as to the fees you could get charged.
• See SAM Section 8045 for specific procedures on processing stop payments.
• The amount of reimbursement you are seeking will determine which court to file your claim in.
• However, this isn’t the case if it’s a certified cheque or a Government of Canada cheque.
• Individuals or organizations seeking a replacement check must complete a “Request for Replacement Check” form before a reissue check will be processed.

One of the most significant problems with checks is that it’s easy to lose them, giving rise to what’s known as stale-dated checks. As a small business owner, you may use business software to expedite the payment process. But every now and then, you may need to write a check to a vendor or receive one as a form of payment. If possible, try to go to the branch where the payor’s account is located as they may have a banking relationship with the person or business that wrote you the check. Another thing you can do to prevent a stale check from clearing is to freeze your account.