post dated cheques

[vernon]

My housing company wants post dated cheques as the method of payment for the year, and they want them at the time I sign the contract.

That's not a logical move on the housing company's part as there is nothing stopping you from cancelling all of the post dated cheques within minutes of writing them rendering the transaction pointless.

 

[iLB]

I know this is all a bit odd, i went into the estate agent on my way to the bank to ask about standing orders and got a definate no in response, which seems odd to me, but everyone I know with the same estate agent or different is paying with the same method.

 

[marinyork]

They need their ass hauling to the SU and blacklisting.

 

[buggi]

there's no way the bank will agree to that. they don't recognise post dated cheques as legal tender.

 

[Debian]

I know this is all a bit odd, i went into the estate agent on my way to the bank to ask about standing orders and got a definate no in response, which seems odd to me, but everyone I know with the same estate agent or different is paying with the same method.

So what happens when you tell the agent you don't have a cheque book? What happens when you tell the agent that banks don't like postdated cheques and that they are forbidden in the banks T&Cs?

 

[domd1979]

The estate agent will look blankly because they generally don't have two brain cells to rub together...

 

[Theseus]

there's no way the bank will agree to that. they don't recognise post dated cheques as legal tender.

<pedant mode on>
No cheques are legal tender, they are promissory notes.

The term "legal tender" only applies when you are settling a debt, not paying for something at or before taking possession. It defines the forms of payment that must be accepted by the holder of the debt in settlement.
</pedant mode off>

 

[SavageHoutkop]

unashamedly copied from a pdf on the web:

Payment methods
Many agents/landlords ask students to pay all of the
rent in advance in the form of 12 post dated cheques. You
should avoid this if possible, post-dated cheques can be
presented before the due date inadvertently and if you
have insufficient funds in your account you will then be
charged by your bank for bouncing a cheque. You could
ask your landlord/agent if they can set up a standing
order instead. Good agents/landlords would not have a
problem with this. Some premier agents may even have
a have Direct Debit facility in place. This is the easiest
and most effective way of paying your rent as it takes
the hassle of remembering to pay away from you.
Whilst most agents will still accept cash payments the
safest way to pay is taking advantage of credit/debit card
payment facilities. Remember to check as to whether
surcharges apply. That way you are not carrying around
large amounts of cash and all payments are backed up
by your bank statement as well as your receipt!

from here ("Cardiff's letting agent")
http://www.keylet.co.uk/website/_documents/studentguide.pdf

 

[Debian]

Sometimes needs must, I know.

But I would be very, very, very reluctant to give anyone one postdated cheque, let alone twelve totalling a very sizeable sum that could be presented for payment at any time.

I can't understand why any business would consider that having a handfull of cheques in any way guarantees payment . Thick as a brick springs to mind.

 

[iLB]

yes i'm inclined to agree, it's not as if a business needs to be of a certain size (turnover wise) to have a standing order facility either is it? i may press the matter further when i go to sign the contract tomorrow.

 

[Debian]

yes i'm inclined to agree, it's not as if a business needs to be of a certain size (turnover wise) to have a standing order facility either is it? i may press the matter further when i go to sign the contract tomorrow.

Any business or individual can have a standing order payment made out to them. You just need an account number and sort code to pay it in to.

 

[MacB]

20+ years ago I worked in the collection department for Yellow Pages, post dated cheques were a 'normal' payment method. The same was true for collection agencies we employed and across collection depts in general. At the time customers often said to us that their bank had told them a post dated cheque wasn't legal. The stock info we were given was:-

writing a cheque that you know won't clear is illegal
post dating a cheque to a point when you expect funds to be available was fine
if your circumstances changed then you just needed to contact us within 5 working days of the cheque date and we wouldn't present it

It's all about trying to make sure that monies owed to your company have a greater priority. In reality it resulted in lots of bounced cheques and bank charges.

Andy, tell them to stick it as an idea, SOM or DD should be perfectly acceptable, SOM would be my preference, more control for you then.