Results 1 to 3 of 3

Thread: Postdated Cheques

  1. #1
    Diamond Member Blurock's Avatar
    Join Date
    May 2010
    Location
    Durban
    Posts
    3,437
    Thanks
    660
    Thanked 765 Times in 630 Posts
    Blog Entries
    1

    Postdated Cheques

    What is the position with post dated cheques these days?

    I was given post dated cheques (as a sign of good faith and commitment) by a debtor who was struggling to settle his debt. Two months in a row he has cancelled the cheques deposited. On one occasion he paid half of the amount, but the rest is still outstanding.

    Can this be constituted as fraud?
    Excellence is not a skill; its an attitude...

  2. #2
    Platinum Member sterne.law@gmail.com's Avatar
    Join Date
    Oct 2009
    Location
    Durban
    Posts
    1,328
    Thanks
    38
    Thanked 561 Times in 410 Posts
    Blog Entries
    7
    A debt based on a cheque can be collected via provisional sentence proceedings.
    A summons showing cheque is basically sufficient.

    It seems debtor is struggling.
    In my experience I find agreeing on a small weekly payment works well. The guy can afford it and chips away. People tend to keep hoping tthey will be able to pay in one go, which seldom happens.

    Of course it depends on amounts involved.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

  3. #3
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,978
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Blurock View Post
    Can this be constituted as fraud?
    Only if you can prove he had no intention of honouring the cheque when he issued it - an impossible task...

    Otherwise it's the equivalent of a promissory note - a declaration of an intention to pay.

    The stopped cheque trick irks me. I understand why people do it - it isn't as harmful to their account scoring by the banks as a cheque declined due to insufficient funds. Unfortunately depositing a cheque that comes back with a stop payment on it harms the scoring of the depositor.

    Nowadays when it comes to PDC's, I call the client on the morning I intend to deposit and ask if it is still OK for me to deposit the cheque. Essentially it's a very friendly "I'd rather hold back another day or two than deposit a cheque that isn't going to be honoured" call. Haven't had a single client's cheque bounce for over ten years doing it that way.

    It might also establish grounds for fraud if the client did happen to issue a stop-payment order
    Never had to test that possibility, though.
    The trouble with opportunity is it normally comes dressed up as work.

Similar Threads

  1. Do unpaid cheques fall under the NCA?
    By Dave A in forum National Credit Act Forum
    Replies: 8
    Last Post: 10-Jul-13, 02:26 PM
  2. VAT on Payment Basis + Cheques
    By cppgenius in forum Tax Forum
    Replies: 5
    Last Post: 05-Feb-13, 11:04 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •