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Old 2006-03-10, 11:14 AM   #1
Jake
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Question Legality of expiring cheques

I recently received a cheque for a mail-in-rebate and I noticed in small type "invalid after 30 days". The cheque was dated February 14th and I only received it two weeks later (USPS ground). Since the funds are in US $$ I have now to visit my branch when they are open to deposit it before the deadline. Pain-in-the-butt. My question is, is the expiry legal? This is a rebate that I submitted in September of last year and only just received after many emails. Seems to me like just another attempt to bilk the consumer out of their money.
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Old 2006-03-10, 11:24 AM   #2
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I get expiring cheques all the time. It's perfectly legal and a good way for the issuer to control their accounting.

If you don't cash it in time you're still entitled to that money, they just have to issue a new cheque.

As for US funds...I just deposit them through interact at face value and the bank (RBC) always does an adjustment for the exchange.
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Old 2006-03-10, 01:20 PM   #3
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Quote:
Originally Posted by Robobob
As for US funds...I just deposit them through interact at face value and the bank (RBC) always does an adjustment for the exchange.
Same here.
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Old 2006-03-10, 01:46 PM   #4
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Thanks you just saved me a trip to the "inside" of a bank. I was not aware that banks did the exchange rate conversion after a deposit was made.
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Old 2006-03-10, 01:56 PM   #5
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I got charged a fee for that though. YMMV
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Old 2006-03-10, 02:00 PM   #6
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FYI...It's not immediate. It usually takes a few days before it shows up. At my bank it shows up as a separate "Adjustment Credit"
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Old 2006-03-10, 02:14 PM   #7
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Maybe it is time to open up that US dollar account.
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Old 2006-03-10, 02:16 PM   #8
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Jake, I think that 30 day expiry note is invalid because I thought a cheque was good until its stale date. My Knowledge is cheques become stale dated 6 months after issue but I'm no lawyer!

Here is the Canadian view.
Quote:
When is a cheque considered stale-dated, and is it no longer valid after that point?

Under CPA Rule A4, Section 21, a cheque is considered stale-dated after six months, unless it has been certified. Although it may be returned through the clearing for that reason, there is no obligation to do so, and the payor’s financial institution may still accept it as a valid payment item.

An institution accepting a cheque that is dated more than six months earlier may choose to contact the payor’s financial institution to confirm whether the cheque will still be accepted.
From the US, what I could find

Quote:
Question: When is check considered "stale"? I've always known it to be 6 months from the date the check is written. Does the law vary state to state or is it a Federal law?

Answer: In spite of being called the "Uniform Commercial Code," the UCC is state law which is fairly consistent across the country. The six month "stale date" reference is found in §4-404. Check you own state's version of the UCC to see if it varies from the "standard."
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Old 2006-03-10, 02:27 PM   #9
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Thanks Hugh. I always throught the stale date was 12 months.

I called BMO and they said there were no fees but the funds would be held for 30 days.
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Old 2006-03-10, 03:38 PM   #10
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Thanks for that info Hugh, I always thought it stale dated in 90 days
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Old 2006-03-10, 03:49 PM   #11
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Am I reading that info wrong or does "Stale Dating" not really mean anything? It seems that after 6 months it's at the banks discrection whether or not the cheque will process.
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Old 2006-03-10, 04:30 PM   #12
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Again I'm no expert but...

I was under the impression for any cheque in Canada a bank would accept it for up to six months after the date on the cheque.

Therefore the issuer of the cheque has to have the funds available for that time.
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Old 2006-03-10, 08:02 PM   #13
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Well I would like to correct the WRONG information I gave earlier provided by BMO. I end up being able to make it to a branch before they closed and deposit my cheque. I had to pay a $5 fee even though I was told over the phone I would not have to (they still hold the funds for 30 days though). I was also told at the bank that you CANNOT deposit US $ cheques using the ATM unless it is into a US $ account. I also was informed the monthly service fees would be going up and the Air Miles rewards would be going down. All in all a typical day at the bank.
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Old 2006-03-11, 08:38 AM   #14
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Jake. That stinks. At RBC there's no problem depositing US cheques at the ATM, no fees and they don't hold the funds at all. Your story makes me glad I switched from BMO years ago.
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