I have a debt to pay but not enough funds in my account. I dated a check a later date when I would have funds. Is this illegal?

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Question:

I own a small business and owed money to a vendor.  He was pressing for payment so I wrote a check and dated it four days out when I knew I would enough money in the account to cover the check. I told this to my vendor. He immediately tried to cash the check but couldn’t.  He says there is a criminal penalty for check fraud he is going to file a complaint against me? Did I commit a crime?

Answer: (1)

Each state has its own laws concerning fraudulent check writing practices and check fraud penalties.  However, it is universally true that a check with a date after the date on which the check is presented– this is called a “post-dated check” is not subject to criminal prosecution. By post-dating the check you specifically said that the check is only intended to be honored on or after the date you put on the check. By post-dating the check you essentially create an extension of credit by your vendor.  While the vendor may not agree, what he has is a bad debt, not a case for criminal prosecution.  And it is more so the case since you told him that you were post-dating the check.  Under most state penal codes there is no criminal conduct in this situation.  Threatened criminal prosecution is always a serious matter and you should consult an experienced criminal defense attorney for advice on how best to handle this situation.

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