There are a few ways you can determine if a check is stale-dated, whether you received the check or have concerns about a check you’ve written. There are a few ways to determine if a check is stale, whether you got it or wrote it. The exact due diligence requirements vary by state, but the National Association of Unclaimed Property recommends a formal letter to the check recipient sent by first-class mail.
Can I Cash a Check From 2 Years Ago?
- As long as the issuer is still in business, you can use those instruments wherever they are accepted.
- A stop order prevents the other business owner from cashing both the original and new checks.
- Credit unions and smaller branches of large national bank chains may not have the necessary cash on-site to clear a very large check.
- It may be tempting to merely reverse the expense and add the cash back into your general fund.
- A personal check is good for 180 days from the date printed on the check.
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. As mentioned, personal checks are usually valid for up to six months after the date they were issued, but you shouldn’t count on the bank to pay attention to the dates. One solution is to try to cash the check at the payor’s bank. 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 the check. In either case, banks are under no obligation to accept a check once it is deemed stale.
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It’s typical for personal checks to expire after six months. This time frame is laid out in the Uniform Commercial Code (UCC), a set of laws that govern commercial transactions in the United States. After six months, it’s generally at the bank’s discretion whether a personal check is considered expired. Apart from that, an employer who has received checks from the US treasury such as federal tax refund can be counted as stale-dated checks.
What Happens if You Don’t Cash a Check?
Depending on the circumstances, a bank may refuse to honor the check and will not allow the person to deposit or cash the check. With a stop payment notice, the bank employee who is responsible for handling your accounting transactions ensures that the check becomes void. It prevents the other business owner who is on the client-side of the table from cashing old and new checks, thereby maintaining transparency in the business. By doing a regular examination of the transactions, even the small businessman can spot the checks that haven’t been encashed easily. That said, it’s important to point out that stale dated checks are not the same as voided checks, which will have the word “VOID” written across the face. Instead, stale-dated checks are the same as unclaimed checks and dormant checks.
Stale checks: When to act and when not to
Checks have no intrinsic value, so banks have to check the account numbers to determine if there is money in the account and if the accounts exist. Some checks carry notices indicating that they will become void after a certain period of time. Once that date has passed, these checks are referred to as stale dated. Instead, you will need to ask that the issuer of the check provides you with a new check for the purpose of the payment.
What Are Some Reasons a Bank Won’t Cash a Check?
Other issuers may not charge fees, but they must eventually turn unclaimed assets over to the state. It’s always best to contact the issuer before trying to cash a stale or outstanding check. Such a call may be awkward, but it’s better than imposing an overdraft fee on the person or business that wrote it. Ask for a new check if the old one is past six months old.
Legally, banks are only required to honor checks for six months. Beyond that, it is up to the bank’s discretion, which may include contacting the account holder for approval. The bank also can simply bounce the check without even trying to reach out, which means the depositor may get hit with a “deposit checks are stale dated when item returned” fee that can be up to $30 or more. A check with “void” written on it means no one can cash or deposit it. A check can also be considered void if it’s missing critical information or goes through the escheat process. Freezing an account will prevent all outstanding checks from clearing.
- After that, the issuing bank decides whether to cash the check for you.
- For questions or concerns, please contact Chase customer service or let us know about Chase complaints and feedback.
- Still, it’s best to honor any language on a check—either deposit the check promptly or contact the check writer if you can’t make the deadline.
- The validity period for a check often depends on whether it’s a personal check, business check or cashier’s check.
- However, bank routing numbers or account numbers may change if your bank merges with another bank.
Are Punitive Damages Available From a Bank When They Wrongfully Honor a Stale Check?
What if you find a stale check?
- 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 the check.
- Cashing a check promptly ensures that you can access the funds without issues, such as the check bouncing or having it go stale.
- Your bank might let you deposit the check, but the issuing bank can reject it.
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- However, these checks are typically good for six months to a year.
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