New Post Dated Cheques Rule?
Is anyone aware of this new Post dated cheque rule. I am not sure if it is a hoax or true. Can this be validated by someone working in a bank? Find below short exerpt from the link:
http://newsweaver.ie/altamimi/e_article001340487.cfm?x=bf6wV5k,bbvGnHct,w
This is important information for those who pay rent or pay vehicle loans using Post dated cheques (if it indeed is true)
""Warning!
Cheques made payable at a future date could land you in prison
Overview
As from 13th May 2010, in Qatar, cheques which are post dated may be presented for payment earlier than the date specified on the cheque.
This change will have important and far-reaching consequences in Qatar. Drawers of cheques will no longer be able to rely on their cheques being “cashed” from a future date.
They will be able to be presented for payment anytime after they are handed to the payee. The banks will be required to pay the cheques on presentment.
As a consequence, we expect that banks will need to consider implementing more widely other payment techniques and the government, further changes to the laws.............................""
http://newsweaver.ie/altamimi/e_article001340487.cfm?x=bf6wV5k,bbvGnHct,w
For something this simple, isn't it easier to simply take a look at what other countries are doing? What's the point re-inventing the wheel.
Anyways, it is true because recently when i applied for a credit card, my bank asked me to give a cheque as security. And they asked me to write the current date on it and then sign over the date so that later if it needs to be used, they can cancel the date, write a new one and my sign is already there next to it. They told me that the central bank regulations does not allow them to take a post dated or w/o date cheque. Gee.... talk about stupid regulation; what's the use if there is such a simple way out.
It means that from 13th May 2010 there are no more Post Dated Cheques. All cheques are cash cheques which can be encashed at any time. It depends now on the person who got the cheques as he can keep it as a security and he can also encash it at any time if he is in need of money. Funny isn't it? I am hearing such a thing for the first time in my life.
upon implementation of this rule, your landlord has the right to do so. again this now depends on the agreement between you and your landlord, which should have a clear indication on when he or she will draw the money and revoke the right of this rule.
What if you have given your landlord postdated checques for after the 13th of May 2010 and he takes all of them to the bank at the same time for encashment? doesnt this mean that you will go to prison if you do not have sufficient funds in your account to cover those cheques?
This means the bank where you took the loan must be reliable and honest. However this just emphasizes the need for thorough inspection of the contract you signed. It must stipulate that the drawee shall only liquidate the post dated cheque on the date stated in the cheque.