does a company have to tell me if they are going to process my check electronically?

Question

I gave my landlord a dated for the 5th, which is the last day to pay without being charged a late fee I got paid on the 7th, which gave the check 2 days to clear which is what it always takes. I checked my account today and he has switeched to an electronic ACH system and didnt tell me so in short it posted yesterday and bounced. Can he do that without telling me?

Answer 1

Yes they can. Many businesses will post the fact that your check is being processed electronically to help you avoid the embarrassment of a bounced check but they are generally under no obligation to do so.

When you sign a check, you are certifying that the money is IN THE ACCOUNT at that moment. If the money isn't there, you are actually committing a crime in most jurisdictions.

You'd have the same result if your LL banked at the same bank or if he presented it at your bank for immediate payment. You wrote a bad check and now you have to cover it. Sorry, but that's the facts of life. In most cases it would cost you less to pay the late fee for the rent than deal with all of the fees and chargebacks for the rubber check.

Talk to your landlord and see if you can pre-pay a few extra days and shift the due date to the 10th. Then make sure you pay in full in the first payday prior to the 10th. I worked that with a few of my tenants and it solved the problem for most of them. (The last one would have asked for her change back on a free lunch so there wasn't any hope there. Kicked her out when her lease expired.)

Answer 2

This is the electronic age. There a lot of places in Texas that do not except checks anymore for any reason. You use plastic or cash. And if you don't have the cash they have ATM machines on premises
When you write a check and there are no funds to cover it is against the law.

It is against federal law to write a post dated check for anything. But a lot of small businesses advertise they take post dated checks.

Answer 3

I believe they do not have to tell you, but it would have been helpful and just common courtesy to do so. My landlord recently did the same thing, but sent out a letter explaining the change. Too many people (including myself) float checks! But these days, I just always assume that they will have the system and make sure I have the money. Also, I have never seen any notice at a large retailer that does this.

Answer 4

Many places run checks electronically these days... You can't assume you have a day or 2 to get money in the bank.... Another shocker to you dear.. writing a check when you don't have the money to cover it is ILLEGAL....

EDIT: to Sean... I work at Wal Mart (is there any bigger retailer?) and we process checks electronically.. You even get your check back right there on the spot! But is there a huge sign explaning this?? Nope, you're right...

Answer 5

Absolutely he can do that, and he does not need to inform you in advance. When you present a check to anyone, you are expected to have the necessary funds available for said check at the time it is presented.

Counting on 'float time' is never wise.

Answer 6

Yes he can. When you hand him the check, he has the right to the cash imediately. He can take it to your bank and cash it and it would hit your account right away. Even if you date a check with a future date, he can cash it now.

Answer 7

Its not the landlord, its the banks that process checks electronically. It is becoming increasingly common and no one has to notify you first.

Answer 8

There is no such thing as "floating time" in this electronic age!!!

Answer 9

Yes he can.