However, dealing with physical checks poses a challenge – keeping track of their whereabouts. They can easily be misplaced or accidentally discarded with other waste. Losing a check or delaying its deposit can result in it becoming stale-dated. Though you want to avoid letting a check go out of date, there are some important considerations for a check that has become outdated. We are an independent, advertising-supported comparison service.

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Like many kinds of checks, they’re generally valid for 6 months. Other types of checks, like certified checks or government-issued tax-refund checks, may have a longer expiration or none at all. When you write a check that goes uncashed, you may wonder what to do.

Are Punitive Damages Available From a Bank When They Wrongfully Honor a Stale Check?

Typically, when individuals write checks, they have their current balance in mind and expect the funds to be withdrawn within a short span of time. To make a case for punitive damages in a situation in which a bank wrongfully honored a stale check might be challenging. Again, only if the bank committed some type of outrageous wrong could a claim for punitive damages succeed. – If you’re the one who wrote the check and it has yet to be cashed, check with the recipient to see if they still plan to cash it. Your bank might let you deposit the check, but the issuing bank can reject it.

What Happens If You Cash An Expired Check?

• – If they do, offer to write a new check but get the old one back first or stop payment to avoid surprise fees.
• The US Uniform Commercial Code (UCC) specifies that banks are not obligated to cash a check more than six months old.
• Some business checks will have “Valid For 90 Days” noted on the check.
• Checks become outdated mainly as a way to protect the account holder.
• When you cash a check, the bank or credit union gives you cash in hand in exchange for the check.

Instead, the money likely belongs to the state, and you’ll have to go through the unclaimed property and escheatment process. The exact due diligence requirements vary by state, but a formal letter to the check recipient is usually stale dated checks a good idea. Letters should alert the owner of your obligation to turn over the property to the state. Almost every state requires a business to perform due diligence by contacting the owner of the unclaimed property.

However, if you miss the expiration date on a government-issued check, don’t worry. Contact the federal agency that authorized the Treasury check and request a replacement[1]. Checks that have been outstanding for over six months are considered “stale” and cannot be cashed. 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.

Treasury checks, if your state or local government check has expired, you are entitled to contact the issuing agency and request a replacement. Since you owe the money to either the state or the property owner, plan to monitor uncashed checks and check in periodically with the payee. 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. Even if banks are only legally required to honor checks for a six-month period, it is usually a good idea to avoid any potential problems by depositing checks when you receive them. And if you fear that a check you have written has been lost or stolen, you should move promptly to cancel the check with your bank. Checks that remain outstanding for long periods of time can’t be cashed, as they become void.

Under federal law, a bank is not required to make payment after that point. If you want to cash a check a few months after receiving it, consider giving the check writer or issuer a courtesy call. Let the person or entity know you plan to deposit the check, so they can make sure their account has the funds. States have different rules about when businesses must report unclaimed property, and the period before checks are considered unclaimed can vary. The Securities and Exchange Commission (SEC) suggests it’s often around five years, but it’s crucial to check your state’s laws to ensure that it is equal to that. The National Association of Unclaimed Property recommends sending a formal letter to business owners warning them that their property may become unclaimed.

• If you try to cash a stale check or someone tries to deposit a stale-dated check that you’ve written, here are a few things to look out for.
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• The person who issued the check can also contact the bank to verify that the check will not be accepted beyond its expiration.
• Still, it may take some work to retrieve money owed to you.
• Checks can become stale or outdated after a certain amount of time has passed.

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