Cash A Check

Pat Barron of the Federal Reserve says by their very nature, checks are meant to be cashed immediately. According to the Uniform Commercial Code, banks are not obligated to cash a check more than six months after it's written, although most will. However, there are other restrictions you should know about.

Check cashing restrictions

Government checks
You only have a year for checks from the government, such as the US Treasury. The government puts a one-year limit on the money it sends out. Barron says, "After that period of time, they consider perhaps it might have been stolen or lost and so the individual may go back and request a replacement."

Dividend or rebate checks
Companies often put a deadline on these, too. Often, they'll put a 90-day limit on deposits of these checks. The thought is that people who receive these are anxious to cash them, and won't need more than 90 days to do so.

Business, personal or even paychecks
An individual, especially on a personal account basis, may close that account or change their banking relationship. An organization might go out of business, leaving no money in the account to cover old checks.

If you try to cash a check from an account that is no longer open, you'll be the one who ends up paying. Penalty fees for that can range from 15 to 30 dollars, depending on the bank.
To avoid that fee, you can take the check to the bank the check is drawn from and verify the funds' availability, or, deposit the check as soon as you receive it, to lessen your risk.

There are other checks floating around out there that might get you into trouble financially. Fake checks. Just like with money, technology has made it relatively easy for unscrupulous people to counterfeit checks. So, how can you protect yourself?

Protecting Yourself

Get Information

Before you accept a check, make sure to look at the buyer's driver's license. Write down the person's address and phone number.

Look Carefully

Next, take a close look at the check. There should be some type of security feature like a watermark or ink that changes when you touch it. Different banks have different security features. So, a phone call to the issuing bank before you accept the check may be the best idea.

Make a Date

If at all possible, set a time and date to meet the person who's giving you the check. The best place to meet is at your bank. That way, a teller can verify the check upon deposit. Or, find out if an electronic transfer of funds from bank to bank is an option.

Receiving a Counterfeit

If you think you've received a counterfeit, what should you do? Here are some tips from the United States Secret Service:

>>Do not return it to the passer.

>>Delay the passer if possible.

>>Get information about the person as well as any companions, if there are any. Write down license plate numbers of any vehicles used.

>>Contact your local police department or United States Secret Service field office. The numbers can be found on the inside front page of your phone book.

>>Limit handling of the note. Place it in a protective covering, like an envelope.

>>Only hand over the check to a properly identified police officer or U.S. Secret Service Agent.

Read more smart consumer tips and strategies
from Fox11 Eyewitness News Online

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