Stale checks are checks that remained uncashed or undeposited long after the dates on which they were issued. They may be too old for processing by banks, credit unions, or other financial institutions.
Stale checks may also be called stale-dated checks or expired checks. The length of time checks are considered to be valid can vary by state. In the State of Florida, checks are considered valid for six months, or 180 days, from the date that is written on them. The issuer of a check may also note the time limit for the validity of the check on the face of the check.
When someone receives a personal check or a business check, it is important that they understand that check has a limited period during which it is valid. The majority of personal checks have a maximum time frame in which they can be presented to banks before they become invalid or stale.
Similar to Florida, this period is typically 180 days, or six months, from the date the check is issued. In other words, the check will become stale if it has been in someone’s possession for 180 days or more and they have not cashed it or deposited it.
Once six months have passed since the date the check was issued, it cannot be deposited into a checking account because it became stale. After this time, a bank may refuse to accept the check, meaning the individual cannot deposit or cash that check.
In some cases, a business check will have “Valid For 90 Days” written on the check. This means the bank that issued the check has a stale check policy that does not allow them to honor a business check if it is presented after 90 days.
Because of these potential limitations, an individual should carefully examine any check they are given and make sure it is not already stale. An individual should also be aware of how long they have to cash or deposit a check before it becomes stale and act to deposit or cash that check during that time period.
How Florida Banks Treat Stale Checks
In Florida, a bank or other financial institution has the right to refuse or to reject a stale check. A check may become outdated, or stale, once 180 days has passed, as noted above.
States that follow the Uniform Commercial Code (UCC), including Florida, for bank deposits, provide that the time frame for valid checks is 180 days or six months from the date the check is issued. It is, however, up to the bank to decide whether or not to process the stale check.
If an individual wants to cash a stale check at the bank where it was issued, they would have to get approval from that bank. A bank is not obligated to accept a check after it is deemed stale.
A bank may process a stale check for a fee if it is older than six months. Whether or not the bank that issued a stale check will allow an individual to cash it will typically depend on the following factors:
- The approval of the account owner or payor
- Whether the payor’s account is still open and is in good standing
- If the name of the payor on the check matches the name of the owner of the account
- Whether there are enough funds in the account to cover the check
- If the name of the payee matches the identification of the individual cashing the check
Whether a bank will allow an individual to deposit a stale check into their account will typically depend on the following factors
- Whether the issuing bank is still in business
- If the payor’s account is still open and in good standing
- If there is a stop payment order
- Whether the amount of the funds has been verified as available
- The depositor’s average daily account balance
- Whether there are enough funds in the depositor’s account to cover the check if it is rejected
- Placing the funds on hold until the check clears
If the stale check is returned, the bank may charge a fee. If the funds were not placed on hold, the deposit may be reversed.
What To Do if a Florida Bank Honors a Stale Check Without Permission
If a Florida bank honors a stale check without permission, it is important to check the policies of the bank to see if they offer a remedy or reimbursement for lost funds or fees that an individual incurs when the bank accepts a stale check. Usually, when a bank honors an individual’s check in good faith and there is not a stop payment order, the bank will not be at fault for allowing the check to be processed and the funds to be debited from the account.
Banks are typically only liable for honoring checks if there is an issue other than the date of the check, for example, a forged signature or another type of check fraud. In situations where the bank was negligent, or failed to perform due diligence in verifying the check, an individual can request compensation for losses or damages. A Florida lawyer can provide more information on the steps to take and the possible remedies when a Florida bank honors a stale check without permission.
How “Good Faith” Is Evaluated Under Florida Banking Law
Under Florida banking law, good faith is evaluated as honesty in fact related to the transaction or conduct. It requires that the parties acted reasonably, fairly, and without intent to defraud or deceive.
If an individual has any questions about whether their bank acted in good faith under Florida banking law when dealing with a stale check, they should schedule a Florida lawyer consultation.
How To Prevent a Stale Check From Being Honored in Florida
There are some steps an individual can take to prevent a stale check from being honored in Florida. One of the most effective and easiest ways is by using a check-stop payment order to stop the check from being processed.
The bank will take all possible steps to stop the check from being processed, but typically cannot guarantee that it will not be processed. If the check is processed, the funds may be debited, and the individual who wrote the check may be responsible for any fees, including the fee the bank charges for stop payments.
Another option is for an individual to freeze their account. This is commonly done when checks are stolen or other fraudulent activity has occurred.
It is important to note that frozen bank accounts are typically not unfrozen. An individual will likely have to open a new account.
What Happens When a Florida Bank Refuses To Cash a Stale Check?
If a Florida bank refuses to cash a stale check, an individual may have a few options. They can attempt to cash the check at the payor’s bank instead of where they bank.
An individual may also reach out to the person or business that originally wrote the check and request a replacement for the stale check. If this is not possible, an individual may be able to obtain a remedy in court. The amount of reimbursement that a party is seeking will determine the appropriate court in which to file their claim.
Punitive Damages for Wrongfully Honored Stale Checks in Florida
In Florida, punitive damages may be awarded in stale check cases involving negligence or intentional torts when the responsible party did something truly egregious or extraordinarily reckless. It is important to have assistance from an attorney when requesting punitive damages, as they can be difficult to prove.
When To Contact a Florida Lawyer About a Stale Check Dispute
If you have any issues related to a stale check in Florida, it is essential to reach out to a Florida finance lawyer for assistance. LegalMatch’s free lawyer-client matching services can connect you with attorneys who can explain your best options and the legal remedies that may be available to you. If you have 15 minutes, you can complete the online submission process today and hear from licensed and prescreened attorneys near you in Florida.
