You may not accept a postdated check
that is dated more than five days away.
Payday lenders, who typically require borrowers to endorse a postdated check
, trap borrowers in a cycle of debt at annual percentage rates of 400 percent.
Payday lenders make borrowers sign a postdated check
to borrow an average several hundred dollars until their next payday, usually a period of two weeks.
Payday lenders typically take a postdated check
from a borrower for the amount borrowed plus a fee, payable on the next payday.
At a typical payday shop, a person short on money before payday borrows, $255 by writing a postdated check
If the check does not clear, the lender threatens to enforce or does enforce the bad check statutes, even though the Illinois laws do not apply to a postdated check
known to be worthless when issued, both because such a check is not within the terms of the statute(17) and because the lender intends to extend credit, and does not rely on any representation by the borrower that there is money or will be in the account, and understands that there is a high degree of risk.
In Illinois, the bad check statute does not even apply to a postdated check
which the lender obviously knows is worthless when issued.
The postdated check
has no value except as a means of coercing payment.