How long can someone hold my check?

[Mournblade]

What is the name of your state? California

Hello forum.

I recently purchased a car, and was told I needed to give the dealership a check for $700 as part of my downpayment, that they claimed would be collected within 28 days, and it has now been 40 something days and still no deduction.

I want to know if there is a legal limit to the amount of time they can hold that check for? If they told me it would be taken out within 28 days and was not, are they contractually obligated to that and not able to deduct it after the given amount of time? If a deduction comes in the next month? year? am I responsible for it? or can I stop payment at any time on that check now, and save myself the worry and hassle of constantly assuring that 700 is in my account for this deduction that could come "at any time" I assume.

What should I do?

[Veronica1228]

Originally Posted by Mournblade

What is the name of your state? California

Hello forum.

I recently purchased a car, and was told I needed to give the dealership a check for $700 as part of my downpayment, that they claimed would be collected within 28 days, and it has now been 40 something days and still no deduction.

I want to know if there is a legal limit to the amount of time they can hold that check for? If they told me it would be taken out within 28 days and was not, are they contractually obligated to that and not able to deduct it after the given amount of time? If a deduction comes in the next month? year? am I responsible for it? or can I stop payment at any time on that check now, and save myself the worry and hassle of constantly assuring that 700 is in my account for this deduction that could come "at any time" I assume.

What should I do?

Checks are considered stale dated if they are older than 6 months. It used to be a year, but the length of time was shortened a couple of years ago.

However, your bank CAN decide to honor a check even if it is stale dated unless you place a stop payment on the item. Read your bank disclosures carefully, available at any branch, because it discusses this.

I don't recommend placing a stop payment on the check without contacting them first. You agreed to make this payment, and by stopping the check you will be reneging on that agreement. Just keep that $700 deducted from your check register and don't spend it unless you want additional worries.

[Mournblade]

Thanks Veronica, that helps. I think I'll just contact the dealership and order them to put the charge through, so this is just behind me and I won't have the worry.

[Veronica1228]

Originally Posted by Mournblade

Thanks Veronica, that helps. I think I'll just contact the dealership and order them to put the charge through, so this is just behind me and I won't have the worry.

You're welcome. Good luck and enjoy your new car!