How Check 21 Affects You

The Check 21 Law is the new federal law for financial institutions and has taken effect last October 28, 2004.

Before the Check 21 law was enacted, your paper check had to be physically transported from where the check was paid out before it could be deposited to the financial institution. Now, even if it has always been prudent for you to keep money in your account to pay for the checks you've issued, this law makes it imperative.

Here are some of the other effects The Check 21 Law will have on you and fellow consumers.

You will no longer receive the original paper checks you issued, as your bank won't have these.

The probabilities of your checks clearing sooner have increased. If you don't have funds to cover this amount, your check will bounce. So don't make out a check when your checking account has insufficient funds, you'll be severely penalized.

On the minus side is, you will not be able to access the funds you've issued a check for, as the new law doesn't include shorter check hold times.

Because of the shorter time in process the checks, your banks will be able to save money in processing your checks, but they are not required under the law to share these savings with you.

For each kind of copy, your check will have different rights attached with it. For instance, Check 21 has created a new paper copy of an electronic image of a check and is called the "substitute check." This substitute check can be a legal equivalent of the original check, and right attached to this, is that only a substitute check triggers your right to recredit of disputed funds.

The regular copy of a check does not have this same kind of protection. If you ask for a copy of a check, your bank can send you an ordinary copy instead of this special kind of copy which triggers legal rights and protections unless you specifically ask for the substitute check.

A second bank other than your issuing bank can have your original check and under this law, has the right to decide if it will keep or destroy your check. Before enactment of Check 21, your own bank could decide how long they should keep your original checks, if you didn't get these back together with your monthly statements. Under Check 21, the bank of the person you wrote the check to may decide when to destroy your check.

Under the Check 21 law, you can have funds of up to $2,500 recredited to the your account in 10 business days if the check is paid twice, paid for the wrong amount, or otherwise paid in error. However, a gray area exists, does this new right apply when a paper substitute check is used in the processing of the check but is not returned to the consumer? The regulations apply this recredit right only to the consumer who was provided with a substitute check. If the check was electronically processed by all the banks it was routed through, and the consumer was not provided with a substitute check, then the check remains under state check law.

If you want to safeguard your rights, you can request for a return of "substitute checks" you issued together with your monthly checking account statements. One possible difficulty lies in the amount you may pay in getting these checks back, change banks if these are too high!

In essence, what the Check 21 federal law has done is shorten the gap financial institutions take in processing checks. This new law has enabled financial institutions to scan paper checks and to send images of these same checks for electronic processing. This law is an efficient and faster way to process check payments.

If you need information that is more detailed about your rights on the Check 21 law, access the Federal Reserve Bank website and request for these materials:

Consumer Guide to Check 21 & Substitute Checks and what you should know about your checks.

John Thomson is webmaster at business personal checks where check information is a click away. Specializing in business personal checks.

taxi from O'Hare Bismarck .. Lockport Chicago limo O’Hare

In The News:

You can reset your internet router remotely if you're not home when your power goes out. Kurt "CyberGuy" Knutsson explains how this can be done.

The EO Canopy is a self-sustaining, solar-powered camping platform designed to provide all the comforts of home while completely off the grid.

Experts say hackers who used to focus on Windows operating systems are increasingly targeting Apple IDs as part of a new phishing campaign.

Unitree, a Chinese robotics company that developed a backflipping robot, has now introduced a humanoid robot capable of doing a side flip.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

According to the FBI, cybercriminals are sending extortion letters, threatening to release victims' sensitive information unless a ransom is paid.

FireSat is a satellite project designed to detect and track wildfires early, aiming to detect a fire that's the size of a classroom within 20 minutes.

Tech expert Kurt “CyberGuy" Knutsson reports that researchers have uncovered a Chrome vulnerability used in a cyber espionage campaign.

Preserving voicemails securely on Android: Tech expert Kurt “CyberGuy" Knutsson reveals easy methods to keep memories alive forever.

This phishing kit bypasses 2FA via session hijacking and real-time credential theft. Kurt “CyberGuy" Knutsson offers four ways to stay safe from Astaroth phishing attacks.

Tech expert Kurt “CyberGuy" Knutsson discusses Joby Aviation and Virgin Atlantic planning to launch 200-mph U.K. air taxis linking airports and cities.

Fake Apple virus warnings, security alerts and messages are tactics used to prompt you to call a number or click on a malicious link. The CyberGuy explains how to protect your devices.

The combination of artificial intelligence and neuroscience allows a paralyzed man to manipulate a robotic arm by using his brain to imagine movements.

With the help of artificial intelligence, sophisticated fraud techniques emerging today are virtually undetectable to the untrained eye.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents

If you need to free up space on your Mac, consider deleting duplicate photos in your image library. Apple makes it easy to do, and the CyberGuy explains the process.

Microsoft is discontinuing Skype in May after 22 years of service. Kurt the CyberGuy addresses other options for internet-based phone and video service.

Tron 1, a Chinese company's two-legged robot, is versatile and can walk, roll and pivot, even on rough terrain. Tron 1 stands 33 inches tall and weighs 44 pounds.

Hackers are tricking people into installing password-stealing malware by making them press keyboard shortcuts under the pretense of proving they're not bots.

Saving the voices of loved ones can be a comforting way to keep alive memories. Kurt "the CyberGuy" Knutsson explains how to preserve voicemail messages.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

The FBI warns that some free online document converters load malware onto people's computers, making their private information vulnerable to attack.

Toyota's compact electric FT-Me is designed to tackle challenges of city living while offering an accessible and eco-friendly transportation solution.

Kurt “CyberGuy" Knutsson says 23andMe's bankruptcy raises data privacy fears: Opt out, download and delete data now.

UBTech and Zeekr unite with AI robot swarms to make car manufacturing faster and smarter. Tech expert Kurt “CyberGuy" Knutsson explains how the process works.

How Check 21 Affects You

Personal Finance