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.
Batchtown Chicago prom limo .. Lockport Chicago limo O’HareHave you ever stopped to think about how your "mood"... Read More
Good money management needn't be difficult. In fact, there a... Read More
If you've been thinking about filing for bankruptcy, your best... Read More
Address labels are many things to many different people. If... Read More
When you received an energy (heating) bill last winter, were... Read More
During the last twenty years, banks have offered a number... Read More
Have you ever thought about what you are going to... Read More
If you, like most people, have not seriously considered what... Read More
Of course, these don't have to be done in any... Read More
You no longer look at the pictures of homes cause... Read More
Most consumers are aware of the importance of their credit... Read More
Have you seen the recent article on a new "green"... Read More
Would you be interested in freeing up 10% to 15%... Read More
My personal opinion is that in today's new economy, it... Read More
Well, dang! From what I've heard and read, it looks... Read More
The recommendations for military base closings have been released and... Read More
The lists of bank and savings accounts that are available... Read More
Many don't realize that our basic utility bills provide the... Read More
Between 15 - 20% of people in our country (UK)... Read More
Shopping for groceries is an inevitable fact of our ever... Read More
Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More
I've been sharing the following idea with people for a... Read More
Chapter 7The potential chapter 7 debtor should understand that a... Read More
Are your financial muscles well toned and healthy or flabby... Read More
ID theft is a major consumer concern, though there is... Read More
shuttle from Midway Munster are ..1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1.... Read More
You should thoroughly consider your business needs when selecting a... Read More
Reducing the clothing budget was a serious challenge for me.... Read More
Are you having problems with debt? Are you afraid to... Read More
ID theft is a major consumer concern, though there is... Read More
Confused about whether you can contribute to a Roth IRA?... Read More
Most Americans have been brought up to be concerned about... Read More
Do you struggle from week to week trying to make... Read More
If you've developed a household budget to get your spending... Read More
Budgeting. It's a word we're all familiar with. Everyone knows... Read More
Creating a budget can be a very difficult task. Although... Read More
Most consumers are aware of the importance of their credit... Read More
It is estimated that we, as consumers, waste an average... Read More
For most of us the process of getting out of... Read More
With interest rates being at an all-time low, I can... Read More
Saving may seem easier if you were saving for a... Read More
When you received an energy (heating) bill last winter, were... Read More
As the saying goes: "Buyer Beware". If you see ads... Read More
One of the biggest challenges facing black RELATIONSHIPS today are... Read More
Recently, many of these loyalty rewards programs have come to... Read More
Women are charged more for dry cleaning services. Don't fume,... Read More
Before buying personal or business checks you should inform yourself... Read More
The Check 21 Law is the new federal law for... Read More
With the A-level results coming out, the long wait for... Read More
Many don't realize that our basic utility bills provide the... Read More
Personal Finance |