Check 21 - Starts Thursday, here come the "bouncing" checks.

If Check 21 starts Thursday, does the bouncing start Friday?

The law, which takes effect Thursday, will let banks transmit images of checks electronically instead of transporting them across the country. As a result, checks are expected to clear faster, reducing the "float" between the time you write a check and the time the money is withdrawn from your account.

But the change won't affect the length of time banks are allowed to hold deposits, which is covered under a different law. Consequently, the checks you write to pay your bills could clear while there's still a hold on your paycheck, triggering overdraft charges.

That prospect has a lot of folks crying foul. Consumers Union, an advocacy group, has received more than 16,000 signatures on an online petition expressing concerns about Check 21.

www.usatoday.com... .htm

Banking industry officials say the change will reduce the amount of time banks hold deposits. Most banks already hold deposits for shorter periods than the law allows, says John Hall, a spokesman for the American Bankers Association. Check 21 will shrink hold periods even more, he says.

In addition, a provision in Check 21 directs the Federal Reserve Board to review the rules governing deposit holds and submit the results to Congress. If the study finds that checks are clearing faster, the Fed will amend rules governing the maximum hold periods, Fed spokeswoman Susan Stawick says.


sign the petition against Check 21 : cu.convio.net...

ugh, I so did not need to hear this news. My checks bounce with the float time lol.

Good article elevatedone.

It's a consumer rip off. period.
Many CC Co.s have stopped sending cancelled checks back to you already...tracking down or proving payments will be another fee generating service 'provided' by the banks.

I don't write that many checks...


4 per month and I only write them and send them well after my money is in the bank.. I'm not too worried about this, as far as that goes.

Are any of you going to sign the petition ?

This one is easy to solve: Don't write a check if the money isn't in your account.

Isn't that what we're supposed to do? Actually writing checks is becoming less common, anyway.

Welcome to the 21st century America. You now join the rest of the world in having an electronic rather than paper banking system.

Now if you would only embrace debit cards (I think y'all call em check cards)
the lines at the supermarket might move a little faster.

Cmon Americans be honest. Don't write checks if you don't have the money in your account. It is lieing and stealing! Get a debit card so you won't be tempted to lie. I have one.

and Content Manager OnDemand software along with the desire for every bank in the world to get you to use a credit card instead of checks so that they can eliminate the federal reserve clearing houses. If you don't believe this, just wait and watch.

Originally posted by RedBalloon
This one is easy to solve: Don't write a check if the money isn't in your account.

Here's a better way - don't use checks. Go to the bank, withdraw the cash and use that. If you need to mail a payment, get a money order - They only cost 25c in places like Fred Meyers.

Alternatively you could just carry on using checks, and eventually you will forget you have written one, or assume that it has already gone through only to get screwed over by the banks' overdraft fees.

Originally posted by GrndLkNatv
and Content Manager OnDemand software along with the desire for every bank in the world to get you to use a credit card instead of checks so that they can eliminate the federal reserve clearing houses. If you don't believe this, just wait and watch.

A debit card is NOT a credit card. The money comes out of your account at purchase, the transaction fee is less than a cheque, and no more balancing chequebooks.

It's not a conspiracy America, its EFFICIENCY. Remember waaay back when when you guys were actually leaders in this?

[edit on 26-10-2004 by deevee]

I don't have anything against Checks, Credit or Debit Cards or Direct Deposit - even though the latter ones may be a precursor to the mark of the Beast - they, themselves are not the mark.

But, I get the feeling that this particular option is a big old Red Tape SNAFU just waiting to happen...

But the change won't affect the length of time banks are allowed to hold deposits, which is covered under a different law. Consequently, the checks you write to pay your bills could clear while there's still a hold on your paycheck, triggering overdraft charges.

That prospect has a lot of folks crying foul. Consumers Union, an advocacy group, has received more than 16,000 signatures on an online petition expressing concerns about Check 21

Yep, needs to go both ways... The banks want their money asap, but want to hold on to yours.... that's bull#.

Originally posted by Bout Time
Many CC Co.s have stopped sending cancelled checks back to you already...tracking down or proving payments will be another fee generating service 'provided' by the banks.

I pay nearly everything electronically. Most bills hit a CC which I then pay off each month from my bank. Creates a nice little paper trail, and I only keep enough money in that account to clear transactions as needed, so the security of my bank information is not a concern. I have not been getting check stubs from my bank since moving to NY two years ago.