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 cheap personal checks.





Latest News:




Warning: MagpieRSS: Failed to parse RSS file. (syntax error at line 1, column 0) in /home2/jsteiner/public_html/scholarlyarticles.org/personal-finance/magpierss/rss_fetch.inc on line 238
Site:

Warning: Invalid argument supplied for foreach() in /home2/jsteiner/public_html/scholarlyarticles.org/personal-finance/inc/ads-body.inc on line 34


Site: news - Google News
This RSS feed URL is deprecated
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news Four cops shot in South Carolina, suspect in custody - Fox News

Fox News

Four cops shot in South Carolina, suspect in custody
Fox News
Authorities responded to a domestic call, but the suspect had already fled the scene on foot when they arrived, Faris said at a Tuesday news conference. K-9 units were sent to the scene when McCall fired his gun just after 1 a.m., striking one of the K ...
Four cops shot during manhunt in South CarolinaCBS News

all 101 news articles »
Trump blames Democrats for looming government shutdown - NBCNews.com

NBCNews.com

Trump blames Democrats for looming government shutdown
NBCNews.com
President Donald Trump pre-emptively blamed Democrats for the prospect of a government shutdown, pointing to party leaders' demands regarding an immigration deal just four days before funding is set to run out. "The Democrats want to shut down the ...

and more »
Trump Russia: Bannon 'ordered to testify to grand jury' - BBC News

BBC News

Trump Russia: Bannon 'ordered to testify to grand jury'
BBC News
Steve Bannon, former chief strategist to US President Donald Trump, has been summoned to testify before a grand jury, US media report. He was reportedly subpoenaed by former FBI director Robert Mueller, who is leading an inquiry into alleged collusion ...
Bannon Is Subpoenaed in Mueller's Russia InvestigationNew York Times
House committee to question WH Communications Director Hope HicksNBCNews.com
Steve Bannon, Corey Lewandowski to testify this week at House Intel CommitteeFox News
The Guardian
all 236 news articles »
Recode Daily: Facebook's breakup with news, explained - Recode

Recode

Recode Daily: Facebook's breakup with news, explained
Recode
Here's a round of responses to Facebook's move away from news: On Friday, CEO Mark Zuckerberg announced that the social media site will prioritize content from friends and family over content from brands and professional publishers; live and news video ...

Trump's Phony 'Fake News' Claims - FactCheck.org

Trump's Phony 'Fake News' Claims
FactCheck.org
President Donald Trump often dismisses news stories or media outlets that he doesn't like as ?fake news.? How often? A database of his public remarks contains 320 references last year to ?fake news.? Usually, it's a general complaint about news ...

and more »
Neighbors describe shock of learning 13 siblings allegedly held captive by parents - CBS News

BBC News

Neighbors describe shock of learning 13 siblings allegedly held captive by parents
CBS News
A married couple near Los Angeles is accused of holding their 13 children captive in their home and are facing charges of torture and child endangerment. Police say they were tipped off by a teenage daughter after she escaped from her parents, David ...
Turpins: The 'happy family' at centre of torture allegationsBBC News
13 siblings ages 2 to 29 'held captive' by parents, some shackled, officials sayABC News
California parents arrested after 13 children found shackled, held captive in their Perris homeNBCNews.com
Fox News -New York Times -Nixle
all 382 news articles »
Carillion directors to be investigated - BBC News

BBC News

Carillion directors to be investigated
BBC News
The government has ordered a fast-track investigation into directors at the failed construction firm Carillion. The UK's second biggest construction firm went into liquidation on Monday, after running up losses on contracts and struggling with heavy ...

and more »
Sneezing myths and facts - BBC News

BBC News

Sneezing myths and facts
BBC News
Sneezing is an involuntary reflex that all humans have but we still understand relatively little about. Following on from the news that stifling a sneeze by clamping your nose and mouth shut can cause serious physical damage, we explore some sneezing ...

and more »
Kim Wall death: Danish prosecutors say murder was planned - BBC News

BBC News

Kim Wall death: Danish prosecutors say murder was planned
BBC News
Danish prosecutors have charged inventor Peter Madsen with murdering Swedish journalist Kim Wall and will attempt to have him jailed for life. Her dismembered remains were found at sea on 21 August last year, 11 days after she interviewed him aboard ...
Kim Wall murder: Danish inventor formally charged in 'unusual and extremely gross' caseFox News

all 82 news articles »
Pope feels 'pain and shame' over Chile sex abuse scandal - BBC News

BBC News

Pope feels 'pain and shame' over Chile sex abuse scandal
BBC News
Pope Francis has said he feels "pain and shame" over a sex abuse scandal which has rocked the Catholic Church in Chile. The Pope also asked the victims of sexual abuse committed by priests for forgiveness. He made the remarks during his first official ...
Pope begs forgiveness for 'irreparable' harm from sex abuseABC News

all 468 news articles »

MORE RESOURCES:

Warning: MagpieRSS: Failed to parse RSS file. (syntax error at line 1, column 0) in /home2/jsteiner/public_html/scholarlyarticles.org/personal-finance/magpierss/rss_fetch.inc on line 238
Site:

Warning: Invalid argument supplied for foreach() in /home2/jsteiner/public_html/scholarlyarticles.org/personal-finance/inc/rss.php on line 9
Site: personal finance - Google News
This RSS feed URL is deprecated
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news Personal Finance for Those Who Don't Have a Clue - New York Times

New York Times

Personal Finance for Those Who Don't Have a Clue
New York Times
Chelsea Fagan sets herself a high bar in writing ?The Financial Diet? (Henry Holt, $19): She wants to prove to people who know little about personal finance that investing is both vital and not all that difficult. Does she deliver? Yes, and ...

Kiplinger's Personal Finance: Seven steps to keep your data secure ... - Richmond.com

Richmond.com

Kiplinger's Personal Finance: Seven steps to keep your data secure ...
Richmond.com
Nearly half of consumers surveyed recently reported being a victim of fraud in the previous year ? a far higher tally than earlier surveys indicated.

and more »
The best of 2017 in personal finance advice - Washington Post

Washington Post

The best of 2017 in personal finance advice
Washington Post
But we should remove the stigma of young adults returning home as a financial embarrassment. It is not, especially if parents allowed or encouraged a student to attend a college that necessitated some heavy borrowing. ? ?Sales are bait, and you have ...

Some States Fall Short When Educating High School Students About Personal Finance - Forbes

Forbes

Some States Fall Short When Educating High School Students About Personal Finance
Forbes
The Center for Financial Literacy at Champlain College recently ranked U.S. states on the personal finance education offered in high schools. The center published its third report card in an effort to raise awareness about the state of personal finance ...

JAY-Z's '4:44' Inspired the Personal Finance Book 'The Wake Up ... - Billboard

Billboard

JAY-Z's '4:44' Inspired the Personal Finance Book 'The Wake Up ...
Billboard
JAY-Z's latest album 4:44 was mired in emotion, as a mature JAY 'fessed up to the mistakes of his younger and older self. Beyond the introspective cuts, Hov presented himself as a mentor, dispensing financial advice on "The Story of OJ" and "Family ...
Ash Cash Flipped JAY-Z's "4:44" Into Financial Self-Help BookHipHopDX

all 7 news articles »
MoneyLion raises $42M to grow its personal finance platform for the ... - TechCrunch

TechCrunch

MoneyLion raises $42M to grow its personal finance platform for the ...
TechCrunch
MoneyLion, the part lending, part savings and part wealth management app targeted at the financial middle class has raised $42M in Series B funding.This..
Personal finance app MoneyLion hunts down $42 million in fundingNew York Business Journal
MoneyLion, a personal finance startup, raises $42MAmerican Banker

all 10 news articles »
Liz Weston: What good financial advice looks like - WTOP

WTOP

Liz Weston: What good financial advice looks like
WTOP
Many Americans believe, incorrectly, that their financial advisers already are required to act in their clients' best interests. In reality, most are held to lower standards. Asking advisers to disclose their conflicts of interest is always a good idea ...

and more »
This is how Americans are increasingly going to wreck their already pitiful finances - Moneyish

Moneyish

This is how Americans are increasingly going to wreck their already pitiful finances
Moneyish
People take out personal loans for a variety of reasons ? everything from debt consolidation (the top reason) to buying a trip to stocking their closet for the season. Sometimes those reasons make sense, but other times they don't. Here's what to take ...

How to Actually Get Better at Personal Finance in 2018 - Social News Daily

Social News Daily

How to Actually Get Better at Personal Finance in 2018
Social News Daily
Why is this? We're just days away from a new year (or if you're reading this in 2018, happy new year!). We've got to make an actionable plan if we're going to make a difference in our own financial lives this year. There's a famous quote attributed to ...

Let's all be more proactive with personal finance in 2018 - Hometownlife.com

Hometownlife.com

Let's all be more proactive with personal finance in 2018
Hometownlife.com
I first want to take this opportunity to wish you and yours a very happy, healthy and prosperous New Year. I also want to thank you for the privilege of being able to write this column and help you with the challenges we all face when it comes to ...

Home | Site Map | Resource Links