Posted on 10/28/2004 7:57:34 AM PDT by SmithL
NEW YORK (AP) --
New federal regulations designed to speed up the processing of checks went into effect on Thursday, and consumer advocates advised Americans to be more vigilant about monitoring their accounts.
The Check Clearing for the 21st Century Act -- better known as Check 21 -- will allow financial institutions to exchange electronic images of consumers' checks rather than transporting the actual paper checks around by air, land and sea.
As a result, checks that consumers write are likely to clear faster than before, so there will be less "float" between the time a check is written and when funds are debited from the account.
And consumers who still get their checks back with their statements -- about 36 percent of bank customers -- are likely to begin seeing images of some checks among the paper ones.
The changes won't happen overnight.
Forrester Research of Cambridge, Mass., estimates that it will take until the end of the decade for banks and credit unions to digitally process checks from start to finish. It said that some major banks won't have fully implemented image exchange processes until about 2008.
Still, consumer advocates warn that if check writers aren't careful, they could easily overdraw their accounts and end up paying late fees and other penalties.
(Excerpt) Read more at sfgate.com ...
But they aren't willing to speed up deposit-clearing times. How considerate. One deposit I made for my mom - business check in state - they told me it would clear in "about 10-12 days".
Its not a matter of opinion.
It all depends on which banks are clearing items.
Lets say the bank placed a hold for 5 days but the clearing process took 3 days. Some banks are faster than others...some states are farther away than others...so that happens.
Customers have the right by law to have the hold removed as soon as the funds are collected.
When you ask for a balance, instead of current balance ask for collected and available balance too.
If the collected balance is more then you can get your money in about 60 seconds or less...at least in our bank.
The clearing time is based largely on proximity from one bank to the other.
Good point, thanks!
No use fighting and arguing about this. You are wrong.
That's the problem with large banks - you guys don't give a rat's ass about the customer, and then you wonder why you are losing market share to customer-friendly regional banks and credit unions.
Thats the way it is.
No, that's the way the banks made it. Like P.J. O'Rourke once said, all this can be explained. What it can't be is believed.
I've done contracting and consulting to three major banks. I know the attitudes of the people, I know the B.S. that banks present. You can spin some of the folks. You ain't going to be able to spin me. Just like the nonsense that sorting transactions from largest to smallest prior to posting is somehow beneficial to the customer - when some pointy-headed MBA figured out they could dramatically increase overdraft charges by doing such.
If you want stuff to complain about I can give you real things to complain about...
But this isn't one of them.
Thanks for making my point for me. So, in other words, if a customer doesn't know how things work, your bank is going to sit on their money for a couple of days - instead of just releasing the funds as soon as they are there.
My mattress is looking more and more attractive with every one of your posts.
Checks are processed by the Federal Reserve, not the banks! It may depend on a bank's distance from the closest federal reserve, not the distance from bank to bank.
Note that you didn't counter my point but just tried to change the subject.
And I've got plenty of other banks things I can complain about ... but FR only has so much bandwidth.
Does this mean that the banks will no longer put holds on checks that are deposited into private accounts, as well? Or, is this a one sided, we win, you lose deal?
Its not a large bank nothing. Its the way banks in general work.
I have been unsuccessful in finding out who carried this bill in the USA Congress. If anyone knows, please post here.
Go ahead and stuff your mattress.
Dig a bunker and hoard food while you are at it.
If we want to get into the details of things I can...although I don't really feel like it.
The difference is the local out of state credit union might take 5 days but Wells Fargo or Bank One or whoever might not...
With this Check 21, everyone is a lot closer to being on equal footing.
It's not hard to get a copy from the bank.
This is really the point...
Call them farmers, and they'd get one.
"Different kinds of copies of a check will have different rights attached. Check 21 creates a new kind of paper copy of an electronic image of a check. This special kind of copy is called a "substitute check." Only a substitute check can be the legal equivalent of the original check, and only a substitute check triggers your right to recredit of disputed funds. A regular copy of a check does not carry these same protections. If you ask for a copy of a check, your bank may send you an ordinary copy instead of this special kind of copy which triggers legal rights and protections unless you ask for a substitute check."
Anybody wanna guess if the banks will charge you for ordering "substitute checks".
The checks come first though...... Hundreds and hundreds of bags of them. They get really heavy by the end of the night. The only thing I've ever flown that's stupider and heavier is newspapers to Martha's Vineyard. It takes surprisingly few newspapers to fill a baron to five hundred pounds beyond max gross weight. Paper is really heavy!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.