Information about the new Check 21 law!

[crazytimes]

Heads up if you are someone who writes checks!

Watch out for bouncing checks. The Check 21 has taken effect and it could mean that your checks will clear much faster than you're used to. If you don't keep your checking account adequately funded, you may find non-sufficient funds fees piling up.

Check 21, shorthand for Check Clearing for the 21st Century Act, went into effect Oct. 28, 2004. It is designed to modernize the way checks are processed. The bank, or the company you sent the check to, can turn the paper check into an electronic image and speed its image and data through the system. In addition to saving the banking industry billions of dollars in transportation and processing costs, it will avoid situations where transportation grinds to a halt due to weather or more dreadful reasons such as Sept. 11.

I think it's a great idea because I am so sick and tired of writing a check out for a bill or a gift and having it deducted from my account weeks later.

On a side note, I can't stand when you give someone a check as a gift AND THEY DON'T CASH IT! My parents gave people checks for graduation gifts and some kept them for MONTHS without checking and it go to the point where my parents were ready to MOVE and close the accounts and they finally had to call up the people and say CASH THE CHECK!

I remember the SCHOOL did it too! My friends mother wrote a check to the school for a fundraiser and the school DID NOT CASH IT FOR MONTHS and she was in the same situation where she was moving and closing the accounts!

I did the same thing though...I made a charge with my debit card and they never charged me and eventually I had to close the account because I was moving...it was a small charge, about $4 but tough luck for them!

[Twinplets]

Originally Posted by crazytimes

On a side note, I can't stand when you give someone a check as a gift AND THEY DON'T CASH IT! My parents gave people checks for graduation gifts and some kept them for MONTHS without checking and it go to the point where my parents were ready to MOVE and close the accounts and they finally had to call up the people and say CASH THE CHECK!

I've known a few cases like that, usually it was with checks sent as bar/bat mitzvah gifts. Mom says the kid doesn't get the present until he/she writes the thank you cards, and kid doesn't write the cards. So the checks sit uncashed. Grrr.

[telos2000]

I like the fact that the bank will not be able to hold on to your money for ten days after you deposit something other than a payroll check. They get their money within three days at the least. They can read the "micr-number" and tell if the funds are available when you deposit the check. Now they will be forced to give you immediate access to the funds! Yee-Haw

[verwon]

That is definitely a nice feature. We had deposited my husband's student loan checks about a month ago and we had to pick up some things at Wal-Mart and our VISA check card wouldn't work. Turns out they were holding funds until the check cleared when you know darn well they can check almost instantly to make sure it is a legal check and the funds are there to cover it. This week I went in to deposit some survey checks and it was great, the money was available right away with no waiting.

I too think it is a great idea. We have a tenant who always pays late, always bounces checks and this way I will be able to know asap if it is good. Also, this might wake some of our youth up (college kids) to balance, not spend what they don't have, etc.

[telos2000]

Okay, it doesn't work with deposits. I sold my Mom's house and I deposited the check in her account to pay her room and board. The bank told me it would be eleven days before the money would be available. I asked, "What about this new law." Their answer was that they only participate on outbound transactions (i.e., checks that their customers write) and not inbound transactions.

I complained and said that this doesn't sound right. I checked my online status the next day and the funds were there and available. Sounds like the banks want their cake and eat it too!