Check 21 act: Checks to clear more quickly soon!

[Garion]

For all of you who write checks a few days before payday, hoping they won't clear before the money comes in, a new federal act takes effect on October 28th. This act will allow for banks to exchange check images electronically instead of shipping around the actual paper checks.

The net result of this is that your checks will probably start clearing a lot faster. Banks will likely start scanning checks they receive in the branch and ship the images off to clearinghouses within hours of when they were received.

Federal Reserve Board - Check Clearing for the 21st Century Act

- G

 

[Phoenix86]

It'll likely take time for the banks to dev. systems around this, but be asured it's in their interest to do so. 🙂

Your float is about to be popped.

 

[kranky]

I predict a field day for people who alter checks to show a bigger amount or to change the payee. Without the paper check to prove it was altered, how do you prove fraud?

 

[MikeyIs4Dcats]

zis has gots to be a r3p0st

 

[ggnl]

Originally posted by: MikeyIs4Dcats
zis has gots to be a r3p0st

so now we can cry about reposts without actually knowing if it's a repost?

 

[gotensan01]

Originally posted by: ggnl

Originally posted by: MikeyIs4Dcats
zis has gots to be a r3p0st

so now we can cry about reposts without actually knowing if it's a repost?

LOL, I guess so.

Originally posted by: kranky
I predict a field day for people who alter checks to show a bigger amount or to change the payee. Without the paper check to prove it was altered, how do you prove fraud?

It would have to be the banks that commit the fraud. The banks get the actual, physical check when someone goes to deposit/cash it. Then the bank goes and scans it. If a teller altered a check, I'm sure it could be easily found and fixed.

 

[Garion]

Originally posted by: Phoenix86
It'll likely take time for the banks to dev. systems around this, but be asured it's in their interest to do so. 🙂

Your float is about to be popped.

Actually, the act was passed in October 2003, so the banks have had a year to get ready for it.

- G

 

[zixxer]

it's about time..


I LOVED it when the stupid slob lady in front of me wrote a check to walmart (holding up the line for 5 minutes as she wrote the check) just for the cashier to quickly scan the check; and hand it back to the slob lady. The slob was like "WTF WTF did you just do" the cashier was like "electronically submitted your check".. the slob went "WHAT!!?? there's no money in there i dont have my state check yet !!"

that what she gets for spending money she doesnt have

 

[lightpants]

Many banks are already starting this - almost burnt me with my mortgage check last month😱

 

[ElFenix]

i hate people who write checks.

 

[kranky]

Originally posted by: gotensan01

Originally posted by: kranky
I predict a field day for people who alter checks to show a bigger amount or to change the payee. Without the paper check to prove it was altered, how do you prove fraud?

It would have to be the banks that commit the fraud. The banks get the actual, physical check when someone goes to deposit/cash it. Then the bank goes and scans it. If a teller altered a check, I'm sure it could be easily found and fixed.

Let's say you send my neighbor a check for $100. I steal his mail, change the payee to myself, and change the amount to $1,000. Now I cash the check. The bank takes a picture of the check, submits it electronically, and destroys the paper check.

You see a $1,000 withdrawal and alert your bank.

They have a picture of a check with your signature, payable to me for $1,000. You say the check got altered. But the check is destroyed. Where do we go from there? Do you think the bank will give you $1,000 back because you claim the check was altered? Where's your proof?

 

[Hammer]

the whole system needs to be revamped, although yes, this is an improvement i guess.

 

[bsobel]

They have a picture of a check with your signature, payable to me for $1,000. You say the check got altered. But the check is destroyed. Where do we go from there? Do you think the bank will give you $1,000 back because you claim the check was altered? Where's your proof?

Quote "A bank that paid a warranty claim or provided an indemnity or expedited recredit for a substitute check that it received from another bank could, in turn, bring a warranty, indemnity, or interbank expedited recredit claim against the bank that transferred the substitute check to it and thereby pass the associated loss back to the reconverting bank.5 Thus, if there is a duplicative check payment involving a substitute check, a substitute check indemnity claim, or a breach of the legal equivalence warranty, the Check 21 Act places ultimate responsibility on the reconverting bank.6 The Check 21 Act also requires the reconverting bank to identify itself as such and to preserve the indorsements of parties that previously handled the check in any form."

Looks like the reconverting bank would have to archive the original for some time and that is where the issue would be unwound to....

Bill

 

[rudder]

Hah, my credit union just got an ATM in the last few months, it will be years before they have this capability.

 

[MikeyIs4Dcats]

Originally posted by: ggnl

Originally posted by: MikeyIs4Dcats
zis has gots to be a r3p0st

so now we can cry about reposts without actually knowing if it's a repost?

he's too lazy to search so I didn't bother either.

Repost