Brave New World,...at the bank.

[xoxoxoBruce]

Check 21 is the name of new banking rules going into effect on Oct 28th,...like it or not.

The core of these changes is that the bank doesn’t have to move your check from the butcher’s bank, to your bank, before they take your money. No float, so don’t write that check until the money is there.

Write those checks carefully because there will be no more "stop payment".

Once this is up to speed (and it won’t take long) you won’t get your cancelled check back. You’ll get a “substitute check” and the bank where your check was cashed/deposited is supposed to destroy the original.

Since the checks you deposit are cashed almost instantly, you’re deposits should be credited to your account right away,.........BUT NOOOOOO. That’s up to the bank’s "check hold times" which are not affected by this law.

Your bank may ask you to sign a voluntary Check Truncation form. DON’T DO IT! If you sign it, you’ll lose some of the protections afforded you in this law. The biggest one is, if your check is converted to a “substitute check” more than once, (by *cough* accident), they have to credit the money back within 10 days. Unless you sign the form, in which case you’re looking at 45 days or more.

So check (pun) out the Federal Reserve link about and question your bank before you get burnt.