Have you heard of 21st Century Act, or Check 21* banking law?

[shance]

Looks like it has gone under the radar, and it it could potentially cause significant problems for small business owners and bank customers.

Any further information would on the law, please post here. The law apparently goes into effect today.

One of the mandates of the law is that it will now shred every check you have written, thus eliminating evidence and making it more difficult to track your transactions. (Kind of like our vote*)

And*, if you want to keep the check option (meaning you want to have your checks returned*) it costs an average of $100 - $150 A MONTH simply to have your checks returned to you.

Of course, they say they will grant you a copy of your check - then why not just send my original back?

Why go to the trouble of shredding and recording a document, when you can just send it back to me.

I have heard that even bank managers are not very happy with this law. I would imagine its going to invite a slew of complaints at their window.

Does anyone have further information on this bill?

Action needs to be taken on corporate tied legislation being passed through Congress without citizens knowing about these laws being quietly pushed through Congress, and there's motivation for such silence.

[flyingfysh]

1. it's not a problem for me

My bank makes copies of any checks I write available to me over the web, and the one time I had to show a cancelled check to someone, the copy worked just fine.

Your actual original check is gone, but you get a photocopy of both sides. This means that banking can be done without depending on airplanes which sometimes crash or run into buildings. The images are sent electronically.

[shance]

5. There's no logical reasoning for this bill that I can see.

Why not give the checks back? It costs more money to shred and re-copy these checks.

Not to mention they are recording these checks and putting them online. How safe are recordings of my checks online?

I think individuals need to realize how much more vulnerable this could ultimately make them and their bank account.

Furthermore, why does Congress have the power to make this decision that makes citizens more vulnerable and corporations less accountable? Because that is what this bill, by being enacted, is allowing.

[Out the Parasites]

2. I own my small business (employee of one) and I was shocked

when I heard about the new law. It's supposed to be for our protection from fraud. Now the funds will be transfered electronically when you present the check...so no more possibility of overdrafts, or at least less possibility. It's also suppossed to help with Identity Theft. I just called my business bank, Wells Fargo, and they will give the electronic copies of the check for free by request (over the phone, in person etc.) and in January I can access the electronic copies for free and print them off. No charge. Soon, they will automatically send me the electronic copies, just like the canceled checks.

[matt819]

3. Ask your bank

My bank sent me an informational flyer with one of my recent statements, which I didn't read because, let's face it, it doesn't really matter. It's a done deal.

On the one hand, checks you write go through much faster (which is happening anyway if your check is run through an automatic reader or otherwise converted to an automatic payment (my grocery store and the local convenience store chain do this). For those of us who sort of kind of depend on the float, this sucks.

However, and this I'm not sure of, checks you deposit should also go through quicker -- anyone confirm this? -- which means that money is more readily available. So, on the one hand it sucks, but on the other hand it doesn't.

Of course, this being the * administration, you can be pretty damned sure that the consumer is well and truly fucked, and so I'm not entirely sure those deposits will be as readily available as I might like to think. I can't see the bank giving up the opportunity for an extra day or two or interest on billions of dollars transiting the banking system on any given day.

Any bankers here on DU who can shed any light?

[shance]

7. Im finding many bank employees either don't know about it , or are

just now finding out about it. It's amazing and totally negligent in my opinion.

However, the bank employees are hearing about it now (and even though they had nothing to do with the enactment of it, they will be the recipients of all the wrath).

A friend of mine went to the bank earlier and an elderly women was in front of her with an empty envelope, panicked, wondering why her checks were missing, and had they cleared and was she going to be penalized?

Tell me, how is the internet and the wonderful world of technology going to help this elderly woman?

[DuctapeFatwa]

4. It does away with the "float" period, too. Bad news for check-to checkers

Many of the increasing number of Americans living "check to check" counted on a couple of days' "float" time for the bank to process their checks, allowing them to squeak through bill-paying without a returned check fee, useful if the bill is due on Thursday and you deposit your paycheck on Friday.

Getting rid of that will help the bank collect more bounce fees, and landlords and utilities will benefit by collecting more late fees and reconnection charges.

When all is said and done, most people need the bank much more than the bank needs them, and customers always have the option of taking their chances with the mattress and carrying their cash down to the convenience store to purchase money orders.

[steve2470]

6. official Federal Reserve Board link to new law FAQ's

http://www.federalreserve.gov/paymentsystems/truncation/faqs2.htm#ques5

edited URL and title for accuracy