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Floating checks be warned. Check 21 kicks in

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Floating checks be warned. Check 21 kicks in

Old 10-28-04, 02:31 PM
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Floating checks be warned. Check 21 kicks in

http://www.msnbc.msn.com/id/5880440/

A new era in banking begins
Law will eventually end ‘float,’ canceled hand-written checks

American Bankers Association
Beginning Oct. 28, consumers will receive "substitute" checks like this one instead of canceled checks from their banks.
By Bob Sullivan
Technology correspondent MSNBC

Updated: 11:02 a.m. ET Oct. 28, 2004Every night, millions of cashed checks fly around the country, headed for their home bank. Starting Thursday, technology will begin grounding many of those flights. And it may ground some consumers, too — those who try to sneak an extra day or two of "float" out of their checking accounts.

A new era in banking has begun as the Check Clearing for the 21st Century Act, commonly known as Check 21, takes effect. Banks will slowly get away from the business of flying checks around the country each night. Instead, checks will be cleared electronically, and often destroyed when they are cashed...
Now I wonder if banks will give you access to all your money that you deposit now that there is not clearing time to use as an excuse.
Old 10-28-04, 02:38 PM
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Re: Floating checks be warned. Check 21 kicks in

Originally posted by Jackskeleton
Now I wonder if banks will give you access to all your money that you deposit now that there is not clearing time to use as an excuse.
Not likely. My bank makes me wait until the next day to access a deposit when the deposit is a check drawn on the same bank. What's the deal with that?
Old 10-28-04, 02:39 PM
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That's what I'm wondering.

My wife deposited her work check this morning, but I'm sure it won't clear for several days.

Anyone know how this'll work?
Old 10-28-04, 02:39 PM
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People still write checks? The only thing I still write checks for is my rent. Debit card baby. The only way to fly.
Old 10-28-04, 02:39 PM
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Not likely. Banks suck.

I was once charged a fee for a check from another person that I deposited and was returned for NSF.

Like I had any part in the other person's account not having enough funds. Why should I be charged a fee? Charge it to that persons account.

Last edited by Canis Firebrand; 10-28-04 at 02:47 PM.
Old 10-28-04, 02:45 PM
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Good. Floating check writers suck. If you can't cover the check that day, then don't write one!
Old 10-28-04, 02:49 PM
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I don't have a problem with no more check floating. If they're going to take out my money instantly, why can't the deposit in the same timeframe?
Old 10-28-04, 02:49 PM
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I don't like the idea of the check getting destroyed - I'd like to get it back for records.
Old 10-28-04, 03:03 PM
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Originally posted by DonnachaOne
I don't like the idea of the check getting destroyed - I'd like to get it back for records.
They will be sending you a photo copy of your checks. My bank has been doing that for over a year already.
Old 10-28-04, 03:04 PM
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Originally posted by DonnachaOne
I don't like the idea of the check getting destroyed - I'd like to get it back for records.
I believe you still can- you just have to make a claim with each company you're writing a check to. Although I might be thinking of before this law was enacted.
Old 10-28-04, 03:12 PM
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Originally posted by Vryce
I was once charged a fee for a check from another person that I deposited and was returned for NSF.

Like I had any part in the other person's account not having enough funds. Why should I be charged a fee? Charge it to that persons account.
Here's a tip I learned while studying for the bar this summer: when endorsing a check, also write "without recourse." That should remove any liability you have if other party has insufficient funds.

At least, that's my understanding. We'll see if I'm right when the results of the bar exam are posted tomorrow morning.
Old 10-28-04, 03:28 PM
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Deposits relate to another law/regulation, so no, those won't clear immediately.
Still have to wait the 1-5 days or whatever for them [generally 1 day in-town, 2 days in-state, 5days out-of-state or something like that, depending on the bank.]

"But the change won't affect the length of time banks are allowed to hold deposits, which is covered under a different law. Consequently, the checks you write to pay your bills could clear while there's still a hold on your paycheck, triggering overdraft charges.

That prospect has a lot of folks crying foul. Consumers Union, an advocacy group, has received more than 16,000 signatures on an online petition expressing concerns about Check 21."

http://www.usatoday.com/money/perfi/...25-check_x.htm

So basically the check writer loses the use of his money immediately, the depositor can't access it for 1-10 days, and the bank hangs on to it for that time frame, loaning it out at high interest rates and profiting from it, while charging me fees to use the ATM or the teller or a NSF fee. Nice racket.

I haven't been getting cancelled checks back for years, but I use duplicate checks. Debit card is convenient, but more dangerous and easier to use than a check--writing a check makes you think about spending the money. And some of my bill-payees don't take payments online, or charge to paybyphone, so I still cut them a check.
Old 10-28-04, 03:34 PM
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Originally posted by Mopower
People still write checks? The only thing I still write checks for is my rent. Debit card baby. The only way to fly.
Indeed. But it does suck that banks can't post your deposits more quickly. My bank usually does pretty well, but there are times it seems like it takes forever.
Old 10-28-04, 03:44 PM
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Originally posted by Mopower
Debit card baby. The only way to fly.
Nope. Credit card baby. Earning points/miles/cashback. If you've got the money to cover your expenses via debit card, just pay it all at once at the end of the month to the credit card account, and earn something for your spending.




I'm in the middle of a "seven day hold" because we deposited a "bill pay" check from a local bank to an account we have at another bank. I should call the bank manager. There is some discretion with this.

It's not like our business account at the same bank doesn't have 3 times the amount of that check.
Old 10-28-04, 03:53 PM
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The two credit unions I have accounts with generally don't put any kind of hold or "waiting period" on any deposit that I make.

This "available the next [business] day" policy banks use is completely foreign to me.
Old 10-28-04, 03:55 PM
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Originally posted by heimerSWT
The two credit unions I have accounts with generally don't put any kind of hold or "waiting period" on any deposit that I make.

This "available the next [business] day" policy banks use is completely foreign to me.
Same with me. Infact the last time I was there they made it a point to tell me the funds were available right away.
Old 10-28-04, 03:55 PM
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Re: Floating checks be warned. Check 21 kicks in

Originally posted by Jackskeleton
http://www.msnbc.msn.com/id/5880440/



Now I wonder if banks will give you access to all your money that you deposit now that there is not clearing time to use as an excuse.
i think most banks give you the equivelant of an interest free loan on checks you deposit and take it back if the check bounces. I think it still takes around 1-2 weeks to process a check today.
Old 10-28-04, 03:57 PM
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Maybe they can start working on that $5.00 "conveinience" fee one of my utility companies wants to charge me for paying them on-line.....

bastards.....
Old 10-28-04, 04:01 PM
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Originally posted by Mopower
People still write checks? The only thing I still write checks for is my rent. Debit card baby. The only way to fly.
Originally posted by Y2K Falcon
Nope. Credit card baby. Earning points/miles/cashback. If you've got the money to cover your expenses via debit card, just pay it all at once at the end of the month to the credit card account, and earn something for your spending.


Agreed completely. Debit cards are generally for people that have bad credit and/or poor money management skills. Credit cards offer so much more in the way of benefits.

The other MAJOR issue is if someone steals your debit card, you are out that money immediately. You have to cry foul to your bank while they sit on your claim (and your money) for 30 days MINIMUM while they investigate. If your credit gets stolen, who cares? The bank is floating the stolen amount for 30 days while they investigate, not you





Originally posted by Y2K Falcon

I'm in the middle of a "seven day hold" because we deposited a "bill pay" check from a local bank to an account we have at another bank. I should call the bank manager. There is some discretion with this.

It's not like our business account at the same bank doesn't have 3 times the amount of that check.
Holds are negotiable depending on your bank. If they won't 'hook you up' I would say get another bank. I once had an emergency and needed a check for $10,000 to clear in a matter of hours. I had a 5 minute talk with the bank manager and explained my situation, she made 2 phone calls and 15 minutes later I had the check cleared. At the time, I did not have $10,000 in other assets at that bank (maybe $4,000 tops).
Old 10-28-04, 04:49 PM
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Originally posted by Mopower
People still write checks? The only thing I still write checks for is my rent. Debit card baby. The only way to fly.
Old 10-28-04, 04:54 PM
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Originally posted by heimerSWT
The two credit unions I have accounts with generally don't put any kind of hold or "waiting period" on any deposit that I make.

This "available the next [business] day" policy banks use is completely foreign to me.
At my bank they ask you if you would like it deposited as cash, if it's a payroll check. Very nice, in my opinion.
Old 10-28-04, 05:44 PM
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This is only good news for criminals making fake checks...

and photocopies of checks don't have the watermarks...

and banks are keeping the whole "putting a hold on checks you deposit" thing, so you still have to wait to have access to your money, but it can get taken out of your account faster. This is bad bad bad.
Old 10-28-04, 06:15 PM
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Originally posted by 4KRG
The other MAJOR issue is if someone steals your debit card, you are out that money immediately. You have to cry foul to your bank while they sit on your claim (and your money) for 30 days MINIMUM while they investigate. If your credit gets stolen, who cares? The bank is floating the stolen amount for 30 days while they investigate, not you
This happened to me, and my bank (credit union) put the money back in the day I went into the office. I signed some notary, they put it back in, no problems. I know BoA does the same thing.
Old 10-28-04, 06:20 PM
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Originally posted by DonnachaOne
I don't like the idea of the check getting destroyed - I'd like to get it back for records.
im too lazy to read the whole thread.. so someone else may have already said it

most good banks scan the checks and save them electonically before destroying them.. so you should still be able to view them if you use online banking.. and should be able to request copies of older checks that have been *destroyed*

but back to the original thought

people still write checks??!?!
Old 10-28-04, 06:23 PM
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Originally posted by Mopower
People still write checks? The only thing I still write checks for is my rent. Debit card baby. The only way to fly.
Credit card with points (Amazon Visa) and online bill pay through National City - I never have to write a check, even for rent - all for free. I highly recommend this set-up.

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