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CHECK 21

What you should know about your checks in the 21st century.

A new federal law went into effect on October 28, 2004 to facilitate the electronic exchange of checks, which permits quicker and safer processing of checks. Finanacial institutions are now allowed to treat an electronic image the same as the original check itself. The law is called the Check Clearing for the 21st Century Act (Check 21).

How will the law affect you?

When your check clears, a processor will take a picture of the check, which under the new law, becomes a legal substitute check containing all of the information of the original. The substitute check can then be transported electronically to depository banks rather than transporting by truck or plane. This new efficiency will allow checks to clear faster, reduce check fraud, and increase security and saves costs for the entire financial industry.

What is a substitute check?

Starting October 28, 2004 if you request a copy of your original check, you may receive a substitute check. The substitute check will contain an image of the original check and will bear the legend: "This is a legal copy of your check. You can use it in the same way you would use the original check." The substitute check is required to accurately represent all information on the front and back of the original check.

What if I feel the subsitute check doesn't accurately reflect the original check?

Check 21 provides consumers with specific rights regarding disputes. If you feel that your substitute check is inaccurate, contact your account provider as soon as possible. Your provider will investigate your claim and make you aware of any necessary adjustments. The adjustments could potentially include recrediting your account.

Checks will clear more quickly.

With this new technology the time between the money leaving your account and reaching the recipient of the check will be reduced. Now more than ever make sure there is money in your account before writing out any checks


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Identity theft is a crime that is growing quickly, below are a few guidelines to help keep you and your family safe.

Don't just throw unwanted mail into the garbage!!

Don't keep old credit cards or ATM cards around!

Don't put sensitive information on your checks!

Be alert on telephone scams.

Be cautious on the Internet.

General Precautions

 

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