Check 21

Some Straight Answers

The Check 21 Act is a new law passed by Congress to improve the overall efficiency of the nation's payment system. The Check 21 Act will allow checks to be processed faster than ever. This law became effective October 28, 2004.

How Will Check 21 Benefit Me?

	Faster check clearing – funds may make their way through the system quickly and reduce the time you'll wait for checks to clear.
	Improved check fraud protection – faster settlement of checks means fraudulent activity can be detected sooner.
	More secure – Check 21 will help ensure the continuous flow of money in the event of natural and other disasters, like 9/11.
	Fewer delays – checks transferred electronically may result in fewer transportation delays due to severe weather.
	Faster error resoultion – several consumer protections are built into the Check 21 Act to ensure the accuracy of your account.
	Deposits may post faster – with payments entering the collection stream faster, funds may be posted to the depositor's account quicker.

Key Points Regarding Check 21

	Substitute checks are the legal equivalent of the original checks for all purposes.
	Copies of checks and substitute checks are always available.
	It's always a good idea to review your bank statements monthly.

What Is A Substitute Check?

It is a legal copy of your check that can be used as proof of payment. It includes an exact image of the front and back of your check plus other identifying information. Please see the example of the front of the check to the right.

Will Check 21 Reduce Float Time?

Yes. Funds may make their way through the system very quickly. Now more than ever, make sure you have funds available in your account before you write a check to avoid overdraft charges.

Will I Always Receive A Substitute Check When My Original Is Not Available?

Not always. Some retailers and other businesses may choose to convert your check into an electronic ACH payment. This means the original check is not returned to the bank. Instead, it will appear on your statement just like a debit card item.

What If I Need To Prove I Paid For Something?

No problem. Substitute checks are treated the same as the original check under both state and federal law. If you need a copy of your cancelled check, just ask. We can provide you with a copy.

What If There Is An Error With A Substitute Check?

For your protection, we will resolve any issue or re-credit your account, usually within 10 working days of a claim involving a substitute check received by consumers. More information is available at your local Peoples Bank Store.

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