|
If you think you can get away with a little float,
think again. It used to be tempting to write a share
draft/check without actually having the funds in your
account to cover it—until now.
The Check Clearing for the 21st Century Act
(Check 21) will cut the time it takes a check
to clear from days to hours. So if you need to change
your checking habits, do so before it’s too late.
Check 21 was signed into law on Oct.
28, 2003, and becomes effective Oct. 28, 2004. It’s
designed to foster innovation and efficiency in the
payments system by reducing some of the legal barriers
to check truncation. Truncation means removing an original
paper check from the check collection or return process,
just as credit unions successfully have done for years.
Supporters say it could reduce the cost of trucking
and flying the paperwork cross-country by $2 billion
a year.
The law eases the electronic exchange of checks by
making electronic check processing voluntary and not
mandatory. The law mandates that all institutions accept
a substitute check (the paper copy of an electronic
check file), but doesn’t mandate that all financial
institutions accept electronic checks.
The bottom line: These changes should
be transparent to you most of the time. If your
checking habits need improvement, brush up—before
the float sinks. |
It’s the perfect time to sign up for
Overdraft Protection.
Your APGFCU Visa® Credit Card is the best way to
protect your checking account from overdraft charges
and bounced checks. Just tell us to assign your account
and you’ll be protected up to your available credit
limit.
Don’t have an APGFCU Visa?
Apply today.
Use
our
Online Application
or call 410-272-4000 Option #4. |
