How Will Check 21 Affect You? by:Shannon Jarvies
You may already be familiar with Check 21, a federal law that goes into effect on October 28
, 2004. If you're like me, this may be something you hadn't heard about until just yesterday. The Check Clearing for the 21st Century Act, otherwise known as Check 21, is the process of turning the checks your write into images and transmitting them by computer.What does this mean to you?
Expect the time your check clears to decrease drastically. If you live paycheck to paycheck and often count on a one or two day "grace period" to get funds into your account after paying bills, you'll need to re-organize your budgeting process. Checks will clear in a matter of hours now, not days.
You will no longer be getting your cancelled checks back with your bank statement. If you get anything at all, it will be a "substitute check" which is a certain kind of copy of your original check.
You may be charged extra fees. It's possible that by using this method, your check will be paid twice: once with the original and once with the scanned image. Or there may be an error made in the amount a check was written for in the process of turning an paper check into an electronic check.
What you should do:
Re-organize your budget. You have to make sure that you have the funds in your account to cover every check you write to avoid bouncing any checks.
Request substitute checks. You will not be entitled to a credit to your account if an error has been made unless you have a substitute check.
Balance your checkbook. If you are not in the habit of balancing your checkbook with your bank statement each month, you need to start. This will ensure that you'll find any mistakes that may have been made.
Learn more. Consumer's Union did not support Check 21. Find out why and learn more about Check 21 HERE
About the author
Shannon Jarvies is a WAHM with five beautiful children and a wonderful husband. She also runs a Debt Management Website where you can find resources on how to eliminate debt including debt consolidation, budgeting help and money saving tips and ideas.
shannon@consolidationdebtfree.com How Web Masters Can Start a Home Based Business Using Credit Cards by:Claire Bowes Credit Repair Companies and Credit Counseling by:Jeanette Joy Fisher The Benefits of Starting A Home-Based Business by:Mal Keenan How To Evaluate A New Business Opportunity by:Mufad How to Take Your Stalled Projects to the Finish Line by:Cathy Goodwin, Ph.D. Internet Marketing: Are You Penny Wise And Dollar Foolish? by:Dean Phillips How To Choose a Great Camera Phone by:Syd Johnson Prepaid cell phone plans: Great option or Last Resort? by:Syd Johnson Secondary Mortgage Market Sets the Standards and Practices for Mortgage Lending by:Syd Johnson Where Can I Get a Home Loan? Here Are The Top 5 Mortgage Lending Institutions by:Syd Johnson Your Budget And Taste For Gadgets Will You Determine What Type Of Cell Phone Accessories You Need by:Syd Johnson Save Money on Cell Phone Offers: Beware of Family Plans by:Syd Johnson Free Cell Phone Offers - A Win-Win Situation? by:Syd Johnson