Are you one of those consumers who rely on that little bit extra of wait time you get between when you deposit or write a check, and when the check is cleared? You may want to become unaccustomed to this habit, as federal laws will be changing to allow banks to process checks without any lag time. This new act is called the Check Clearing for the 21st Century Act or Check 21. It was originally suggested after the terrorist attacks of 2001 when it was physically difficult to deliver copies of checks to banks because air traffic was grounded. The new act is being compared to an e-ticket you would receive on a plane. Your checking account will not rely on paper receipts anymore and the banks will now be able to make the check a digital image and process it electronically, cashing the check within 24 hours.
What will this new act mean to you? It means that if you write a check, counting on the little breathing room you used to have while it took a few days for the check to clear, you will now no longer have that time, and will probably overdraft or have to deal with bounced check fees. Predictions are that this new act will cost consumers over $170 million in fees every month totaling up to $2 billion a year!
Cancelled or bounced checks will also not be returned to the consumer, because banks are no longer required to return or keep these checks. However if needed, consumers can collect a copy of their check, by requesting a substitute check which will be generated from the computer image of the check and payment information. According to law, the substitute check you will receive should contain the statement: “This is a legal copy of your check. You can use it the same way you would use the original check.” This is considered as legal proof that a payment has been attempted.
What does this mean for Check City’s Check Cashing Program? It means that you as a consumer may need us more than ever. As you won’t have the layover time between when you write a check and when it gets cashed, you will now have to have the money needed for the check when you write it. Check City will still offer our Check Cashing services making it easier to cash your check at any time day or night. We also will continue to offer Payday Loans in case you need an advance on your next paycheck so that the check you wrote won’t bounce. You don’t even have to have a bank account to cash a check with us! We cash the following types of checks:
- Payroll checks
- Cashier checks
- Government checks
- Insurance drafts or checks
- Money orders
- Tax refund checks
- Personal checks
- Out of state checks
To cash a check,just bring your check and a picture ID into one of our
comfortable stores,fill out a quick customer information form, and
walk out with your cash.
