Mon, Tues, Thurs, Fri 7:30am - 3:00pm
   
Wed, Sat & Sun Closed
 
PO Box 349 Ph: 203.367.4518
Bridgeport, CT 06601 Fax: 203.335.4748

 

What's New

Check 21 - What does this mean to you?

The Check Clearing for the 21st Century Act, commonly known as "Check 21" will become effective October 28, 2004. This Federal Law will change the way checking accounts work.

This Act will significantly speed up check processing, eliminating the delay (float time) between a check’s presentment and its deduction from your account. Financial Institutions will be allowed to instantaneously send electronic images of checks and eliminate the physical routing of paper checks through a complex processing system.

Instantaneous check processing means that you can write a check at the supermarket and the funds are being debited from your account before you leave the parking lot. It’ll be that fast.

As we have always stressed, members should make sure that sufficient funds are in their checking account before writing any check. Electronic image transmissions will no longer provide any “float” time; therefore, it is imperative that you, our members, be diligent in ensuring sufficient funds are in your account prior to writing any checks. Otherwise, NSF fee’s could be substantial.

Stop payment requests are pretty much a thing of the past as well. If a stop payment request is to be made, it will need to be done swiftly otherwise you may find that the check has ready cleared your account.

"Check 21" eliminates the paper check, therefore there will no longer be any cancelled checks or photocopies returned by any financial institution. Your check will be digitally copied to create a “substitute check” and your original will be destroyed the moment it is accepted as an electronic transaction. Substitute images have the same legal status and use as photocopies of the actual checks.

Be reminded that just because your checks clear faster, does not mean your deposits will be available to you any sooner. The new law does not shorten check hold times. We currently have a check hold of three (3) days for local checks and five (5) days for out-of-state checks.

"Check 21" is intended to expose fraud faster and to reduce processing time and expense.

What does this mean to you as a Draft Account Holder?? It means that most checks you write will be presented to us the NEXT DAY for payment. If you do not have the funds in your account to cover the check, IT WILL BE RETURNED NSF AND YOUR ACCOUNT WILL BE CHARGED THE APPROPRIATE NSF CHARGE(s).

PLEASE UNDERSTAND, UNDER NO CIRCUMSTANCES CAN WE HOLD THE CHECK ANY LONGER THAN 10:30AM, THE DAY AFTER YOUR CHECK OR EFT PAYMENT WAS PRESENTED FOR PAYMENT. ALTHOUGH WE ARE NOT OPEN, WEDNESDAY, IT “IS” A PROCESSING DAY FOR DRAFT ACCOUNTS. THIS MEANS THAT IF AN ITEM IS PRESENTED FOR PAYMENT ON WEDNESDAY AND YOU HAVE NO MONEY, IT MUST BE RETURNED BY 10:30AM THURSDAY. NO EXCEPTIONS!!! NO CHECK SHOULD BE WRITTEN UNLESS YOU KNOW THE FUNDS ARE PHYSICALLY THERE!!!!!