watch your checking account

[campingcop]

received this email, don't know how true it is.



Check 21" is starting in late October .You've probably
 bought something in a store with a check even though you
don't have the money in your account at the time. You figure you have a
few days for the check to clear, and by then the money will be there.
It's called the "float."
Well, the float is slowly becoming a thing of the past.
In a few weeks it will no longer be possible to float a check.  A new
law goes into effect on 28 Oct and all checks will be cleared
electronically within minutes... even at night, even on weekends. If payday is
Monday and you write a check at the store on Saturday assuming it won't
clear before your paycheck is in you will be wrong-that check will
bounce.  And you will be charged overdraft fees.

Be aware of what you are doing and the affect it could have on your
credit rating or career.  Make sure funds are available before you write a
check.

[griffsmom]

But I can't be overdrawn...I still have more checks!!

[Camperroo]

I think this applies to "electronic checks" like when you call in a payment to Visa and use a check authorization from your account.  I have heard those will clear by midnight of the transaction date, so you can't "float" those anymore.

Heck, checking may come to a screeching halt if the majority of us paycheck to paycheck folks can't "float" till payday!!!! :eyecrazy:

[labontefan]

Anytime I get e-mails like that, I check the info out at //www.snopes.com. A lot of the stuff that gets circulated is "urban legend". However, in this case, the info is mostly correct.

For one thing, although the law goes into effect 10/28, it doesn't mean that all banks will automatically use this method. It just means they can if they want to.

Here's more info:

http://www.snopes.com/business/bank/check21.asp

But probably a good idea to stop counting on the "float" period just in case!

[angelsmom10]

Being an office manager in the corporate office for 3 retail stores, I know that the store where you are purchasing would have to have the system installed there.  We get unsolicited phone calls from business wanting us to install things like this.  If they have a check verifier (ie telecheck or something like that), they can have that set up.  However, there is a fee per transaction + a % of the face value of that check.  Which in some instances would be stupid for the business to us it (ie someone writes a check for ie $10) till all the fees are assessed, the business would lose money.

We have telecheck for collections ONLY, but periodically the contact us for this and they tell us also, that we would have the option of not sending a check through their system and just depositing.  Just too much of a hassle, when we may get 10-20 checks returned per year and of the only about 1/2 we cannot get collected on our own, by just a phone call.  We have been told that we are the exception.

[Civil_War_Buff]

Being an office manager in the corporate office for 3 retail stores, I know that the store where you are purchasing would have to have the system installed there.  We get unsolicited phone calls from business wanting us to install things like this.  

Check 21 doesn't require the store to do anything!  It is a method that banks will use for handling your physical check.  The store will continue to deposit the checks as they do now, but the bank has the option as to whether they want to submit your physical check for payment or just make an electronic demand and then they can destory your check once the money is credited to their account, meaning they don't have to send it on to the issuing bank like before.  If you haven't signed up for "substitute checks" at your bank (mainly if you currently get your cancelled checks back from the bank) then it is highly recommended that you do.  Recrediting can only be done if you have this option and most people won't know that until it's too late.  

If your bank charges you for issuing substitute checks, look for a new bank!!  This is really going to be a hassle for us consumers in many cases, but it is pretty indicative of the trend...the financial world is trying to get us to use debit cards for everything and this is another step in that direction..just wait until they charge a surcharge for using cash.  Sounds funny, but it's coming folks!!!

[Acts 2:38 girl]

I aviod Price Choppers because of that system!  Guess I better get my checkbook in order!

[debbiedee1957]

I use a debit card...solves many, many problemos.......

[Civil_War_Buff]

I use a debit card...solves many, many problemos.......

And that is EXACTLY what they want you to do.