Three Banking Regulations You Need to Know About

In the last twenty five years the regulations which have managed banking have changed quite dramatically. We have moved from a fractured banking system to a massive computerized network linking banks together through a major clearing house and electronic transfer system. Some of the new changes to the federal laws which regulate banking include limits on electronic transfers, Check 21, and the EFT act.

First, let's talk about Check 21. The full term for this piece of legislation is called the "Check Clearing for the 21st century Act." This law was enacted in 2003 and put into effect on October 28th, of 2004. It has made it so that banks no longer require the recipient to keep the actual check and return it to your bank, rather they can make a digital copy and send it to your bank. Doing this decreases the amount of shipping necessary and increasing efficiency in the banking world.

Check 21 affects you in a few ways. First, you will no longer be able to get your original paper checks, since your bank is not keeping them any more. Secondly, if you want a check back, you can request a copy to be made by your bank. Checks will also cash generally faster than they did before, because the system is much more efficient. Finally, if there is some sort of error, such as a double payment or an incorrect charge amount, you can request a re-credit. This re-credit must be given within ten days and you can receive a re-credit up to $2500.