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View Full Version : beware of new law!!!


Frontier-Lawn
10-22-2004, 09:48 AM
i saw this on TV last nite about a new check law. so if any of you that float checks for supplies, or equip. it could take as Little as 2 hours for the check to clear now, instead of a few days. :dizzy: check 21 law (http://www.federalreserve.gov/paymentsystems/truncation/faqs2.htm)

HOOLIE
10-22-2004, 10:32 AM
I think the new law starts on Oct. 28.

Before, banks had to physically transport checks to the appropriate banks to clear them, now they can send them electronically. So you could write a check, and the recipient could go cash it right away, and if the money's not in your account, it will bounce.

Frontier-Lawn
10-22-2004, 11:18 AM
ya they said that now because of this law. 7 billion more checks a year could bounce

MMLawn
10-22-2004, 12:02 PM
If someone is floating checks in their business then they are working from a house of cards that will tumble down around them and their business.

LwnmwrMan22
10-22-2004, 12:33 PM
If someone is floating checks in their business then they are working from a house of cards that will tumble down around them and their business.


I completely disagree.

There's times when I'll float a check for any number of reasons.

Well, wait, I take that back.

I'll send a check in the mail, knowing that the 3 days it gets to whoever, I'll have a check back to cover it.

As for going to the dealer, I just tell them I'll catch them next time if I'm a little tight on the cash flow.

John Gamba
10-22-2004, 01:32 PM
Lets Look at the positives, Your Customers checks will clear faster.
John

beransfixitinc
10-22-2004, 01:37 PM
As for going to the dealer, I just tell them I'll catch them next time if I'm a little tight on the cash flow.

Well, I'll be sure and hold your unit safely here in the shop until you can catch us next time.

Frontier-Lawn
10-22-2004, 03:24 PM
you have to agree this is a good thing to know about also

oneandonlyjojo
10-22-2004, 05:51 PM
all i know is with commerce bank checks clear same or next business day. while my other banks take a few days. so if check clearing is an issue join there bank

HOOLIE
10-22-2004, 06:29 PM
all i know is with commerce bank checks clear same or next business day. while my other banks take a few days. so if check clearing is an issue join there bank

If your customer banks at Commerce, then their check will clear faster, because Commerce doesn't have to send the check out anywhere. If the check is from another bank, Commerce sends it to the other bank to clear. That's the gist of it anyway. I'll have to ask the girl at the bank to explain it more thoroughly to me. Point is, when the new law takes effect, it won't matter which bank a check comes from, they can all transmit the checks electronically, which will make 'em clear much faster.

You should be able to open an overdraft line of credit, or open a business savings account that the bank can draw from if there's no money in your checking account. :angry:

No reason for the angry face, my 6-year old wanted to click on it...LOL

TSM
10-22-2004, 09:08 PM
If someone is floating checks in their business then they are working from a house of cards that will tumble down around them and their business.

i got to agree. there are lines of credit, overdraft protections, heck even credit cards are better than writing a check without the funds to back it.

:blob3: :dizzy: :alien: ;)

LOL, i was once 6 years old too!! :rolleyes:

fixer67
10-22-2004, 10:05 PM
I see the furture of checks to be things like TeleCheck.
http://www.telecheck.com
Your check is checked and cashed in as little as 15 to 20 seconds while you are standing there. I have seen a few people get upset and a few that could not beleive that they had been busted.

youngdude
10-22-2004, 11:10 PM
Old Navy started doing that around here, takes about 20 seconds to find out if the check is good or not.

impactlandscaping
10-23-2004, 09:10 AM
It's called the Check 21 or substitute check system. I have already recieved several electronic copies of checks. It will speed up processing and that should in turn lower overall banking costs, and hopefully, hopefully, somewhere down the line, trickle to the end users...us.

Frontier-Lawn
10-23-2004, 09:26 AM
did any one see csi Miami this week? they have a implant mirco chip that Carry's all your info and they scan it to bill you (niteclubs) they also covered it on cnbc at 4pm today. the company that makes it said its big in other country's, also emts can use it to access your med file to treat you faster and less med risk to you from complications.

gm lawn
10-23-2004, 09:36 AM
Commerce Bank Is The Worst Bank.................

Henry
10-25-2004, 06:11 PM
Your vendors will be able to use this electronic check system also, some may be doing it already. A distributor that I deal with sends the checks they receive to their bank electronically. I found this out recently when they did the electronic transfer and also deposited the actual check I sent them and the bank paid them twice. Keep an eye on your statements this could be messy in the beginning.

tonygreek
10-25-2004, 07:55 PM
OT: Fixer67, here's a Briggs image for you if you'd like that is a quarter the size of the one you're using in your sig file. 21k vs. 80k and a lot faster for us to download your messages. :)

Just right click and save if you'd like.

Tony

mtdman
10-25-2004, 09:32 PM
did any one see csi Miami this week? they have a implant mirco chip that Carry's all your info and they scan it to bill you (niteclubs) they also covered it on cnbc at 4pm today. the company that makes it said its big in other country's, also emts can use it to access your med file to treat you faster and less med risk to you from complications.

Not to sound paranoid, but it'll be a cold day in hell when they manage to get that into my body. They can also use it to track you and where you are. Walmart is developing a system where tiny micro radio chips are put in EVERYTHING they sell, including food. That way they don't have to physically scan it when you check out, a receiver gets the signals and adds it to your bill. Problem is, it's in your food, and gets inside you when you eat it. And the signal doesn't stop once you leave the store.

It all sounds too much like the mark of the beast to me.

As far as check 21 goes, I have no problem with the float thing. But what bothers me is, the law does not require your bank to release the funds acquired from deposited checks any faster. For instance, my bank only allows the first $100 to be available from a deposit right away. The remainder takes 2 or 5 days to be available, depending on the bank. 2 days for local, 5 days for out of town checks. Now with this check 21 thingy, the banks will collect the funds from my deposits withing 24 hours, but the funds will not be available for use for 2 to 5 days. Which means the bank gets to play with MY MONEY for the difference in time at no extra charge to them. And, if I attempt to use those funds before they are available, I get a nice little $33 charge for unavailable funds, even though the bank has already collected and received the funds. I had a nice little discussion my my local bank about it, and it didn't make me happy to hear the answer. That is a pile of bs, and it highly pisses me off.

Not to mention, I suspect that this will make it easier to forge checks now that they don't have to be physically presented.

:angry: :angry: :angry:

Frontier-Lawn
10-25-2004, 09:37 PM
i already use mainly my atm/check card and online bill pay i rite about 1 check every 2 months

timturf
10-26-2004, 09:04 AM
But what bothers me is, the law does not require your bank to release the funds acquired from deposited checks any faster. The remainder takes 2 or 5 days to be available, depending on the bank. 2 days for local, 5 days for out of town checks. angry: :angry: :angry:

Did everybody catch this!!!!!!!!!!!1

Even thou check may clear almost immediately, the deposit might not be available for several days!

AintNoFun
10-26-2004, 09:42 AM
Commerce Bank Is The Worst Bank.................



agreed, we stopped banking with them last month......

Frontier-Lawn
10-26-2004, 09:55 AM
i do my banking with libertysavings bank there in fl, & oh

Turf Medic
10-26-2004, 10:06 PM
Lets Look at the positives, Your Customers checks will clear faster.
John

But the negative is they will bounce faster, and more often. If you have a customer that is used to giving you a check on Monday and being able to cover it with payday on Friday is now going to find themselves short and possibly bounce the checks. The way I read the law if your bank is so inclined as soon as you drop off the deposit at your drive-thru window, they can withdraw the funds from your customers bank account. If the funds aren't available the customer gets charged with an overdraft, you get charged with whatever charge you bank has for returned checks, then the check will get presented the next day, again with the same charges. Another bad thing about the law is it is not mandatory, the banks don't have to honor the system, so your checks may clear within minutes with some banks and days with others.

LwnmwrMan22
10-27-2004, 10:36 AM
But the negative is they will bounce faster, and more often. If you have a customer that is used to giving you a check on Monday and being able to cover it with payday on Friday is now going to find themselves short and possibly bounce the checks. The way I read the law if your bank is so inclined as soon as you drop off the deposit at your drive-thru window, they can withdraw the funds from your customers bank account. If the funds aren't available the customer gets charged with an overdraft, you get charged with whatever charge you bank has for returned checks, then the check will get presented the next day, again with the same charges. Another bad thing about the law is it is not mandatory, the banks don't have to honor the system, so your checks may clear within minutes with some banks and days with others.

Another reason I dropped all residential accounts. My commercial accounts, USUALLY you can tell when a business is about to fold up shop, at least an established one.

I will admit I have indeed had to go through bankruptcy proceedings in the past to get $4-500 from someone, but you still know you're going to get your money.

mtdman
10-28-2004, 05:21 AM
Another reason I dropped all residential accounts. My commercial accounts, USUALLY you can tell when a business is about to fold up shop, at least an established one.

I will admit I have indeed had to go through bankruptcy proceedings in the past to get $4-500 from someone, but you still know you're going to get your money.

I've had more problems collecting money from commercial accounts than I ever had with residentials. That's why I dropped most of my commercial work.