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Check 21 Law is killing my deposits

Discussion in 'Business Operations' started by pema, Nov 4, 2004.

  1. pema

    pema LawnSite Member
    Posts: 54

    Anyone else see a slow down in customers paying bills this last week? My deposits are off as much as 80%. I can only imagine the changes made to the banking system, (i.e. check 21), most be at the root of the problem.

    Good Ole, banking system. If service charges and other "Misc" fees keep going up i'm going to start stuffing my mattress with cash instead of depositing payments into my account.
  2. Throgmorton

    Throgmorton LawnSite Member
    Posts: 52

    I'm a V.P. at a large Bank and am a part-time LCO. Banking is changing everyday. You will start seeing the float start going away in the processing system. Everything is going to be electronically cleared. One reason check 21 is in place is because of 9/11, due to the planes being grounded and not being able to transfer money across the country. Yes, banks like the fee income from service charges.
  3. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I have been reading and reading about it, but I feel that there is some fine print that nobody really knows about. Throgmorton, maybe you can enlighten me.
  4. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Outside of the Tellers I've never seen anyone at a Bank that wasn't a VP ;) ....talk about an overused title....and everybody thinks that only Janitors with Sanitation Engineer have a title. Just kidding... :p
  5. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    so I get a paper from my credit union today in regards to the Check 21, and something that blew me away is that you only get between 40-45 days to claim a refund on a check that was recorded wrong. For example, you write a check for $770, and it transfered through all the loops at $900, you only have that certain day limit to claim that refund.
  6. billc

    billc LawnSite Member
    Posts: 119

    The NY Times had an editorial saying banks can still hold deposits for as long as they ever did, even though they can collect the funds almost immediately. That means if you deposit a large check, they can hold it for 2-3 days (depending on how local it is) even though they can clear it immediately. They're working the float to increase the interest they steal, er, earn. The Times also predicted an additional $70,000,000/month in overdraft fees.
  7. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

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