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Banking | Check 21 | Internet Banking | Bill Pay | Security Tips
Frequently Asked Questions about Check 21
Q: What is Check 21 and what is its basic purpose?
A: Check 21 is a federal law that is designed to enable banks to handle more checks electronically, which should make check processing faster and more efficient. Check 21 becomes effective on October 28, 2004.
Q: How will Check 21 make check processing more efficient?
A: Instead of physically moving paper checks from one bank to another, Check 21 will allow banks to process more checks electronically. Banks can capture a picture of the front and back of the check along with the associated payment information and transmit this information electronically. If a receiving bank or its customer requires a paper check, the bank can use the electronic picture and payment information to create a paper "substitute check." This process enables banks to reduce the cost of physically handling and transporting original paper checks.
Q: Is electronic check processing secure?
A: Electronic check processing is not new to the financial industry and is a safe and reliable way of processing payments. It uses technology that has been developed and tested to process your check information securely.
Q: Will Check 21 result in my check being paid sooner?
A: With Check 21, banks will likely process more checks electronically. As a result, your check may reach the bank faster and be paid sooner.
Q: What is the difference between Check 21 and programs that convert checks to electronic payments?
A: Your rights are governed by check laws and regulations when a check you write is processed as a check. Under electronic check conversion, the check is used only as a source of information to create an electronic fund transfer and is not processed as a check. You must receive notice that your check may be processed this way. Electronic fund transfers are governed by different laws and have different consumer rights than check payments.
Q: What changes can I expect when Check 21 goes into effect?
A:After October 28, 2004, you may receive a substitute check when you were expecting an original check. For example, if you receive canceled checks with your account statement, you might begin to receive a mixture of canceled original and substitute checks.
Q: What is a substitute check?
A: A substitute check is a paper copy of the front and back of the original check. A substitute check is slightly larger than a standard personal check so that it can contain a picture of your original check and it must be printed in accordance with very specific standards.
Q: When is a substitute check legally the same as the original check?
A: A substitute check is legally the same as the original check if it accurately represents the information on the original check and includes the following statement: "This is a legal copy of your check. You can use it the same way you would use the original check." The substitute check must also have been handled by a bank.
Q: Can I use a substitute check as proof of payment?
A: Yes. You can use a substitute check as proof of payment because it is legally the same as the original check.
Q: Can I demand an original substitute check instead of a copy?
A: We may provide you with a substitute check, but the Bank is not required by law to do so. If we do not provide you with a substitute check, you usually can use a copy of an original check or a copy of a substitute check as your proof of payment.
Q: Is the bank required to tell me about substitute checks?
A: Under Check 21, banks are required to provide a disclosure to their consumer customers who receive canceled checks with their monthly statements. The disclosure describes substitute checks and consumer rights regarding substitute checks.
Banks must also provide a Check 21 disclosure when a consumer requests an original check or copy of a check and receives a substitute check, or has deposited a check that is returned unpaid in the form of a substitute check.
Q: Can I still get my canceled checks back?
A: If you get your canceled checks back with your account statements today, you will continue to receive canceled checks unless we notify you otherwise. The only difference will be that some of the canceled checks that you receive may be substitute checks. You can use a substitute check the same way you would use an original check, such as for recordkeeping and proof-of-payment purposes.
Q: Can banks or their customers prevent others from using their original checks to create substitute checks?
A: No. Generally, any check can be used to create a substitute check, including a personal check, corporate check, credit card check, postal money order, and U.S. Treasury check. However, a foreign check cannot be used to create a substitute check.
Q: Can I get my original check if I need it?
A: Banks are not required currently to keep your original check for any specific length of time, and Check 21 does not add any new retention requirements. In many cases, the original check may be destroyed. If you request your original check we may provide you with the original check, a substitute check, or a copy of the check.
Q: How am I protected under Check 21?
A: Check law protects you against erroneous and unauthorized check payments. In addition, Check 21 contains a number of new protections for consumers. For example, Check 21 contains a special refund procedure (called "expedited recredit") for a consumer who suffers a loss related to a substitute check he or she received.
Q: If I suffer a loss related to a substitute check I received, can I file a claim?
A: Yes. If you have received a substitute check related to a consumer account, you can file a special claim for a refund (called an "expedited recredit") if you believe that
1. The substitute check was incorrectly charged to your account,
2. You lost money as a result of the substitute check being charged to your account, and
3. You need the original check or a copy sufficient to show that the substitute check was incorrectly charged to your account.
Q: How do I make a claim under the Check 21 refund procedure?
A: If you believe that you have suffered a loss relating to a substitute check that you received, you should contact us as soon as possible but no later than 40 days from when we mailed or delivered your account statement. We will ask you to provide, in writing and within 10 days of your verbal notification, information needed to investigate your claim. For specific details about filing a claim and how we will handle it, please refer to our Check 21 disclosure statement or contact us at 1 (888) OCEAN33.
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