| |
| |
|
Credit Information |
|
|
|
What is the Check 21 Act?
Check 21 is the common name for the Check Clearing for the 21st Century Act. It's new legislation that was recently passed by congress and made a law when signed by the President of the United States (remember "I'm just a bill" from Saturday morning cartoons). Check 21 basically streamlines the traditional check processing system by incorporating new electronic technology. This new system replaces an outdated check clearing system that banks and other financial institutions have used for many years. The advantage is the ability to cut the time it takes for a check to clear from days to hours. The process to do this involves a pseudo or substitute check. Check 21 now allows banks to use this in place of original checks. The technique to make this a reality involves converting the information on the check into an electronic file, which is then sent to the maker's financial institution for payment. This significantly speeds up the check clearing process from days to hours. The original check can even be destroyed because a substitute check can be made at any time during the process. This image can be used as a proof of payment just like an original check. In fact the checks look almost exactly like original checks except for a slightly reduced image of both the front and back of the original check. You can expect to see a substitute check if the original check was converted to an electronic file during the payment process and the check turns out to be a bad check due to non-sufficient funds in the payee's account. The bad check you receive will actually be the substitute check. You may also receive a substitute check if you request a copy of one of your own paid checks provided that check was converted to an electronic file during the payment process. Don't worry the Check 21 law allows you to use the substitute check the same way as if it were the original check involved in the initial transaction or payment. However, don't expect a rapid rollout of electronic file conversion of checks right away. First financial establishments (such as banks and credit unions) or not required to change from paper to substitute checks due to the large upfront cost associated with investing in the equipment needed to comply with Check 21. Don't worry though many financial institutions will gradually switch to the new system since it will save money over time on the transporting of checks, improve security and mitigate the loss associated with check fraud. The consumers affected the most by this new change in check clearing will be those individuals that write a check one day and then attempt to transfer money into the account the next day or write a check a day earlier then they are paid via direct deposit. This method of floating money won't be as easy to duplicate since in many cases electronic checks can clear in a little as 4 hours. So although some consumers may feel an initial wakeup call many will embrace the new act simply based on the fact that it should curtail the fraudulent activity currently seen in the financial industry. Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and credit repair information that you can research in your pajamas on his website.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
Consumer Credit Reports A consumer credit report is a factual record of an individual's credit payment history. It is provided for a purpose permitted by law: to help a credit grantor or lender quickly and objectively decide whether to grant you credit. Errors on Your Credit Report: What You Should Do There are times when you may be turned down for credit and you do not understand why. According to the Fair Credit Reporting Act you are entitled to a free copy of your credit report if you have been denied credit because of negative items on your credit report within 60 days of the request for credit, if you are unemployed but looking for work, are on welfare, or believe that your credit report is incorrect because of fraud. How Do I Establish A Good Line of Credit? A line of credit, roughly defined, is the amount of credit that can be given to a borrower from a lender. Usually a contract or note of promissory is exchanged between the two parties, in which both parties agree to the line of credit amount, as well as the annual interest due to the lender at the end of the term. Check Your Credit Before Shopping For That Home Loan Review Your Credit Score.Nearly every bank, credit union, and mortgage lender relies on a three digit score provided by one of the three major credit bureaus to help them make lending decisions. Understanding the Function of Credit What is Credit?Credit is the backbone and the engine behind the workings of the economy. Credit simply allows individuals and companies to borrow funds in good faith and pay it back over a specified time frame. Bank Robbery Growing In U.S. Bank robbery has grown to become a huge problem in the United States but I am not talking about people robbing banks. I am talking about banks robbing people. All You Wanted to Know of Bad Credit Martin Henderson is in a fix these days. Because of his failure to repay a loan he had taken a few years back, he has been adjudged as a bad credit case. Opting For A Credit Card? Check Out Certain Terms You've just received a "pre-approved" credit card offer in your mail. Without wasting a minute you're ready to accept it, especially if it's the "before-the-offer-expires" one. Credit Cards, Merchant Accounts, and Your Bottomline Q: I'm opening a gift shop and want to be able to accept credit cards. I talked to the branch manager at my bank, but he didn't seem to know much about how it all worked. A No-Brainer Way Of Getting Credit And Credit Cards What Is Your Credit Rating Now?If you have any charge accounts now, or have ever borrowed from the bank to buy a car, or if you ar paying on a mortgage, there is credit information on you.Up until a few years ago, you could only guess at what your credit rating was, because the credit bureaus who keep track of borrowers wouldn't tell the borrowers anything! But that's been changed through several laws, and now the bureaus have to send you your credit file when you request it. Why Is It important! Your credit is the most important thing you have other than your breathe. There are three types of people in this world. Keep Your Credit History Clean - Remove A Negative Credit Record From Credit Report The three major credit bureaus, Experian, Equifax and Trans Union are similar and feature a "Credit Score", which is created from credit report data submitted to them about you.But very often your credit report includes inaccurate, wrong or incomplete information (credit records). Bad Debt Recovery Bad Debt IdentificationIdentifying bad debt is not as easy as it sounds. But the earlier it is done, the better are chances of recovering it. How To Eliminate Credit Card Debt There is almost nothing more troublesome than having too much debt to pay each month. Consumers incur debt for many different reasons. Addressing Bad Credit Card Debt Spending HabitsSo you've just got your credit card. The first thing you need to be wary about is that a credit card is very easy to use - afterall you can shop in stores, via catalogs and online with your credit card. Credit Cards - Why Prepay? With prepaid credit cards, you get the practicality of plastic while choosing exactly how much debt to charge. By taking charge of your personal financing, you determine your own limits, to the penny, and change them any time you need to. Borrowing on a Credit Card One of the easiest ways to borrow money of a financial institute is to use a Credit Card, available from all banks, building societies, and other financial organisations. The choices available are enormous, with a wide variety of interest charges, annual charges, loyalty schemes, and bonus points available. Credit Counseling: Could it Work for Me? In the face of financial hardship, many seeking a responsible solution turn to credit counseling. Credit counseling is, all too often, the last stop before bankruptcy. How Can A Qualified Mortgage Consultant Help Boost Your Credit Scores? Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. How Businesss Mess Up Their Credit Policies In "Become the Squeaky Wheel" a book recently published, Michelle Dunn demonstrates the major areas a business should focus on to ensure a satisfactory customer experience.One mistake business owners make is not having a credit policy in place when they open their business.
|
| Good Credit Loans | home | site map | School Bus Clothing | Florida Pool Heating |
| © 2006 |
