Whether Check 21's News Is Good Or Bad Depends On The Viewpoint

Credit Union Journal, The, December, 2003 by Lisa Freeman, Associate Editor

The good news: the Check Truncation Act, or Check 21, will mean checks will clear faster. The bad news: Check 21 will mean checks will clear faster.

The view that the newly enacted Check 21 is good news stems from projected reductions in fraud. But for many consumers there will also be a downside, as many rely on there being some float time between the point when they write a check and when it actually gets cleared. And that good news/bad news scenario applies to both credit unions and their members, according to several technology vendors. "Credit unions will be forced to choose between two choices: allow unfettered access to the credit union at the risk of bad transactions or tighten everything down and anger good members," said Milton King, CEO of TWS Systems, Dunedin,...

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