Lawmakers Tell Fed Financials Should Share Profits Resulting From Check 21

Credit Union Journal, The, December, 2004 by Ed Roberts, Washington Bureau Chief

A group of top lawmakers called on the Federal Reserve last week to ensure that banks and credit unions are sharing any new profits on "float time" accrued from the new Check 21 law with consumers.

In separate letters sent to Fed Chairman Alan Greenspan and a group of trade associations, including CUNA and NAFCU, the lawmakers note that the new law aims to improve the check clearing process by establishing electronic check images as legal tender, thereby expediting the clearing process and making funds available sooner. The lawmakers, who include House Financial Services Chairman Michael Oxley of Ohio, urge that banks and credit unions pass on savings of reduced holding times for checks to their consumers/members. "Bottom line, Check 21 was designed to benefit consumers,"...

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