Fed Won't Float new Check Hold Limits In Wake Of Check 21

Credit Union Journal, The, May, 2007 by Analysis Ed Roberts

The Federal Reserve last month rejected requests by lawmakers to shorten check hold times, saying it is too soon after enactment of the Check 21 law to warrant changes to its funds availability or Reg CC, availability of funds and collection of checks.In a report to Congress on the implementation of Check 21, the 2003 law that gave electronic images the status of legal tender, the Fed said while banks and credit unions are slowly speeding funds availability "to date, there has not been sufficient improvement within the check-collection and check return system to warrant legislative or regulatory changes to any of the funds availability requirements in the (Electronic Funds Availability Act) and Regulation CC."

At stake are billions of dollars in late fees and interest, the...

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