Check 21 Law Benefits Banks But Will Mean More Bounced
Checks & Fees For Consumers
Consumers will be more likely to bounce checks and may find themselves paying higher
fees under a new federal law that allows banks to process all checks electronically, consumer groups warned today.
Consumer Union and the Consumer Federation of America are urging banks across the country to adopt a set of
policies that will make the new Check 21 law more consumer-friendly when it goes into effect on October 28.
Consumers should get ready for an October surprise from their banks when this new check processing law is
implemented, said Gail Hillebrand, Senior Attorney with Consumers Union’s West Coast Office. Banks will save
billions under Check 21, but consumers stand to lose out unless banks adopt new policies to protect them. Read
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