Banks sharpen their tools of the trade

By HANK EZELL

The Atlanta Journal-Constitution

Published on: 10/28/04





The float just sank.



As of today, any check you write may be posted — and the money deducted from your account — within a few hours.



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Savvy consumers no longer can count on a delay of a day or two or three — the float — as a paper check moves through the banking system.



The speedup is a result of the new Check 21 law, which goes into effect today. It allows banks to make an electronic image of a check and send the electrons, not the paper, through the system.



At the same time, the new federal law does not require banks to process your deposits by the new, speedy method.



Not all banks will make the switch overnight. Wachovia, for example, plans to start with a pilot program involving "a very limited set of customers," bank officials said Wednesday.



Electronic processing is much cheaper than shipping tons of paper, so you can expect all major banks in Georgia to change over in coming weeks or months.



When you get your statement in the mail, you can expect a mixture of traditional paper checks and electronic images of other checks.



Consumer advocates offer these tips for dealing with speed-of-light banking:



• Stop writing rubber checks. Gail Hillebrand, a senior attorney for Consumers Union, suggests you check your balance if you have any doubt at all about how much is there. If you bank online, you can look up your balance from a computer.



• Use direct deposit whenever possible. Many employers will arrange to send your pay directly to your bank account. You can do the same thing with dividend checks and government checks. With direct deposit, there is no hold, bankers say.



• Consider overdraft protection. Some banks will allow you to link a savings account to your checking account. If you write a bouncer, your bank will cover it with money from the savings account. Note: Banks generally charge for this or similar arrangements.



• Check your monthly statements as soon as you receive them. Some experts worry that, on occasion, a check might be posted twice. To get the full protection of the law, you have to notify the bank about any such problems within specified periods.

[chuckhs12]

"• Use direct deposit whenever possible. Many employers will arrange to send your pay directly to your bank account. You can do the same thing with dividend checks and government checks. With direct deposit, there is no hold, bankers say."



I have seen ionstances of where they will process a debit/check from your account the same day of the Direct Deposit, but before they credit your account with the deposit. Most institutions that deal in direct deposit post your funds to your account around 7:00 a.m. banks local time of the day the deposit is due.



The debit's will happen through the night up to the point of actual credit of your funds. Then youhave to spend time fighting the statements and their procedures to get it corrected and recover any fees they have charged you.



When will a new law/policy be passed that gives equal consideration to both sides?



I also know that the company I work for has made it almost impossible to receive a check about 4-5 years ago. I geuss this is just another way for the banks to get people to do it their way.



The more stuff is done electronically, the harder it is for anyone to prove that they violated some law. No paper trail, no proof.

[Jerseee]

Chuck,



That is not entirely correct. computer systems are like houses of information and even when you think you have deleted something--you haven't.



There is always evidence of transactions through systems. whether someone is logging on to one or deleting something--there is a register internally.



Just stock up on your gold and silver. In the meantime, play the game.

[EnSabahNur]

Get out of the Banks! Close your accounts, keep one for cashing checks, cancel you Bank Cards, and use only cash. Plain and simple. Get a safety deposit Box if your worried about having cash. Get out of the system, they track EVERY purchase you make.



I did it two years ago, couldn't be happier.

[weasel]

so you just stockpile your cash/gold/etc ?

[chuckhs12]

Originally Posted by Jerseee

Chuck,



That is not entirely correct. computer systems are like houses of information and even when you think you have deleted something--you haven't.



There is always evidence of transactions through systems. whether someone is logging on to one or deleting something--there is a register internally.



Just stock up on your gold and silver. In the meantime, play the game.

Jerseee,



Can you point me to the relevant laws that would cover this area. I have a feling that this is setting a situation that will make it even tougher for the individual to make their case.



They get these laws passed to their advantage for one reason or another. This might not look like a big deal now and just another way to try and steal more FRN's from you, but it can lead to other things like providing digital images of the original promissory note, etc... No paper trail just doesn't set well with me.



It may seem like I am being paranoid, but you can look at the news and read the headlines everyday. You will see that they are trying to cover up something somewhere that will hurt us even more.



I plan on stocking up as circumstances permit. For now I have to deal with them and their system.



Anyone that would have pointers to laws or codes concerning electronic data and how it is admissible in court would be very helpful.



better to be prepared before something happens than to scramble at the last minute.





my 2 cents worth.....

[Jerseee]

Check the FRE in the links section of thsi site. There may be something there to settle your uneasiness.