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Congress OK's Electronic Check CLearing Between Banks
If this becomes law, banks would no longer be required to physically transfer your checks between themselves. Your check would stay with the bank where it was cashed by the person you sent it to. This would reduce banking costs (which you know they won't pass along to us, just will line their pockets with more money) and also mean no more check floating time for people so a lot more checks will bounce which means even more fees for the banks.
Nice one Congress! I really want all my checks laying around in hundreds of different banks all over the country. Yeh sounds like a good plan to me.
:BangBang
House OKs Electronic Clearing of Checks
WASHINGTON - The House on Wednesday passed legislation that would allow banks to clear checks electronically, potentially slashing paperwork in a speedier and less costly process.
Under the bill, passed by voice vote, banks could approve digital images of checks rather than physically transport them between financial institutions.
The bill would nix the current requirement that banks have specific agreements with other institutions to electronically process checks. Banks, customers and businesses that still want paper checks could request a substitute check, which has the same legal status as a regular one, to confirm the electronic transfer.
With tens of billions of checks processed annually, the current system is prone to delays when air transportation halts. The Sept. 11, 2001, attacks lent urgency to electronic check legislation, as banks had to resort to slower ground transportation when planes were grounded.
"Basically our current legal framework hasn't kept up with technological advances," said bill co-sponsor Rep. Melissa Hart, R-Pa.
The Senate has yet to act.
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