Business | New federal regulations will cut the amount of time consumers can "float" a check
by Dan Perkins
Posted 11/13/04, 12:00 am
Have you ever written a check without the funds in the bank to cover it? If you do it regularly, new federal regulations intended to speed up the processing of checks may cost you in the long run.
The Check Clearing for the 21st Century Act-or Check 21-allows financial institutions to exchange electronic images of consumers' checks rather than transporting the actual paper checks. That means checks that consumers write will have less "float" time between the time a check is written and when funds are actually withdrawn from the account.