Here's a LINK to the information. The course is now being offered at $21.95 (that's just under $1 an installment, when you count the final recap of all the Q&As!) Discounts are available for multiple enrollments paid for at the same time.

Question:

I am entitle to send the official disclosure only when the customer receives a physical Substitute check right? not when a copy of SC is generated?

Correct. This is in addition to the general notice you'll send to any customers who get checks back in their statements.

In the creation of a substitute check what if the original check is written with a colored gel pen and the image doesn't transfer. What happens and who becomes responsible for the check?

Could you please explain the "positive pay" reference in the course? I was confused by the terminology.

Under Check 21, if the (faulty) image of the check is reconverted to a substitute check, the bank that creates the substitute check will bear the onus of the substitute check warranties and indemnities. That's as far as Check 21 goes.

If the bank that truncates the check is the same bank that reconverts the check (that is possible), the imaging bank carries the onus and will have to deal with its customer that deposited the check.

If however the truncating bank and the reconverting bank are different banks (more likely scenario), there will most likely be an agreement or agreements between the banks that exchange images, contractually creating warranties for the image quality (outside of Check 21). In that way, the onus gets shifted contractually back to the truncating bank, which will have to deal with its customer (the depositor).

Banks may have in place contractual language shifting losses back to customers who deposit checks that cannot be imaged successfully. If they don't, the depository bank will "eat" the loss. If they do, the depositing customers will have an incentive to refuse checks that are likely to be non-image friendly. That includes, by the way, checks with "cutesy" theme pictures printed on them that might conflict with imaging technology. The big check printers (Harland, Deluxe, etc.) will get on board quickly eliminating these checks from their catalogs. They'll also influence their captive "off-brand" direct sellers like Current. Banks may have to impose financial penalties on customers for continued use of the non-imageable checks.

Hello. I was wondering if check 21 involves the change of either the face of the check/ or format / stock used for companies who write checks.
Please advise.
Thank you very much.

There is a current ANSI standard for check stock. My sources tell me that if checks that are issued conform to that standard, they should be compatible with the image technology to be used to truncate and reconvert checks.

It's likely that one of the by-products of Check 21 is a shift in check security features away from those elements that won't survive imaging and toward technologies that will both survive imaging and provide more robust anti-fraud features.

It's also likely that check issuers who have been wont to emblazon their checks with cutesy little graphics and pictures will be pressured to drop the practice in the name of image clarity.

Hi John,

On day 18 you talk about delaying availability of the provisional recredit. But the course doesn't address how the bank should inform the customer of the fact that we're delaying availability.

I've seen some threads posted here in the Check 21 forum that suggest filling in the availability date on the provisional recredit notice with language similar to one of the explanations shown here.

- You may withdraw these funds within 45 days after we receceived your claim unless we notify you that the funds are available sooner

or

- You may withdraw these funds once we complete our investigation or 45 days after we received your claim, whichever is earlier.

Are these methods acceptable per the regulation or is there a different way that you'd recommend? Also, do we need to state that we will not impose an overdaft fee with respect to checks drawn by the customer on these recredited funds until the fifth day after the date of our notice?

Thanks.

The regulation requires that you notify the consumer of "the date on which the recredited funds will be available for withdrawal." I read this to require that you must specify a date which is no more than 45 days from the date of the claim, not the period of time for which you are delaying availability. The sample form C-23 provides a place for that date. I'd recommend adding "or sooner, if we finalize this claim sooner in your favor," or words to that effect.

There is no requirement that you notify the customer that you'll waive OD fees on drafts drawn against provisionally recredited funds for which you are delaying availability.

Gratuitous thoughts: The regulation requires you to waive the fee, but does not require you to honor checks drawn against the funds on which you are withholding availability. Also of note is the lack of any parallel requirement if the bank later decides to reverse a recredited amount.

Thanks. I missed the point that we need to state an actual date.

Great Information...Thanks