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#764110 - 06/28/07 08:17 PM Check 21- Optional?
CaseyBoo30 Offline
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Joined: Feb 2007
Posts: 262
Winchester, KY
Before I continue with my question I will confess that I am not extremely knowledgeable on Check 21. However, can someone please clarify for me if it is okay that a Bank's account brochure indicates that the Bank has not adopted Check 21 so customers may not create substitue checks and the Bank will not accept substitute checks unless a prior written agreement has been signed? I was under the assumption that it was mandatory for Bank's to adopt a policy and provide disclosures to customers.

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#764171 - 06/28/07 08:35 PM Re: Check 21- Optional? CaseyBoo30
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Your bank certainly has the right to refuse to accept substitute checks (or images) for deposit, just as you have the right to refuse to accept any check. You could run into a problem, though, if you charge back a returned substitute check to a customer. How is your customer going to collect on that check? Will you force her or him to send it for collection?

You do have a responsibility to provide disclosures under section 229.57 of Regulation CC to any consumer when he or she opens a new deposit account for which the consumer will receive paid checks with periodic statements, and to any consumer when you deliver a substitute check in response to a copy request or when charging back a returned substitute check.
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