(by Dr. Goldfinger)

Under check 21, or the Check Clearing for the 21st Century Act, which is to be implemented on October 28, consumers will see some changes in their accounts as all checks will turn to those within electronic shape.
Under the terms, float will be reduced and consumers will be punished if they try to write checks further on. Paper checks now can take several days to clear, but electronic processing will take no more than a day.

The main target of Check 21 Act is to have banks clear checks electronically instead of sending paper checks around the country to settle accounts.

’’Consumers should get ready for an October surprise from their banks when this new check processing law is put in place,’’ warned Gail Hillebrand, an attorney in the San Francisco office of the nonprofit Consumers Union.

’’For one thing, this is going to be implemented gradually,’’ said Joe Gillen, chief executive of Pinnacle Financial Strategies, a consulting firm in Houston. ’’There will be some bumps, but people will have time to adapt.’’