What Check 21 Means to our Members
As HOPE does not currently have paper checks, the affect on HOPE members is minimal. Check 21 relates exclusively to the handling of paper checks.
The "Check Clearing for the 21st Century Act" went into effect in October 2004. The Act allows financial institutions to stop transporting the original paper check, instead transmitting electronic images of the check. All financial institutions that issue paper checks must accept the electronic images of their customers' or members' checks as if they were the original checks. Financial institutions are not required to transmit electronic images of checks that are deposited into their customers' or members' accounts.
The result of this is that checks will begin to clear much quicker. Some checks could clear your account in a matter of hours rather than days.
Now more than ever, be sure that you have funds in your account to cover any checks you write!