The Consumer and the Checking Account Fairness (CCAF) Act Essay

The Consumer and the examineing Account Fairness (CCAF) Act Near the determination of 2004, the Check Clearing for the 21st Century Act (Check 21) went into effect, bringing with it heterogeneous opinions on what consumers and bankers alike could expect. The now law dealt with the exchange of digitized checks opposed to tangible checks, and decreased processing cadence drastically. The belief among many circles was that checks would begin to funk en masse, and that the consumer would be impacted in a drastic way. This writing touches on the infralying subject of the boast as well as subsequent legislation entitled the Consumer Checking Account Fairness Act (CCAF) that addresses imperfections in Check 21. We provide offer information on both acts and visualize how we as the consumer can expect to be affected. The FloatVentureline.com defines the term bollix as being the time between the deposit of checks in a bank and when the amount is truly accessible (2005). This term, although unfamiliar to some, represents a time honored practice that virtually everyone, of any age, has be shape up familiar with. With remark to our personal finances, a float is used to buy the consumer time earlier funds must be withdrawn from an account. It is advantageous to use from the sales booth of specie flow, as funds might not be open immediately to cover a check, but are expected. This gives the consumer a sharp amount of leeway in writing checks, as the float may afford the consumer several days before they must cover a check. In a business setting, things are a bit different. in that respect are still advantages that can be realized from a immediate payment flow standpoint, however the float is more of a tool than a resource for the business, and corporate use of the float has revolved more slightly profit than prevention. In every business, or household for that matter, there will always be two separate balances for cash. The first refers to the actual preserve amount on the corporate books, while the second is represented by the balance that the bank shows. The difference between these figures, or the float, means that a business can take advantage of short term cash to use for other means. For example, if a company writes $1,000 worth of checks to vendors and receives $1,000 from customers, there would be no difference in what the ... ...ve known it, is on life support. Check 21 may not have been designed for the purpose of eliminating float time, but it most certainly has achieved this as a by-product. It remains a mystery as to how much longer it will be before banks are able to spend the money to fully integrate with what has come to be known as IRDs, or image replacement documents. So in the meantime, depending upon whom you bank with, or the size of the check you write, may put whether or not your documents are electronically sent. One thing that is certain, the advantage has now swung in the direction of the banking cente r, and only time will place whether or not there will be relief under CCAF.ReferencesBankston, Karen, Still Got Float, Credit Union Management Jan2005Sisk, Michael, Its Time for a universe Check on Check 21, Bank TechnologyNews Jan2005Retrieved Apr 25, 2005 from www.ventureline.com/burnishSchneider, Ivan, Cut the Fee or Wait and See?, Bank Systems & Technology,2005, CMP media LLC. Retrieved April 26, 2005 from www.banktech.comSchneider, Ivan, The spat Over The Float, Bank Systems & Technology, 2005,CMP media LLC. Retrieved April 26, 2005 from www.banktech.com