WASHINGTON-Several influential groups from inside and outside the beltway, as well as some large banks, have signed on to a letter urging the Senate to pass the Check Truncation Act of 2003, which the House passed unanimously earlier this month. CUNA and NAFCU, as well as NACHA, The Financial Services Roundtable, Fleet Bank, IBM, American Bankers Association, America’s Community Bankers, the Independent Community Bankers of America, EDS, SunTrust Bank, Wells Fargo and others, signed the letter for a total of 35 organizations. “This legislation will provide greater long-term efficiencies to the nation’s check clearing processes. The Check Truncation Act will allow collecting financial institutions to truncate paper checks, process them electronically, and create paper substitute checks for those paying institutions and their customers desiring to continue receiving paper checks. The legislation does not mandate that financial institutions process checks electronically, but rather affords them the opportunity to adapt to the technology over time. We believe that the Act will benefit both customers and financial institutions,” the June 23 letter read. It also pointed out that the House already passed a similar bill by a vote of 405-0. In conclusion, the organizations commended Senate Banking Committee Chairman Richard Shelby (R-Ala.), Ranking Member Paul Sarbanes (D-Md.), Robert Bennett (R-Utah), and Tim Johnson (D-S.D.) for their efforts in developing the bill to create a more efficient check clearing system.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2022 ALM Global, LLC. All Rights Reserved.