1. Have you heard about Check 21?
2. Frequently Asked Questions
3. Substitute Checks and Your Rights

Have you heard about Check 21?

Check 21 is the short name of a new Federal law enacted by Congress that takes effect October 28, 2004. Its purpose is to make check processing and payments more efficient and will allow checks to be processed faster than ever. With Check 21, you'll be free to manage your money and accounts using the best of today's technology.

How will it affect you?

You can continue banking with First Commercial Bank as you do today. If you currently request check copies or view images online, you'll start seeing substitute checks or copies of substitute checks. If you currently receive your cancelled checks with your account statements, you may get original checks, substitute checks, or a combination of both with your statements. This will become more common as other banks start to incorporate substitute checks into their processes.

Frequently Asked Questions

How will Check 21 benefit me?

• You may have earlier access to your funds and faster, more convenient access to information about your checks - such as online images.

• You'll have better fraud protection. Faster processing means faster detection and faster resolution.

• If you detect a problem because of a substitute check, Check 21 requires that the bank re-credit your account, pending an investigation.

Will there be a fee?

There are no additional fees anticipated as a result of Check 21 or substitute checks.

What will I get back with my statement?

Not all checks you write will be changed into substitute checks. If a substitute check is created it is very possible that you will not see the original check again. If you currently receive cancelled checks with your account statement, you may begin to receive a combination of original checks and substitute checks. 

How does the Check 21 Act affect float time?  

Accelerated check processing also means a reduction in the so-called “float time”-the amount of time between the writing and cashing of a check.

What if I need to prove I paid for something?

Not a problem.  Substitute checks are treated the same as an original check under both state and federal law. If you need a copy of your cancelled check, just ask, and we will provide you with a copy.

Substitute Checks and Your Rights

What is a substitute check? 

To make check processing faster, federal law permits banks to replace original checks with “substitute checks.” These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check.  The front of a substitute check states: “This is a legal copy of your check. You can use it the same way you would use the original check.” You may use a substitute check as proof of payment just like the original check.

Some of the checks that you receive back from us may be substitute checks. This describes rights you have when you receive substitute checks from us. The rights listed here do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions. 

What are my rights regarding substitute checks?

In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, NSF fees). 

The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You are also entitled to interest on the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law.

If you use this procedure, you may receive up to $2500 of your refund (plus interest if your account earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim.

We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account. 

How do I make a claim for a refund?

If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please write or call us at First Commercial Bank, 6945 N. Clark Street, Chicago, IL 60626, (773) 761-4300. You must contact us within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances. 

Your claim must include:

• A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);

• An estimate of the amount of your loss;

• An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and

• A copy of the substitute check and/or the following information to help us identify the substitute check: the check number, the name of the person to whom you wrote the check and the amount of the check.