Checking account

[nanato2]

JETX, I am just inserting my 2 cents worth here--

My banker told me that back in 2006, a law was passed that authorized any licensed company, to which a person writes a paper check,
or authorizes a draft, can at any time (without judgement or
court order of any kind) go into your account, and withdraw any monies owed them. The simple act of writing that check is giving them access to your account.

This scares me to no end!

Please say it ain't so!!

 

[Antigone*]

JETX, I am just inserting my 2 cents worth here--

My banker told me that back in 2006, a law was passed that authorized any licensed company, to which a person writes a paper check,
or authorizes a draft, can at any time (without judgement or
court order of any kind) go into your account, and withdraw any monies owed them. The simple act of writing that check is giving them access to your account.

This scares me to no end!

Please say it ain't so!!

You must have misunderstood your banker. It ain't so!

It sounds like your banker may have been referring to Check 21 which was signed into law in October of 2003 and became effective October of 2004.

The law facilitates check truncation by creating a new negotiable instrument called a substitute check, which permits banks to truncate original checks, to process check information electronically, and to deliver substitute checks to banks that want to continue receiving paper checks. A substitute check is the legal equivalent of the original check and includes all the information contained on the original check. The law does not require banks to accept checks in electronic form nor does it require banks to use the new authority granted by the Act to create substitute checks.

The truth of the matter is that anyone you've given a check to knows your account number. Can they use that information to access funds without your authorization - NO.

A creditor who has a judgement against you does have the power to use the courts to take any and all funds from any account you are an owner of.