Beebe Warns Of New Law That Will Affect Checking Accounts

Arkansas Attorney General Mike Beebe`s office said today that a new law goes into affect next week that will change the way Arkansans` checking accounts work. Beebe said that the under the law, digital copies of checks will have the same validity as paper ones. He said it also will reduce or eliminate the length of time between the point you write the check and when the funds leave your account. The law allows your check to be handled electronically once it has been received, and just like a debit-card payment, funds may be immediately drawn from your account. Beebe warns that it will be far more difficult to stop payment on a check, there will be no more canceled check, and if your bank switches to the Check 21 system, you will no longer be able to have your original cancelled paper checks mailed back to you after they are processed. He asks Arkansans to watch their accounts closely and not to sign up for voluntary check truncation, which means you give up your rights to have copies of your substitute checks returned to you. Beebe suggests that you ask your bank about how it is handling the new regulations.