House OKs Electronic Check Clearing Bill

NU Online News Service, Oct. 9, 2003, 12:12 p.m. EST – The U.S. House of Representatives approved a conference report on H.R. 1474 Wednesday by a voice vote.

The bill, the Check Clearing for the 21st Century Act, would let U.S. banks and other U.S. financial institutions clear checks by exchanging checks electronically. The bill preempts state laws that require financial institutions to return checks to the customers who wrote the checks.

Today financial institutions must present and return the original paper checks.