Article: New federal check-clearing law likely to scuttle 'float'.

Byline: Matthew Mogul

Oct. 13--A new federal check-clearing law that promises to save banks time and money is also expected to sow confusion for some consumers who find themselves hit by many more overdraft fines and fees if they try to "float" checks.

Float, the lag-time between when a check is written and when a bank withdraws the money from an account, is expected to be cut dramatically under the Check Clearing for the 21st Century Act.

Commonly called Check 21, the law goes into effect Oct. 28 and catapults the American banking system into the digital age. For decades, banks had to haul tons of checks to processing centers across the ...

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