"Check 21," Is it Working?

As the new year begins "Check 21" should be into full swing for most banks. But, is that the case?

"Check 21" is a new federal law that is supposed to help banks save money by allowing banks to clear and process checks electronically.

But, it will also allow your checks to clear quicker. So, if you rely on that floating period you could find more bounced checks.

One local bank president doesn't see "Check 21" working exactly like it is supposed to, at least not yet.

Tommy Ellison, Commercial Bank of Texas president, said, "There's a lot of testing that has to be done. to make sure that the images are correct and in the proper format. I think the feds, quite honestly, I think in its relation to Texas it was a little overwhelmed, and so I think that they are not able to get all the banks online within the time frames that they probably preferred to get."

Ellison says it will probably take a while for all banks to use "Check 21".