U.S. PIRG Consumer Blog: You Have No Check Writing Rights, Says OCC Brochure:

Last week, the nation's chief national bank regulator, the OCC, took time out from its prime directive -- to seek out and destroy strong state consumer laws. Instead, OCC published an almost ludicrous brochure called "Writing A Check: Understanding Your Rights." The brochure's own text highlights the serious flaws in consumer protection laws applying to checks, especially since the just-implemented Check 21 law (PIRG Release) accelerated the speed at which checks you write clear, without also giving you faster access to the checks you deposit.

Here are some excerpts from the brochure, which explains that your limited dispute rights depend on how a merchant or bank decides to handle your check. To be fair, some of the blame goes to Congress, but not all. The agencies lobbied Congress heavily for Check 21-- they have never lobbied Congress in favor of any consumer protection laws.

"What if something goes wrong? Different laws and rules apply, depending on how your check was processed."

"Although electronic processing might mean that the check you write will clear more quickly, the funds that you deposit might not be available to you any more quickly." [That's because Congress didn't change the law that applies to deposited checks, as it should have.]

"May I choose the processing method for my check? Not usually."

"Can I tell how my check is being processed? You probably will be able to tell how your check was processed, after the fact, by looking at your bank statement." [After the fact, very helpful.]

"Be sure that the available account balance you're counting on does not include funds from your bank's "overdraft protection" program."

[Hunh, you mean some banks offer seamy payday-loan loan-like products where you are charged $35 or more per overdraft and, even worse, your true balance is disguised so you actually think have the money in your account?" Yes, some banks do. Good question. here's a better one-- why haven't the sleazy products been banned?]

"Can I get my cancelled checks with my bank statement? No law requires your bank to send you your cancelled checks."

Next week, students, we will tackle the related question: "Why are debit card liability rights so much more anti-consumer than credit card liability rights." PIRG Fact Sheet.