Fed Shifts Burden On UnauthorizedChecks
WASHINGTON - (11/29/05) -- The Federal Reserve last weekapproved amendments to its check collection rules, known as Reg CC,which make the depository institution now liable for losses fromunauthorized, remotely created checks, instead of the payinginstitution. A remotely created check generally bears a statementthat the customer authorized the check or bears the customer'sprinted or typed name. Consumers will not be held liable forunauthorized checks drawn on their accounts, the Fed said. The newrule will take effect July 1, 2006.