Pressure Builds To Check TheFloat

WASHINGTON - (12/14/04) -- A group of Democratic lawmakers,following in the footsteps of Republican leaders, called on theFederal Reserve last week to adjust its permitted hold times onchecks in light of the expedited clearing enabled by the new Check21 law. In a letter to the Fed, Democratic members of the HouseFinancial Services Committee said the time credit unions and banksare allowed to hold checks should be shortened because of thefaster clearing time for checks created by the new law. The letter,a copy of which was obtained by The Credit Union Journal, differsslightly from one sent by Republican leaders of the committee whichurged the Fed to speed up a study of the permitted hold times, nowfive days for most checks. The Democrats said the Fed need not wait30 months after the new law to study hold times, but shouldcommence the study immediately. "Rather than wait for more than twoyears," wrote the lawmakers, "the Federal Reserve should considermaking these changes now."