“Feds plan to save a billion over 10 years” caught my eye (Jan. 23, 2013 editon of the McKinleyville Press.) Ironically they also plan to wastefully spend Trillions over the next 10 years. But banks have already saved over a billion in the past 10 years using Federal Check 21 substitute checks, a law (PL 108-100) touted to “improve the overall efficiency of the Nation’s payments systems.”
Instead of returning your paper checks, banks were allowed to give you an image of the front and back of your check with the legend “This is a legal copy of your check. You can use it the same way you would use the original check.” From the very start, banks, like Bank of America, provided only the front of the check, no back, and no legal legend.
Two years ago they even started charging monthly to get the front. They claim they have no obligation to provide what Check 21 mandates. The front of the check proves nothing more than your own check carbon copy. Without the back of the check, you have no idea who cashed the check or proof of anything. Useless!
Banks don’t keep electronic records after seven years, so eventually there is no “trail to follow” on your 30-year home mortgage. Letters can be ignored. The squiggled initial on the certified mail postcard proves nothing, and then you hear “we have no record of having received your letter.” Underemployed incompetent lawyers love it. As our money says, “In Gov we trust.”