Are there recredit rights to the consumer?
If the consumer believes that a substitute check was not properly charged to their account, recredit rights allow the consumer to pursue a correction. Check 21 also includes expedited recredit provisions for consumers who suffer a loss because of a substitute check. A consumer may file a claim for expedited recredit within 40 days of receipt of the relevant statement or substitute check if certain conditions apply. Under the legislation, every financial institution must distribute to its customers an information brochure, including descriptions of the substitute check process and consumer recredit rights.
