Letter to Senators Frist, McConnell, Daschle, and Reid regarding the Check Clearing for the 21st Century Act
October 14, 2003
The Honorable Bill Frist, Mitch McConnell, Tom Daschle, and Harry Reid
United States Senate
Washington, DC 20510
On behalf of the Credit Union National Association (CUNA) and the 83 million credit union members nationwide, I would like to urge the Senate to take up the conference report to H.R. 1474, the Check Clearing for the 21st Century (Check 21) Act as soon as possible.
CUNA and its member credit unions are pleased with the progress the legislation has made and are hopeful that the Check 21 Act will be enacted this year. The legislation would revolutionize the way share drafts and checks are processed by increasing the ability of financial institutions to convert paper checks into electronic checks in the check collection/return process.
Credit unions have been truncating checks since 1974, and this legislation will provide greater efficiencies in the payment system and allow existing credit union truncation programs to coexist with other financial institutions. Additionally, check truncation has already allowed credit unions to provide members (consumers) with lower fees while still providing outstanding service, and the Check 21 Act will allow for even greater savings and convenience to be passed on to our members.
Again, CUNA and its member credit unions urge the Senate's swift action on the Check 21 conference report. Thank you for your consideration.
Daniel A. Mica
President & CEO