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THE EXPEDITED FUNDS AVAILABILITY ACT
HOUSE OF REPRESENTATIVES
MAY RESTRICT THE AVAILABILITY OF FUNDS
WHICH ARE DEPOSITED BY CHECK
APRIL 4, 1984
Serial No. 98-93
Printed for the use of the
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1984
HOUSE COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS
FERNAND J. ST GERMAIN, Rhode Island, Chairman HENRY B. GONZALEZ, Texas
CHALMERS P. WYLIE, Ohio JOSEPH G. MINISH, New Jersey
STEWART B. MCKINNEY, Connecticut FRANK ANNUNZIO, Illinois
GEORGE HANSEN, Idaho PARREN J. MITCHELL, Maryland
JIM LEACH, Iowa WALTER E. FAUNTROY, District of
RON PAUL, Texas Columbia
ED BETHUNE, Arkansas STEPHEN L. NEAL, North Carolina
NORMAN D. SHUMWAY, California JERRY M. PATTERSON, California
STAN PARRIS, Virginia CARROLL HUBBARD, JR., Kentucky
BILL McCOLLUM, Florida JOHN J. LAFALCE, New York
GEORGE C. WORTLEY, New York NORMAN E. D'AMOURS, New Hampshire MARGE ROUKEMA, New Jersey STAN LUNDINE, New York
BILL LOWERY, California MARY ROSE OAKAR, Ohio
DOUG BEREUTER, Nebraska BRUCE F. VENTO, Minnesota
DAVID DREIER, California DOUG BARNARD, JR., Georgia
JOHN HILER, Indiana ROBERT GARCIA, New York
THOMAS J. RIDGE, Pennsylvania
STEVE BARTLETT, Texas
SUBCOMMITTEE ON FINANCIAL INSTITUTIONS SUPERVISION, REGULATION AND
FERNAND J. ST GERMAIN, Rhode Island, Chairman FRANK ANNUNZIO, Illinois
CHALMERS P. WYLIE, Ohio
GEORGE HANSEN, Idaho
ED BETHUNE, Arkansas
STEWART B. MCKINNEY, Connecticut MARY ROSE OAKAR, Ohio
NORMAN D. SHUMWAY, California BRUCE F. VENTO, Minnesota
BILL McCOLLUM, FLORIDA ROBERT GARCIA, New York
BILL LOWERY, California CHARLES E. SCHUMER, New York
GEORGE C. WORTLEY, New York
DAVID DREIER, California
RICHARD L. Still, Subcommittee Staff Director
Text of H.R. 5301....
Carper, Hon. Thomas R., a Representative in Congress from the State of
Conover, Hon. C.T., Comptroller of the Currency, Office of the Comptroller
ations, Fiscal Service, Department of the Treasury..
Martin, Hon. Preston:
Letter to Chairman St Germain dated April 24, 1984, responding to
questions regarding actions industry groups have taken on delayed
availability and fee income banks receive from returned checks ..... 264
New York State Banking Department, News release with attached list of
institutions not in compliance with State banking board's regulation on
Letter from Louis Carter, superintendent of banks of the State of
California with attached material regarding State banking leg
islation on California banks .......... List of institutions not in compliance with State banking board's
regulation on delayed funds availability.
THE EXPEDITED FUNDS AVAILABILITY ACT
WEDNESDAY, APRIL 4, 1984
HOUSE OF REPRESENTATIVES,
SUPERVISION, REGULATION AND INSURANCE,
Washington, DC. The subcommittee met at 9:30 a.m. in room 2128 of the Rayburn House Office Building, Hon. Fernand J. St Germain (chairman of the subcommittee) presiding.
Present: Representatives St Germain, Annunzio, LaFalce, Barnard, Wylie, and McKinney.
Chairman ST GERMAIN. The subcommittee will come to order.
Should customers of depository institutions have access to their funds as fast as modern technology will allow or should financial institutions continue to move and credit checks at a pace more in keeping with the days of the pony express?
That is the question before this subcommittee. It is a question that has been posed time after time in letters and telephone calls to the committee. For the elderly, the working people, and small businesses-that do not have great surpluses in their accounts—the delays—the extended period of float-are of more than passing interest. It can be a crushing and costly matter for a person denied access to his payroll check or for a small businessman trying to pay his accounts while the local bank holds his deposits.
In fact, I may be libeling the old pony express by suggesting it moved as slowly as some banks today. Just a few weeks ago, I received a handwritten letter from a gentleman in Nevada who told me it had taken from November 8, 1983, until December 7, 1983, to transfer $3,000 from an account in New York to a bank in Nevada. And to top off the transaction, his local bank imposed an $8 fee for this fine service.
Admittedly, it is some miles between New York and Nevadaparticularly if the check was moved by bicycle courier-but let's take the case of a 45-mile trip between Lake Jackson, TX, and Houston, TX. In this instance, a woman in Lake Jackson sends us copies of the bank's collection sheet and tells us that it took from February 7 to February 29 for a $10,075 check to be transferred from her brother-in-law's account in Houston to her account in Lake Jackson. Even if the bank were moving the checks by foot, it would be hard to justify 22 days to cover 45 miles.
And the father of a military serviceman in North Carolina writes to tell us.