Gary Hart: “I rise in support of H.R. 1474. A lot of people are not familiar with the legislation. We have been calling it ``check…”

“I rise in support of H.R. 1474. A lot of people are not familiar with the legislation. We have been calling it ``check truncation.'' The official title is Check Clearing for the 21st Century Act. Our truncated name is Check 21. This legislation holds the promise of a more efficient check collection system by removing legal barriers to the full utilization of new technologies. It is a win for consumers. It is a win for the financial services industry. It will empower banks to help prevent fraud. It will empower consumers to have more control over their accounts and more efficiency in the transfer of their funds. Our current check system's legal framework has not kept up with technological advances and has constrained the efforts of many banks to use innovations like digital check imaging to improve check processing efficiency, providing improved service to customers and substantial reductions in transportation and other check processing costs. This digital check imaging looks like a check. It simply is a copy that is transferable digitally, transferable more quickly, than a paper check. It also can be copied and utilized just like a canceled check. It is important to implement the technological advances made in the field of payment systems so that we provide customers with expedited access to capital, to credit, yet they will be ensured that they are protected from fraud.”