News

Consumers are clueless about upcoming ''Check 21' law

June 21, 2004

DAYTON, Ohio-An online consumer poll conducted by Harris Interactive for NCR Corporation (NYSE: NCR) confirmed that most consumers are clueless about Check 21 and its potential impact on banking practices.

According to a news release, pollsters interviewed 2,148 U.S. adults aged 18 or older in May. They found that 95 percent of checking account holders are unaware of the new legislation, technically named the Check Clearing for the 21st Century Act. The act becomes law on Oct. 28.

Check 21 allows for a substitute check (based on a digital image of the original check) to be accepted as legal in the check processing system. The imaged-based processing system seeks to remove paper checks from the processing system over time. According to a 2003 Global Concepts report, about 41 percent of U.S. banking customers currently receive cancelled paper checks in the mail.

The poll also found:

* Eighty-seven percent of respondents rated online access to cancelled checks as convenient.

* Seventy-nine percent rated receiving image-based statements as convenient.

"Many consumers like the idea of being able to search and find their own records on their own time," said Keith Taylor, senior vice president of NCR's Financial Solutions Division. "This data is encouraging for banks that may be concerned about customer acceptance of the changes."