What is the Expedited Funds Availability Act?

The Expedited Funds Availability Act is a federal law that governs the maximum amount of time a bank can hold onto the funds from deposited checks. The law is applicable in the state of Delaware. It states that banks must make funds available to their customers within a certain time frame. This time frame varies depending on the type of account and the type of check. Generally, banks must make the funds from non-local checks available within five business days and local checks within two business days. In the case of local checks, banks have the option to make the funds available the following day. The Expedited Funds Availability Act also limits banks from collecting a fee for early access to the deposited funds. A consumer must not be charged a fee to access the funds before the maximum period has elapsed. The Act also includes protections for consumers. It gives customers the right to challenge a bank’s processing of a check. For example, a customer can file a complaint if the bank deducts funds from their account before the maximum period has elapsed. The Expedited Funds Availability Act is beneficial for both banks and consumers. Banks can reduce the risk of fraud and consumers can have access to their funds quickly and safely.

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What is the Expedited Funds Availability Act?

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