What is the Expedited Funds Availability Act?

The Expedited Funds Availability Act is a banking law in Tennessee that was enacted to protect customers from banks that try to delay making funds available after a check is deposited. Depending on the type of check, banks usually must make the deposited funds available by the end of the second business day after the day the check was deposited. This law ensures that banks must follow the same timeline for funds availability, regardless of the source of the check. The Expedited Funds Availability Act also requires banks to disclose information about the availability of deposited funds. This information must be clearly stated in the financial institution’s written agreements with customers, and in any other written materials that describe the terms of customers’ accounts. The Act also requires that the bank provide customers with written explanation if funds are not made available according to the regulations. The Expedited Funds Availability Act is important because it guarantees customers the right to access their funds within the prescribed period of time. This law helps protect consumers from banks that try to keep their money out of their hands for an additional period of time. Furthermore, the Act ensures that banks cannot use different policies when it comes to funds availability, allowing customers to be aware of their rights.

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What is the Expedited Funds Availability Act?

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