What is the Expedited Funds Availability Act?

The Expedited Funds Availability Act is a federal law that regulates the availability of funds deposited in banks and other commercial institutions in Washington. It requires these institutions to make customers’ funds available at certain times depending on the type of deposit. Generally, the act requires commercial institutions to make funds from checks deposited in person available within one business day, and funds from checks deposited by mail available within two business days. The law was passed in 1987 to reduce confusion and inconsistency among states in determining when funds from checks and other deposits are available to customers. It also established a uniform set of disclosures that banks must provide customers when they open an account. In addition, the law simplifies the process for customers to dispute the amount of funds available in their accounts. The Act requires the federal government to impose civil money penalties on any financial institution that violates its provisions. This could include banks that fail to provide customers with the disclosures required by the law, or make funds available more slowly than required. The act also provides customers with a legal remedy if their bank violates its provisions, which includes a refund of all fees charged by the bank. Additionally, customers can sue the bank for damages.

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What is the Expedited Funds Availability Act?

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