Substitute Checks and Your Rights—Check 21

At Greater TEXAS Federal Credit Union, we put our members first and take pride in offering a variety of financial services. Providing you with friendly and efficient service is part of our promise to you. Our commitment to our members starts with a full explanation of processes we use within the credit union. The Check Clearing for the 21st Century Act, popularly known as Check 21, was enacted in October of 2003, with an effective date of October 28, 2004. To make checks process faster, this Act permits financial institutions to replace original checks with “substitute checks.”
What is a substitute check?
A substitute check is a paper copy of an electronic image of your original check that has been used in the check clearing process. These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: “This is a legal copy of your check. You can use it the same way you would use the original check.” You may use a substitute check as proof of payment just like the original check.
This notice describes rights you have when you receive substitute checks from us. The rights within this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other laws with respect to those transactions. Please contact your nearest branch with questions regarding your rights in respect to original checks or electronic debits.
What are my rights regarding substitute checks?
In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account. For example, if you think that the credit union has withdrawn the wrong amount from your account or has withdrawn money from your account more than once for the same check. The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal, i.e. bounced check fees.
The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest or dividends on the amount of your refund if your account is an interest or dividend-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law.
If you use this procedure, you may receive up to $2,500 of your refund plus interest or dividends, if your account is interest or dividend-bearing, within 10 business days after we received your claim. You will receive the remainder of your refund plus interest or dividends, if your account is interest or dividend-bearing, no later than 45 calendar days after we received your claim.
Greater TEXAS Federal Credit Union may reverse the refund including any interest or dividends on the refund if we later are able to demonstrate that the substitute check was correctly posted to your account.
How do I make a claim for a refund?
If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at the address above in the disclosure.
You must contact the credit union within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances.
Your claim must be in writing and include all of the following:

• A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect)
• An estimate of the amount of your loss
• An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss
• A copy of the substitute check or the following information to help us identify the substitute check; the check number, the name of the person to whom you wrote the check, and the amount of the check