Expedited Recredit

Expedited recredits are a right you have under the Check 21 law. If there is an error related to a substitute check, the bank must provide an expedited recredit if you properly dispute the error. Let’s look closer at expedited recredits and what you can expect from them.

Note that the expedited recredit process only applies to ‘substitute checks’ under the Check 21 law.

• What is a Substitute Check?
• How the Check 21 Law Affects You

Reporting Errors

If you find an error in your checking account, and a substitute check was involved, you should report it promptly. You have 40 days from the time your bank provided the substitute check to you (or from the statement date where the error appears).

You should report the error in writing. Describe what’s wrong, how much is at stake, and exactly which check the bank needs to research. The more detail you can provide the better.

Time Frames

The bank has up to 10 days to research your claim. If they cannot resolve the issue, they must add the funds in question to your account (the ‘expedited recredit’) until they complete their research. The maximum credit you’ll receive during this period is $2500, so larger errors can be a problem.

The bank has up to 45 days to complete their research and either reject or accept your claim.