MyECheck, Inc. (fka MYEC)

[Krolly]

Federal Reserve Proposed Rules (Availability of Funds and Collection of Checks) Comments Received

I haven't seen this on the board, so I thought I share.

The Federal Register Proposed Rules Vol. 79 No. 23 dated February 4th, 2014 included proposed regulation to confirm electronic remotely created checks (see MYEC patent http://www.google.com/patents/us7389913#forward-citations) as a legal form of tender.

Comments were due by May 2nd, 2014 and can be accessed here http://www.federalreserve.gov/apps/foia/ViewComments.aspx?doc_id=R-1409&doc_ver=2

A few of the big guy's thoughts:

Chase
http://www.federalreserve.gov/SECRS/2014/May/20140505/R-1409/R-1409_050114_129418_367602644540_1.pdf

Bank of America
http://www.federalreserve.gov/SECRS/2014/May/20140507/R-1409/R-1409_050214_129451_523563749759_1.pdf

US Bank
http://www.federalreserve.gov/SECRS/2014/May/20140508/R-1409/R-1409_050114_129441_401574519784_1.pdf

From my reading, I see an overwhelming support for the proposed rules and based on the timelines of previous unrelated federal reserve proposals, this should go to board vote in the next few weeks. The proposed timeline for implementation by a few of the banks was 6-12 months!

After years of slow bureaucratic process, it looks like the government will be finally recognizing a fully electronic check system in the next few weeks, and a new regulation/law within a year.

When the big guys want to cut out paper check processing and ACH fees, who are they gonna call?

GO MYEC