Today the Financial Services Committee passed, with bipartisan support, the Expedited Funds Availability Dollar Limits Adjustments Act of 2008, H.R. 6871, introduced by Rep. Carolyn Maloney (D-NY) together with Chairman Barney Frank (D-MA).

The bill amends the Expedited Funds Availability Act (EFAA) by increasing the amounts banks must make available to consumers the next business day after making a deposit by check from $100 to $175. Similarly, the amount banks must make available when utilizing a “hold period” on deposits held an extra day was increased from $400 to $700.  These are the first increases next-day availability since EFAA was enacted in 1987.

The Federal Reserve supported the increases, but only Congress can change the dollar thresholds made available to consumers.Rep. Maloney said today, “I thank the Chairman, Barney Frank (D-MA) and members of the Committee from both sides of the aisle for their help and support. This is a small but important step on an issue I have been working on for some time, which is the transition of our banking system to new technology that allows banks and consumers to access their money faster. I fully supported the Check 21 legislation that enabled banks to use new technology, and get their funds faster, but consumers deserve to get the same benefits. This modest measure will help those who most need prompt access to their funds.”

Full text of the bill is viewable at: http://www.thomas.gov/cgi-bin/query/D?c110:3:./temp/~c110yUanE5::

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