Substitute Checks and Your Rights
WHAT IS A SUBSTITUTE CHECK?
Federal law allows banks to expedite check processing by replacing original checks with "substitute checks." These checks resemble originals but feature slightly smaller images of both sides. A substitute check bears the statement: "This is a legal copy of your check. You can use it the same way you would use the original check." It serves as valid proof of payment, same as the original check. When receiving checks back from us, some or all may be substitute checks. This notice outlines your rights regarding substitute checks, though it doesn't pertain to original checks or electronic debits.
WHAT ARE MY RIGHTS REGARDING SUBSTITUTE CHECKS?
Federal law offers a specific process allowing you to seek reimbursement for losses incurred due to a substitute check being debited from your account. This includes instances where you believe an incorrect amount was withdrawn or where duplicate withdrawals occurred. Recoverable losses encompass the withdrawn amount and associated fees, such as bounced check fees. The refund amount is capped at the lesser of your loss or the substitute check amount, with potential interest if your account earns interest. If your loss surpasses the substitute check amount, additional recovery may be possible under different regulations. If you utilize this procedure, you may receive up to $2,500.00 of your refund (plus the interest you are entitled to if said account is interest bearing) within ten (10) business days after we receive your claim. Within fortyf ive (45) days of receiving your claim, you may receive the remainder of your refund (plus the interest you are entitled to if said account is interest bearing). We reserve the right to reverse the refund, including any interest if applicable, if we later determine that the substitute check was processed correctly in your account.
HOW DO I MAKE A CLAIM FOR A REFUND?
If you have reason to believe that you have suffered a loss in regard to a substitute check that was provided to you and posted to your account, please contact us using the following information:
THE EASTERN COLORADO BANK Physical Address: 10 S 1st St Cheyenne Wells, CO 80810 Mailing Address: P.O. Box 888 Cheyenne Wells, CO 80810 Telephone: (866) 210 – 0460
We must receive your claim within forty (40) calendar days of sending the substitute check or the account statement that shows said substitute check, whichever is later. Due to extraordinary circumstances, this timeline may be extended at our discretion.
INFORMATION NEEDED FOR YOUR CLAIM
• The reason for the loss (ex. incorrect amount withdrawn)
• Estimated loss incurred
• An explanation as to why the substitute check was not a sufficient instrument to confirm your loss
• A copy of the substitute check or the following information: check number, check amount, date of check, and payee
