Expedited Re-Credit Check 21

Check 21
What is it? Check 21 allows the credit union to electronically capture, transmit, and retrieve check images of all checks deposited at the credit union. This will reduce check fraud, generate faster clearing times, and allow us the ability to retrieve copies of the checks you deposit.

Disclosure Notice for Check 21

Important Information About Your Checking AccountWhat is a substitute check?
To make check processing faster, federal law permits banks and credit unions to replace original checks with “substitute checks.”  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.

Some or all of the checks that you receive back from us may be substitute checks.  This notice describes rights you have when you receive substitute checks from us.  The rights in 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.

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 we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check).

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 are also entitled to interest on the amount of your refund if your account is an interest-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 $2500 of your refund (plus interest if your account earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim.

We may reverse the refund (including any interest 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 related to a substitute check that you received and that was posted to your account, please contact us at :

Northern Hills Federal Credit Union
1080 Main Street, PO Box 759
Sturgis, SD 57785
P: (605) 347-4527  F: (605)347-3021

You must contact us 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 include:

  • 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 (and/or) the following information to help us identify the substitute check: identifying information, for example the check number, the name of the person to whom you wrote the check, the amount of the check.