Bad News Should Travel Fast: Hot Checks, Tardy Banks, and the Uniform Commercial Code’s Rude Surprise


Each day the check collection system processes approximately 17 million checks, many of which are payable to consumers’ who trustingly deposit them in their bank accounts and soon spend the deposited funds on goods and services, necessities, and luxuries. From a consumer’s perspective, the check collection system usually works well. Indeed, less than one percent of checks are dishonored. In absolute numbers, however, dishonored checks exceed one million daily.

Suggested Reading

Luke Herrine∞ Abstract This article argues that, despite being the least discriminatory form of underwriting in history, consumer credit reporting can reinforce and deepen systemic inequalities. Credit reports can create two sorts of vicious cycles, which can contribute to cycles