---
kind: "section"
citation: "12 U.S.C. § 5006"
title: "12"
title_heading: "Banks and Banking"
number: "5006"
heading: "Expedited recredit for consumers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5006"
units:
  - "Chapter 50 — Check Truncation"
---

# §5006. Expedited recredit for consumers

- (a) **Recredit claims—**
  - (1) **In general—** A [consumer](/usc/12/5002.md?p=7) may make a claim for expedited recredit from the [bank](/usc/12/5002.md?p=2) that holds the [account](/usc/12/5002.md?p=1) of the [consumer](/usc/12/5002.md?p=7) with respect to a [substitute check](/usc/12/5002.md?p=16), if the [consumer](/usc/12/5002.md?p=7) asserts in good faith that—
    - (A) the [bank](/usc/12/5002.md?p=2) charged the [consumer](/usc/12/5002.md?p=7)’s [account](/usc/12/5002.md?p=1) for a [substitute check](/usc/12/5002.md?p=16) that was provided to the [consumer](/usc/12/5002.md?p=7);
    - (B) either—
      - (i) the [check](/usc/12/5002.md?p=6) was not properly charged to the [consumer](/usc/12/5002.md?p=7)’s [account](/usc/12/5002.md?p=1); or
      - (ii) the [consumer](/usc/12/5002.md?p=7) has a warranty claim with respect to such [substitute check](/usc/12/5002.md?p=16);
    - (C) the [consumer](/usc/12/5002.md?p=7) suffered a resulting loss; and
    - (D) the production of the original [check](/usc/12/5002.md?p=6) or a better copy of the original [check](/usc/12/5002.md?p=6) is necessary to determine the validity of any claim described in [subparagraph (B)](#a-1-B).
  - (2) **40-day period—** Any claim under [paragraph (1)](#a-1) with respect to a [consumer account](/usc/12/5002.md?p=8) may be submitted by a [consumer](/usc/12/5002.md?p=7) before the end of the 40-day period beginning on the later of—
    - (A) the date on which the financial institution mails or delivers, by a means agreed to by the [consumer](/usc/12/5002.md?p=7), the periodic statement of [account](/usc/12/5002.md?p=1) for such [account](/usc/12/5002.md?p=1) which contains information concerning the transaction giving rise to the claim; or
    - (B) the date on which the [substitute check](/usc/12/5002.md?p=16) is made available to the [consumer](/usc/12/5002.md?p=7).
  - (3) **Extension under extenuating circumstances—** If the ability of the [consumer](/usc/12/5002.md?p=7) to submit the claim within the 40-day period under [paragraph (2)](#a-2) is delayed due to extenuating circumstances, including extended travel or the illness of the [consumer](/usc/12/5002.md?p=7), the 40-day period shall be extended by a reasonable amount of time.
- (b) **Procedures for claims—**
  - (1) **In general—** To make a claim for an expedited recredit under [subsection (a)](#a) with respect to a [substitute check](/usc/12/5002.md?p=16), the [consumer](/usc/12/5002.md?p=7) shall provide to the [bank](/usc/12/5002.md?p=2) that holds the [account](/usc/12/5002.md?p=1) of such [consumer](/usc/12/5002.md?p=7)—
    - (A) a description of the claim, including an explanation of—
      - (i) why the [substitute check](/usc/12/5002.md?p=16) was not properly charged to the [consumer](/usc/12/5002.md?p=7)’s [account](/usc/12/5002.md?p=1); or
      - (ii) the warranty claim with respect to such [check](/usc/12/5002.md?p=6);
    - (B) a statement that the [consumer](/usc/12/5002.md?p=7) suffered a loss and an estimate of the amount of the loss;
    - (C) the reason why production of the original [check](/usc/12/5002.md?p=6) or a better copy of the original [check](/usc/12/5002.md?p=6) is necessary to determine the validity of the charge to the [consumer](/usc/12/5002.md?p=7)’s [account](/usc/12/5002.md?p=1) or the warranty claim; and
    - (D) sufficient information to identify the [substitute check](/usc/12/5002.md?p=16) and to investigate the claim.
  - (2) **Claim in writing—**
    - (A) **In general—** The [bank](/usc/12/5002.md?p=2) holding the [consumer account](/usc/12/5002.md?p=8) that is the subject of a claim by the [consumer](/usc/12/5002.md?p=7) under [subsection (a)](#a) may, in the discretion of the [bank](/usc/12/5002.md?p=2), require the [consumer](/usc/12/5002.md?p=7) to submit the information required under [paragraph (1)](#b-1) in writing.
    - (B) **Means of submission—** A [bank](/usc/12/5002.md?p=2) that requires a submission of information under [subparagraph (A)](#b-2-A) may permit the [consumer](/usc/12/5002.md?p=7) to make the submission electronically, if the [consumer](/usc/12/5002.md?p=7) has agreed to communicate with the [bank](/usc/12/5002.md?p=2) in that manner.
- (c) **Recredit to consumer—**
  - (1) **Conditions for recredit—** The [bank](/usc/12/5002.md?p=2) shall recredit a [consumer account](/usc/12/5002.md?p=8) in accordance with [paragraph (2)](#c-2) for the amount of a [substitute check](/usc/12/5002.md?p=16) that was charged against the [consumer account](/usc/12/5002.md?p=8) if—
    - (A) a [consumer](/usc/12/5002.md?p=7) submits a claim to the [bank](/usc/12/5002.md?p=2) with respect to that [substitute check](/usc/12/5002.md?p=16) that meets the requirement of [subsection (b)](#b); and
    - (B) the [bank](/usc/12/5002.md?p=2) has not—
      - (i) provided to the [consumer](/usc/12/5002.md?p=7)—
        - (I) the original [check](/usc/12/5002.md?p=6); or
        - (II) a copy of the original [check](/usc/12/5002.md?p=6) (including an image or a [substitute check](/usc/12/5002.md?p=16)) that accurately represents all of the information on the front and back of the original [check](/usc/12/5002.md?p=6), as of the time at which the original [check](/usc/12/5002.md?p=6) was truncated; and
      - (ii) demonstrated to the [consumer](/usc/12/5002.md?p=7) that the [substitute check](/usc/12/5002.md?p=16) was properly charged to the [consumer account](/usc/12/5002.md?p=8).
  - (2) **Timing of recredit—**
    - (A) **In general—** The [bank](/usc/12/5002.md?p=2) shall recredit the [consumer](/usc/12/5002.md?p=7)’s [account](/usc/12/5002.md?p=1) for the amount described in [paragraph (1)](#c-1) no later than the end of the [business day](/usc/12/5002.md?p=5) following the [business day](/usc/12/5002.md?p=5) on which the [bank](/usc/12/5002.md?p=2) determines the [consumer](/usc/12/5002.md?p=7)’s claim is valid.
    - (B) **Recredit pending investigation—** If the [bank](/usc/12/5002.md?p=2) has not yet determined that the [consumer](/usc/12/5002.md?p=7)’s claim is valid before the end of the 10th [business day](/usc/12/5002.md?p=5) after the [business day](/usc/12/5002.md?p=5) on which the [consumer](/usc/12/5002.md?p=7) submitted the claim, the [bank](/usc/12/5002.md?p=2) shall recredit the [consumer](/usc/12/5002.md?p=7)’s [account](/usc/12/5002.md?p=1) for—
      - (i) the lesser of the amount of the [substitute check](/usc/12/5002.md?p=16) that was charged against the [consumer account](/usc/12/5002.md?p=8), or $2,500, together with interest if the [account](/usc/12/5002.md?p=1) is an interest-bearing [account](/usc/12/5002.md?p=1), no later than the end of such 10th [business day](/usc/12/5002.md?p=5); and
      - (ii) the remaining amount of the [substitute check](/usc/12/5002.md?p=16) that was charged against the [consumer account](/usc/12/5002.md?p=8), if any, together with interest if the [account](/usc/12/5002.md?p=1) is an interest-bearing [account](/usc/12/5002.md?p=1), not later than the 45th calendar day following the [business day](/usc/12/5002.md?p=5) on which the [consumer](/usc/12/5002.md?p=7) submits the claim.
- (d) **Availability of recredit—**
  - (1) **Next business day availability—** Except as provided in [paragraph (2)](#d-2), a [bank](/usc/12/5002.md?p=2) that provides a recredit to a [consumer account](/usc/12/5002.md?p=8) under [subsection (c)](#c) shall make the recredited funds available for withdrawal by the [consumer](/usc/12/5002.md?p=7) by the start of the next [business day](/usc/12/5002.md?p=5) after the [business day](/usc/12/5002.md?p=5) on which the [bank](/usc/12/5002.md?p=2) recredits the [consumer](/usc/12/5002.md?p=7)’s [account](/usc/12/5002.md?p=1) under [subsection (c)](#c).
  - (2) **Safeguard exceptions—** A [bank](/usc/12/5002.md?p=2) may delay availability to a [consumer](/usc/12/5002.md?p=7) of a recredit provided under [subsection (c)(2)(B)(i)](#c-2-B-i) until the start of either the [business day](/usc/12/5002.md?p=5) following the [business day](/usc/12/5002.md?p=5) on which the [bank](/usc/12/5002.md?p=2) determines that the [consumer](/usc/12/5002.md?p=7)’s claim is valid or the 45th calendar day following the [business day](/usc/12/5002.md?p=5) on which the [consumer](/usc/12/5002.md?p=7) submits a claim for such recredit in accordance with [subsection (b)](#b), whichever is earlier, in any of the following circumstances:
    - (A) **New accounts—** The claim is made during the 30-day period beginning on the [business day](/usc/12/5002.md?p=5) the [consumer account](/usc/12/5002.md?p=8) was established.
    - (B) **Repeated overdrafts—** Without regard to the charge that is the subject of the claim for which the recredit was made—
      - (i) on 6 or more [business days](/usc/12/5002.md?p=5) during the 6-month period ending on the date on which the [consumer](/usc/12/5002.md?p=7) submits the claim, the balance in the [consumer account](/usc/12/5002.md?p=8) was negative or would have become negative if [checks](/usc/12/5002.md?p=6) or other charges to the [account](/usc/12/5002.md?p=1) had been paid; or
      - (ii) on 2 or more [business days](/usc/12/5002.md?p=5) during such 6-month period, the balance in the [consumer account](/usc/12/5002.md?p=8) was negative or would have become negative in the amount of $5,000 or more if [checks](/usc/12/5002.md?p=6) or other charges to the [account](/usc/12/5002.md?p=1) had been paid.
    - (C) **Prevention of fraud losses—** The [bank](/usc/12/5002.md?p=2) has reasonable cause to believe that the claim is fraudulent, based on facts (other than the fact that the [check](/usc/12/5002.md?p=6) in question or the [consumer](/usc/12/5002.md?p=7) is of a particular class) that would cause a well-grounded belief in the mind of a reasonable [person](/usc/12/5002.md?p=14) that the claim is fraudulent.
  - (3) **Overdraft fees—** No [bank](/usc/12/5002.md?p=2) that, in accordance with [paragraph (2)](#d-2), delays the availability of a recredit under [subsection (c)](#c) to any [consumer account](/usc/12/5002.md?p=8) may impose any overdraft fees with respect to drafts drawn by the [consumer](/usc/12/5002.md?p=7) on such recredited amount before the end of the 5-day period beginning on the date notice of the delay in the availability of such amount is sent by the [bank](/usc/12/5002.md?p=2) to the [consumer](/usc/12/5002.md?p=7).
- (e) **Reversal of recredit—** A [bank](/usc/12/5002.md?p=2) may reverse a recredit to a [consumer account](/usc/12/5002.md?p=8) if the [bank](/usc/12/5002.md?p=2)—
  - (1) determines that a [substitute check](/usc/12/5002.md?p=16) for which the [bank](/usc/12/5002.md?p=2) recredited a [consumer account](/usc/12/5002.md?p=8) under [subsection (c)](#c) was in fact properly charged to the [consumer account](/usc/12/5002.md?p=8); and
  - (2) notifies the [consumer](/usc/12/5002.md?p=7) in accordance with [subsection (f)(3)](#f-3).
- (f) **Notice to consumer—**
  - (1) **Notice if consumer claim not valid—** If a [bank](/usc/12/5002.md?p=2) determines that a [substitute check](/usc/12/5002.md?p=16) subject to the [consumer](/usc/12/5002.md?p=7)’s claim was in fact properly charged to the [consumer](/usc/12/5002.md?p=7)’s [account](/usc/12/5002.md?p=1), the [bank](/usc/12/5002.md?p=2) shall send to the [consumer](/usc/12/5002.md?p=7), no later than the [business day](/usc/12/5002.md?p=5) following the [business day](/usc/12/5002.md?p=5) on which the [bank](/usc/12/5002.md?p=2) makes a determination—
    - (A) the original [check](/usc/12/5002.md?p=6) or a copy of the original [check](/usc/12/5002.md?p=6) (including an image or a [substitute check](/usc/12/5002.md?p=16)) that—
      - (i) accurately represents all of the information on the front and back of the original [check](/usc/12/5002.md?p=6) (as of the time the original [check](/usc/12/5002.md?p=6) was truncated); or
      - (ii) is otherwise sufficient to determine whether or not the [consumer](/usc/12/5002.md?p=7)’s claim is valid; and
    - (B) an explanation of the basis for the determination by the [bank](/usc/12/5002.md?p=2) that the [substitute check](/usc/12/5002.md?p=16) was properly charged, including a statement that the [consumer](/usc/12/5002.md?p=7) may request copies of any information or documents on which the [bank](/usc/12/5002.md?p=2) relied in making the determination.
  - (2) **Notice of recredit—** If a [bank](/usc/12/5002.md?p=2) recredits a [consumer account](/usc/12/5002.md?p=8) under [subsection (c)](#c), the [bank](/usc/12/5002.md?p=2) shall send to the [consumer](/usc/12/5002.md?p=7), no later than the [business day](/usc/12/5002.md?p=5) following the [business day](/usc/12/5002.md?p=5) on which the [bank](/usc/12/5002.md?p=2) makes the recredit, a notice of—
    - (A) the amount of the recredit; and
    - (B) the date the recredited funds will be available for withdrawal.
  - (3) **Notice of reversal of recredit—** In addition to the notice required under [paragraph (1)](#f-1), if a [bank](/usc/12/5002.md?p=2) reverses a recredited amount under [subsection (e)](#e), the [bank](/usc/12/5002.md?p=2) shall send to the [consumer](/usc/12/5002.md?p=7), no later than the [business day](/usc/12/5002.md?p=5) following the [business day](/usc/12/5002.md?p=5) on which the [bank](/usc/12/5002.md?p=2) reverses the recredit, a notice of—
    - (A) the amount of the reversal; and
    - (B) the date the recredit was reversed.
  - (4) **Mode of delivery—** A notice described in this subsection shall be delivered by United States mail or by any other means through which the [consumer](/usc/12/5002.md?p=7) has agreed to receive [account](/usc/12/5002.md?p=1) information.
- (g) **Other claims not affected—** Providing a recredit in accordance with this section shall not absolve the [bank](/usc/12/5002.md?p=2) from liability for a claim made under any other law, such as a claim for wrongful dishonor under the [Uniform Commercial Code](/usc/12/5002.md?p=19), or from liability for additional damages under section [5005](/usc/12/5005.md) or [5009](/usc/12/5009.md) of this title.
- (h) **Clarification concerning consumer possession—** A [consumer](/usc/12/5002.md?p=7) who was provided a [substitute check](/usc/12/5002.md?p=16) may make a claim for an expedited recredit under this section with regard to a transaction involving the [substitute check](/usc/12/5002.md?p=16) whether or not the [consumer](/usc/12/5002.md?p=7) is in possession of the [substitute check](/usc/12/5002.md?p=16).
- (i) **Scope of application—** This section shall only apply to [customers](/usc/12/5002.md?p=9) who are [consumers](/usc/12/5002.md?p=7).

## Source credit

(Pub. L. 108–100, § 7, Oct. 28, 2003, 117 Stat. 1182.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective at the end of the 12-month period beginning on Oct. 28, 2003, see section 20 of Pub. L. 108–100, set out as a note under section 5001 of this title.