We give all our customers next day availability on their deposits. If someone brings in a check to deposit that we aren't sure about a check that the customer wants to deposit we send it for collection...we don't place holds on deposits at all. With the changes in the regulations this year we are trying to update our new account brochures. Should our Funds Availability Disclosure in our AIB state that all deposits have next day availability and that we don't place holds on any deposits instead of the language that our brochure people are saying we need to have in it about case by case holds?

Your disclosure should reflect your policy and your actual practice. If you don't apply holds, you should not disclose that you do. However, be aware that if you don't disclose up front that you may place holds, you'll be in violation of the regulation if you decide at some time to place one.

Next day availability has been our policy for years and years. Since we just send a questionable check for collection to avoid having to deal with holds (this has been our policy also for years)there is no reason to send out disclosures to our existing customers since nothing has changed even with the reg changes....right?

Right.

I think you just got John to agree to accept a "pig in a poke," something I have never been able to do. You are describing your current practices, not your current disclosure.

If your current disclosure references 5 day holds & 11 day holds as being possible (regardless your routine practices) it needs to be revised.

The pig just poked its nose out of the poke, and has to agree with Ken. Now this pig will pull its nose back in.

KBH: Policy, practice and disclosure should all jibe with one another.

There are two additional disclosures that I recommend all banks incorporate into their disclosures just in case they are ever needed. There is a hold for cashing a check, but allowing a hold to cover the funds until collected and for accepting a check deposit into one account but placing the hold on another account. These are good to have in your hold "arsenal" to protect the bank while possibly keeping a customer happy.

That's great advice...look over your disclosure for anything that could be a source of improvement and do it all at once. Oh, yeah, if you've done away with your cut-off time, delete that reference too.

Changes require customer notices. Those that are negative, 30 days in advance. Those that are positive, 30 days in arrears.