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#1037110 - 09/08/08 11:40 PM 6 allowable withdrawals
Baker Offline
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Joined: Nov 2005
Posts: 781
Washington State
Regulation D states that the depositor is permitted to make no more than six withdrawals and transfers per calendar month or statement cycle or similar period of at least four weeks.
The deposit operations officer monitors a report, she noted in one case that the checks were written in the last statement cycle but did not clear until later causing the 6 limit to be exceeded in the month. The external examiner is telling us that if we do this we have to do it this way for every account. In other words, we can't look at it on a monthly basis and consider when the checks were written it has to be one or the other.

Any opinions or thoughts? Does anyone know where to find additional guidance on this.

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#1037120 - 09/09/08 12:16 AM Re: 6 allowable withdrawals Baker
rlcarey Online
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Posts: 79,926
Galveston, TX
There is no real guidance, but I agree you can't do it both ways (i.e., which ever way benefits the current customer that you are reviewing). Consistency is the key.
The opinions expressed here should not be construed to be those of my employer:

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#1037415 - 09/09/08 01:52 PM Re: 6 allowable withdrawals rlcarey
MN Banker Offline
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Posts: 980
This is from footnote 4 in Reg D:

For accounts described in 204.2(d)(2), the institution at its option may use, on a consistent basis, either the date on the check, draft, or similar item, or the date the item is paid in applying the limits imposed by that section.

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#1037837 - 09/09/08 05:58 PM Re: 6 allowable withdrawals MN Banker
Andy_Z Offline
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Posts: 27,546
On the Net
You need to analyze how often this happens and what the circumstances are, and then make your policy choice. I agree that you need to go one way or the other and be consistent about it. The last time I studied this, while we had this happen on an occasional basis, it wasn't more than three times on any one customer in a 12 month period. Your analysis may lead you to a different conclusion.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#1039837 - 09/11/08 01:42 PM Re: 6 allowable withdrawals Andy_Z
TXBSA Offline
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Joined: May 2006
Posts: 170
For checks (thrird party transactions) clearing the account isn't it only 3 per cycle anyways?

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#1040069 - 09/11/08 03:29 PM Re: 6 allowable withdrawals TXBSA
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
three per statement cycle or per calendar month, whichever you set as your rule.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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