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#1524633 - 03/21/11 05:26 PM Question re: Reg CC customer notification
Wonder Why? Offline
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Joined: Jul 2009
Posts: 70
Question regarding the upcoming customer notification:

Is a statement message indicating the change from $100 to $200 acceptable (not sure how to word it yet)
OR
Does a copy of the whole Funds Availability Disclosure with the change highlighted have to be provided?

Always looking for ways to control costs on customer notifications so I am hoping to do statement messages.

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#1524658 - 03/21/11 05:46 PM Re: Question re: Reg CC customer notification Wonder Why?
abbyauditor Offline
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abbyauditor
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texas
I asked our OCC Examiners this questions and they advised that banks are not required to notify the customers of the change since the change is in the customer's favor.

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#1524668 - 03/21/11 05:56 PM Re: Question re: Reg CC customer notification abbyauditor
Doug Hendrickson Offline
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Doesn't that directly contravene Reg CC, 229.18:

(e) Changes in policy. A bank shall send a notice to holders of consumer accounts at least 30 days before implementing a change to the bank's availability policy regarding such accounts, EXCEPT that a change that expedites the availability of funds may be disclosed not later than 30 days after implementation.
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#1524670 - 03/21/11 05:58 PM Re: Question re: Reg CC customer notification Doug Hendrickson
Y'all Comply Offline
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I agree with Doug.

The commentary states:E. 229.18(e) Changes in Policy

2. Generally, a bank must send a notice at least 30 calendar days before implementing any change in its availability policy. If the change results in faster availability of deposits--for example, if the bank changes its availability for nonlocal checks from the fifth business day after deposit to the fourth business day after deposit--the bank need not send advance notice. The bank must, however, send notice of the change no later than 30 calendar days after the change is implemented.
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#1524753 - 03/21/11 07:27 PM Re: Question re: Reg CC customer notification Y'all Comply
Wonder Why? Offline
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In the Reg CC proposal that was just issued p. 19 specifically states that customer notification IS required for the change from $100 to $200.

Which brings me back to my original question----statement message or complete FA redisclosure w/change hilighted? I seem to recall something (???) about full FA redisclosure back when we had to notify customers that there were no longer non-local checks so FA timeframes were shortened and cannot locate the source now.

{of course the possibility exists that I may just be nuts and I never read that-I think a certain level of insanity is a prerequesite to work in Compliance:) )

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#1524831 - 03/21/11 08:51 PM Re: Question re: Reg CC customer notification Wonder Why?
Elwood P. Dowd Offline
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Quote:
of course the possibility exists that I may just be nuts and I never read that


The only possibility that I see here is that you are better informed than abby's OCC contact. Your customer does not need a "soup to nuts" disclosure. Your amendment simply needs to meet the general disclosure requirements: clear and conspicuous, in a form the consumer can keep, etc. Statement messages are perfect for this.

P.S. The only possible source for a statement that banks had to send a full disclosure when the check processing regions were consolidated would have been a forms vendor. wink
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#1526291 - 03/24/11 01:43 PM Re: Question re: Reg CC customer notification Elwood P. Dowd
ahkcompliance Offline
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We are planning on doing a statement message. Our forms vendors try to "sell" me on doing a full disclosure mailing. They just want the money.

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#1526459 - 03/24/11 03:41 PM Re: Question re: Reg CC customer notification ahkcompliance
Elwood P. Dowd Offline
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You'll have your chance at the possibility of mailing new disclosures when they update the model forms as proposed. There is no point in doing it twice.
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#1526569 - 03/24/11 05:49 PM Re: Question re: Reg CC customer notification Wonder Why?
bluesky Offline
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We will probably not send a customer notification on RegCC. This is definitely an issue up for debate, we'll see if the final rule specifically addresses the need for a customer notice. Since this is a Gov't initiated change and it's a positive impact, we don't think we need to mail anything to the customer. We'll wait and see.

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#1526608 - 03/24/11 06:18 PM Re: Question re: Reg CC customer notification bluesky
BrendaC Offline
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The expectations for notifying customers of changes in availability seem to be pretty well defined in Reg CC. If it is not to their benefit, 30 days notice in advance of change; and if it is to their benefit (such as provides faster availability of funds) you can notice within 30 days of change. I'm not aware of any other options available under the regulation.
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#1526937 - 03/25/11 12:49 PM Re: Question re: Reg CC customer notification BrendaC
Bob The Banker Offline
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bluesky, BrendaC is 100% correct. Read the regulation, you must provide notice within 30 days of the change (not in advance). You can take the action (or non-action) you described and not notify your customers at all, but you will not be in compliance.

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#1526948 - 03/25/11 01:02 PM Re: Question re: Reg CC customer notification bluesky
Elwood P. Dowd Offline
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There is no room for debate on the issue of whether customers are entitled to notice of the increase from $100 to $200. Even if there were, they eliminated it when they rolled out the recent proposal:

Section 1086 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) amends the EFA Act by increasing from $100 to $200 the amount of deposited funds that banks must make available for withdrawal by opening of business on the next day.30 The effective date of this provision of the act is the
“designated transfer date,” which the Secretary of the Treasury has determined to be July 21, 2011.31 This provision of the EFA Act is implemented in § 229.10(c)(1)(vii).

Additionally, the model disclosure forms set forth in current appendix C reflect the requirement that a bank must make $100 of the deposit available on the next business day. When the Dodd-Frank Act’s increase to $200 becomes effective, banks should ensure that their disclosures reflect the new funds-availability schedule and that customers are notified of the changes in policy in accordance with § 229.18(e).

Specifically, effective July 21, 2011, a bank basing its funds-availability disclosure on current model C-3, C-4, or C-5 must ensure that its disclosure indicates that the first $200(rather than $100) of a check deposit will be available on the next business day after the day of deposit
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#1527036 - 03/25/11 02:34 PM Re: Question re: Reg CC customer notification Elwood P. Dowd
bluesky Offline
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Thank you for clarifying the requirement for notifying our customers about the Reg CC change. We will most likely use a statement message for this then, much cheaper than a separate mailing.

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#1527269 - 03/25/11 07:02 PM Re: Question re: Reg CC customer notification Elwood P. Dowd
Princess of Power Offline
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Originally Posted By: Ken_Pegasus




Additionally, the model disclosure forms set forth in current appendix C reflect the requirement that a bank must make $100 of the deposit available on the next business day. When the Dodd-Frank Act’s increase to $200 becomes effective, banks should ensure that their disclosures reflect the new funds-availability schedule and that customers are notified of the changes in policy in accordance with § 229.18(e).



So one wonders is notification will be required every five years if (when) this "minimum amount" is updated every 5 years after 12/31/11 to reflect inflation ????

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#1527442 - 03/27/11 01:59 AM Re: Question re: Reg CC customer notification Princess of Power
John Burnett Offline
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One can stop wondering. Unless the regulation is changed to eliminate the need to notify customers of improved availability, one will have to send out a notification when the adjustment is made. Maybe there won't be any more checks being deposited by then? (Somewhere between a fat chance and a slim one, methinks)
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#1528867 - 03/30/11 04:07 PM Re: Question re: Reg CC customer notification John Burnett
sturner Offline
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Is anyone willing to share their ideas of a short statement message for this change? We are limited to a very small number of characters for statement messages, so was just curious what anyone had come up with. Thanks!

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#1528890 - 03/30/11 04:45 PM Re: Question re: Reg CC customer notification sturner
xerx Offline
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I'm sorry for being dense. Does this mean by July 21st of THIS YEAR, we must make $200 next-day available where before it was only $100.

And that we must send out notification by August 21st of this year?

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#1528903 - 03/30/11 05:06 PM Re: Question re: Reg CC customer notification xerx
Georgia Plum
Unregistered

Yes.

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#1528908 - 03/30/11 05:11 PM Re: Question re: Reg CC customer notification
xerx Offline
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xerx
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Where should I look to find this requirement? (I feel dumb now.)

It doesn't appear to be incorporated into Regulation CC yet.

And it's not listed on this site: http://www.philadelphiafed.org/bank-reso...ry-calendar.cfm

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#1528915 - 03/30/11 05:23 PM Re: Question re: Reg CC customer notification xerx
Georgia Plum
Unregistered

Go below and look at 229.18(e)for the notification requirements and 229.10(c)1(vii) for $100.00aavailability (which will change to $200.00 on July 21, 2011 see page 6 here http://www.bankersonline.com/topstory/76fedreg/76FR16862.pdf)

http://www.bankersonline.com/regs/229/229.html




Last edited by Georgia Plum; 03/30/11 05:42 PM.
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#1528927 - 03/30/11 05:42 PM Re: Question re: Reg CC customer notification xerx
Bob The Banker Offline
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Originally Posted By: xerx
I'm sorry for being dense. Does this mean by July 21st of THIS YEAR, we must make $200 next-day available where before it was only $100.

And that we must send out notification by August 21st of this year?


Yes and No.

You are correct that the deadline make the $200 available is July 21st.

You are incorrect in your August 21st deadline for notice. Notice must be given within 30 days of when you make the change, so if you make your change prior to July 21st, you will need to notify sooner than August 21st. Also, even if you make the change on July 21st, you will still need to notify prior to August 21st as July has 31 days, so August 21st would actually be 31 days out -- also, August 21st is a Sunday, which you are probably not working, kicking the notice back to the 22nd, 32 days later.

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#1528944 - 03/30/11 05:59 PM Re: Question re: Reg CC customer notification Bob The Banker
xerx Offline
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xerx
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Thank you both. When I last read about this change, I assumed they would update Regulation CC before I was required to make changes.

Bob-Nice analysis.

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#1529590 - 03/31/11 04:46 PM Re: Question re: Reg CC customer notification xerx
Soccer Offline
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I have a circumstance that I would like some opinions on. Our funds availability policy states that we will make funds from your deposit available to you on the next business day after we receive your deposit(for checks). This is adhered to on the teller line, however our ATM's give immediate credit. I feel that our ATM practice should be the same as our teller line. Here's the problem, because our ATM availability does not follow our disclosure and there are people who have figured it out, would we have to disclose 30 days in advance to all customers if we were to change it?
Last edited by soccer; 03/31/11 04:47 PM.
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#1529607 - 03/31/11 04:58 PM Re: Question re: Reg CC customer notification Soccer
BrendaC Offline
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Sweet Home AL
I vote yes. Your practice has created an expectation in the minds of your customers, and justifiably so. They should be provided 30 days notice of a change that is not to their benefit.
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#1529616 - 03/31/11 05:08 PM Re: Question re: Reg CC customer notification BrendaC
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Would a statement message do the trick?
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