Learn More - Click Here!

Thread Options
#1599066 - 09/01/11 02:20 PM Reg D
amberleigh Offline
Junior Member
Joined: May 2011
Posts: 34
Kansas
We have a customer that has a sweep set up on their DDA account and it pulls money from their Money Market account daily to fund the DDA account. We originally thought this would be a Reg D violation, but someone said that it isn't since both accounts are at our bank. Any help would be appreciated!

Return to Top
Operations Compliance
#1599069 - 09/01/11 02:24 PM Re: Reg D amberleigh
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
'Someone' is wrong. Any withdrawals over 6 per month is a violation of Regulation D unless they are made in person.
_________________________
My Opinions Only

Return to Top
#1599102 - 09/01/11 03:14 PM Re: Reg D Skittles
amberleigh Offline
Junior Member
Joined: May 2011
Posts: 34
Kansas
The section she is referring to is Section 204.2(d)(2). This is what she said, "The following types of transfers from a savings deposit are permissible in unlimited numbers: Section 204.2(d)(2) Automatic (preauthorized) transfers for

the purpose of paying loans at the same institution Transfers or withdrawals made by mail, messenger, automated teller machine, or in person as: Withdrawals or

Transfers to another account of the depositor at the same institution."

Return to Top
#1599117 - 09/01/11 03:25 PM Re: Reg D Skittles
Bob The Banker Offline
Platinum Poster
Bob The Banker
Joined: May 2010
Posts: 958
Originally Posted By: Duchess Skittles
'Someone' is wrong. Any withdrawals over 6 per month is a violation of Regulation D unless they are made in person.

Close, but not completely true.

The Regulation also allows transfers from the Savings Account to repay loans or associated expenses at the same instution. Also, transfers to an account held by the same person or withdrawals, are allowed by mail, messenger, telephone with check mailed to person, or by ATM in addition to in-person. But, you may set up stricter parameters.

However, as you mentioned, the "someone" is still wrong in this case.

Return to Top
#1599125 - 09/01/11 03:28 PM Re: Reg D amberleigh
Bob The Banker Offline
Platinum Poster
Bob The Banker
Joined: May 2010
Posts: 958
Originally Posted By: amberleigh
The section she is referring to is Section 204.2(d)(2). This is what she said, "The following types of transfers from a savings deposit are permissible in unlimited numbers: Section 204.2(d)(2) Automatic (preauthorized) transfers for

the purpose of paying loans at the same institution Transfers or withdrawals made by mail, messenger, automated teller machine, or in person as: Withdrawals or

Transfers to another account of the depositor at the same institution."






She is mis-interpreting the regulation. The transfers to another account of the depositor at the same institution are: "when such transfers or withdrawals are made by mail, messenger, automated teller machine, or in person or when such withdrawals are made by telephone (via check mailed to the depositor) regardless of the number of such transfers or withdrawals."

In the case you described they are not doing the transfer by mail, messenger, ATM, telephone w/ check, or in person.

Return to Top
#1599127 - 09/01/11 03:30 PM Re: Reg D Bob The Banker
Bob The Banker Offline
Platinum Poster
Bob The Banker
Joined: May 2010
Posts: 958
This should help you if the person does not want to listen to the fact they are mis-interpreting the regulation: http://www.bankersonline.com/tools/regdlimits_chart.html

Return to Top
#1599174 - 09/01/11 04:17 PM Re: Reg D Bob The Banker
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
Tagging on.... Would a return deposit item be counted for Reg D? What about check printing fees to the bank (we print our own checks)?
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

Return to Top
#1599178 - 09/01/11 04:20 PM Re: Reg D Bob The Banker
amberleigh Offline
Junior Member
Joined: May 2011
Posts: 34
Kansas
Thanks!!

Return to Top
#1599249 - 09/01/11 05:51 PM Re: Reg D Dani York, CRCM
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
Originally Posted By: Dani York
Tagging on.... Would a return deposit item be counted for Reg D? What about check printing fees to the bank (we print our own checks)?


BUMP
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

Return to Top
#1599296 - 09/01/11 06:41 PM Re: Reg D Dani York, CRCM
cbinder63 Offline

Platinum Poster
cbinder63
Joined: Dec 2001
Posts: 674
Colorado
I would not count those items against the customers account, as they did not directly control the withdrawal.
_________________________
Opinions expressed are my own.

Return to Top
#1599301 - 09/01/11 06:47 PM Re: Reg D cbinder63
BowlingQueen Offline
Power Poster
Joined: Mar 2007
Posts: 2,916
Wisconsin
We also do not count those. Just electronic transfers and debits initiated by the customer.

We would not charge a savings account for check printing fees.
_________________________
Nothing changes, if nothing changes. (from a good friend of mine) smile

Return to Top
#1599307 - 09/01/11 06:51 PM Re: Reg D BowlingQueen
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
Thanks!
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

Return to Top
#1599413 - 09/01/11 08:57 PM Re: Reg D Bob The Banker
Marqann1 Offline
New Poster
Joined: Feb 2011
Posts: 14
So to clarify the limited transactions from a savings account -transfers to another account at the same institution whether done by sweep or an automatic scheduled transfer ARE limited to the 6 per month. We were under the assumption that they were only limited IF they were for overdraft protection.

Return to Top
#1599436 - 09/01/11 09:13 PM Re: Reg D Marqann1
BowlingQueen Offline
Power Poster
Joined: Mar 2007
Posts: 2,916
Wisconsin
The restricted transactions are those that are generally “prearranged”, such as preauthorized transfers, automatic transfers, telephone agreements, telephone orders, or telephone instructions.

Examples of restricted transfers or withdrawals from savings deposit accounts are as follows:
- Third-party payment made by check, draft, debit card, or similar method
- Any type of telephone order or instruction to pay a third-party
- Any type of telephone order or instruction to transfer money to another of his/her accounts at the same bank.
- Written instructions to pay a third-party at a certain time or according to a certain schedule
- Verbal instructions to pay a third-party at a certain time or according to a certain schedule
- Written instructions to transfer money to another of his/her accounts at the same bank at a certain time or according to a certain schedule
- Verbal instructions to transfer money to another of his/her accounts at the same bank at a certain time or according to a certain schedule
- Automated clearinghouse (ACH) payment or debits


Hope that helps. smile
_________________________
Nothing changes, if nothing changes. (from a good friend of mine) smile

Return to Top
#1603601 - 09/14/11 06:26 PM Re: Reg D BowlingQueen
burgh Offline
Junior Member
Joined: Sep 2005
Posts: 40
What about incoming and outgoing wire fees?

Return to Top
#1603605 - 09/14/11 06:24 PM Re: Reg D burgh
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,644
The Swamp
Fees? I would not count a fee.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top

Moderator:  Andy_Z, John Burnett