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#173644 - 03/29/04 09:51 PM Re: HELOCS & Check 21
John Burnett Offline
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John Burnett
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Cape Cod
I'm gonna ask real nice that if you want to continue this discussion on Regulation E, you post a new thread in the Operations or General Compliance forum. Perhaps one of the trusty monitors can transfer the Reg E piece in any event?
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#173645 - 03/30/04 06:13 PM Re: HELOCS & Check conversion
DeeQ Offline
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DeeQ
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I'mmm baaaccckkk...

I think I finally got to the bottom of my IT guy's question. He was talking about check conversion to ACH the entire time... NOT CHECK 21!

I pulled up NACHA's info on check conversion and it said that it is governed by Reg E. I emailed them for an answer on HELOCs and am waiting for a reply.

Now that I think I know what I am asking, how does check conversion impact HELOCs? Is it still Reg Z or is it now Reg E?


muttering... Geez, it's only Tuesday???
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Get your facts first, then you can distort them as you please. - Mark Twain

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#173646 - 03/30/04 08:23 PM Re: HELOCS & Check conversion
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 38,722
Cape Cod
As has been said several times in the string above, transactions to or from a HELOC cannot be subject to Regulation E because a HELOC is not a consumer asset account.

So, if a check from a HELOC is converted, it's subject to NACHA rules but not subject to Reg. E. It will, of course, be subject to Regulation Z.
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John S. Burnett
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#173647 - 03/30/04 08:28 PM Re: HELOCS & Check conversion
DeeQ Offline
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DeeQ
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Thanks John, I guess I just wanted to make sure...
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Get your facts first, then you can distort them as you please. - Mark Twain

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#173648 - 03/30/04 10:25 PM Re: HELOCS & Check conversion
Kaos Offline
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Kaos
Joined: Dec 2002
Posts: 130
This is absolutely correct. I checked with my regulator today and they concur with you that the account just doesn't qualify as an asset account and therefore no Reg E. We are going to discontinue giving Reg E with our HELOCs effective immediately. Sorry for the uproar. Once again BOL is a great place to learn and unlearn compliance. Thanks!

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#173649 - 04/30/04 05:57 PM Re: HELOCS & Check 21
Kaos Offline
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Kaos
Joined: Dec 2002
Posts: 130
I needed to bump this back up. I contacted our regulator and they did confirm that Reg E does not apply to an asset account. They are not sure why we were initially told to give Reg E out on our HELOC product. We stopped the minute I hung up the phone!

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