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#1841947 - 08/13/13 02:08 PM Selling branch - compliance signage, etc.
sturner Offline
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Joined: May 2010
Posts: 103
Arkansas
We are in the process of selling one of our bank branches. It is scheduled to close and go to the other bank at the end of September. Currently, for Reg CC purposes, our deposit cut-off time for that branch is 4:00; however, the bank buying this branch will have a cut-off time of 2:00. We have been informed that we need to give the customers of this branch 30 day notice of this deposit cut off time change. The buyers also want to post this notice in the bank branch at the beginning of September, but the switch to the new bank isn't until the end of September. My question is, can the branch have both our notice and their notice for that month of September as long as it clearly states when theirs goes into effect?
Also, any new customers that branch were to get during September, how would we need to handle disclosures to those new accounts during this 30 day window of switching to the new branch? Do we need to give them both our notice and their notices ,etc?

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#1841952 - 08/13/13 02:17 PM Re: Selling branch - compliance signage, etc. sturner
waldensouth Offline
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waldensouth
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FINALLY ABOVE the gnat line
I'm rather interested in the fact that the purchasing bank seems to think it's your responsibility to notify the customer of the change in Reg. CC policy. When we purchase a bank, we generally leave everything alone until we actually own it. Then we schedule conversion to our systems and send a conversion booklet with all new disclosures to all existing customers.

We have sold some locations and sent out a mailing to our customer indicating that they this location was sold to XXX bank and that they would be hearing from them. This allows the purchasing bank the time to mail change notices to the customer.

I would let them handle mailing disclosures to the customer and I would ask them for a Reg. CC disclosure to provide at account opening during this transistion period.

This is an unusual way of handling in my experience, but I don't see anything wrong with it from a regulatory perspective.
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#1842075 - 08/13/13 04:42 PM Re: Selling branch - compliance signage, etc. sturner
sturner Offline
100 Club
Joined: May 2010
Posts: 103
Arkansas
Well they're real question to us was asking if they could put out their Reg CC notice in the lobby of the branch at the beginning of September (the actual conversion is the end of September).
I asked about notifying our customers because under reg CC
E. 229.18(e) Changes in Policy
1. This paragraph requires banks to send notices to their customers when the banks change their availability policies with regard to consumer accounts. A notice may be given in any form as long as it is clear and conspicuous. If the bank gives notice of a change by sending the customer a complete new availability disclosure, the bank must direct the customer to the changed terms in the disclosure by use of a letter or insert, or by highlighting the changed terms in the disclosure.


I just wasn't sure if this was also the case when the change is due to the acquiring bank's new policies, in this case, the deposit cut-off time. So would this part of the Reg, say we need to send these disclosures about this change, or the acquiring bank?

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#1842102 - 08/13/13 05:14 PM Re: Selling branch - compliance signage, etc. sturner
waldensouth Offline
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waldensouth
Joined: Nov 2001
Posts: 7,979
FINALLY ABOVE the gnat line
It's the acquiring bank's responsibility to send notices about changes to the customer's accounts as a result of this purchase. It's their changes.
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"Once you learn to read, you will be forever free."

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#1842134 - 08/13/13 06:02 PM Re: Selling branch - compliance signage, etc. sturner
John Burnett Offline
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John Burnett
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Cape Cod
It's axiomatic that the acquiring bank also acquires the compliance responsibility and needs to ensure that compliance requirements are being satisfied. For that reason, the acquiring bank takes on the notification requirements. They are showing that they understand that by asking you to put their notice in the lobby pre-closing of the deal. They may also ask you to provide mailing lists (or to mail to your customers) their notice of the change in cutoff time. But ultimately, it's their responsibility.
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