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#2132479 - 05/31/17 03:11 PM Reg CC Final Regulations
rlcarey Online
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rlcarey
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Galveston, TX
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#2132589 - 05/31/17 08:46 PM Re: Reg CC Final Regulations rlcarey
John Burnett Offline
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John Burnett
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I am disappointed.

But I shouldn't have expected more than what the Fed did. The new rule will be effective 7/1/18, and it will clean up a few issues. For example, it will clearly bring RDC and mRDC items under the Reg CC umbrella, and provide an indemnity for the depositary institution that takes a paper check for deposit after it's already been deposited via RDC or mRDC, UNLESS the check has a restrictive indorsement (such as "for mobile deposit only") inconsistent with the means of deposit on it. It will further persuade banks to send and accept return items electronically and will address "electronically created checks." It does not, however, do anything to remove all the "local check" and "nonlocal" check clutter in the regulation, or make any change in the current rules on delays in funds availability (statutory and exception holds) or disclosures. All of that awaits a meeting of the minds of the Fed and the Bureau which no one is making any encouraging noises about.

Perhaps the Fed's action in this chunk of the regulation will churn up some cooperative and creative juices within both the Fed and the Bureau to address "dropping the other shoe." On the other hand, we may just find that addressing this in smaller "chunks" makes the change management a bit easier.
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#2132591 - 05/31/17 08:50 PM Re: Reg CC Final Regulations rlcarey
John Burnett Offline
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Oh, I have scheduled a webinar -- "Reg CC - FINALLY a Final Rule" for August 8. Register HERE if you would like to attend. The description of the session will be posted as soon as I've composed it.
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#2132615 - 06/01/17 09:33 AM Re: Reg CC Final Regulations rlcarey
Elwood P. Dowd Offline
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Thank you.
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#2132769 - 06/01/17 07:57 PM Re: Reg CC Final Regulations rlcarey
WC Offline
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WC
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Mid West
Is my understanding correct that mRDC still cannot have a Reg CC hold placed on it? We currently reject the deposit and ask the customer to bring the item in for deposit. Thank you in advance.

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#2132771 - 06/01/17 08:10 PM Re: Reg CC Final Regulations rlcarey
John Burnett Offline
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I don't know where you got that misinformation. mRDC deposits have never actually been subject to Regulation CC at all, so the accepting bank can establish whatever funds availability policies it decides on (within reason, of course) for such checks.

Under the revised rule, effective 7/1/18, remote deposit capture items, including mRDC items, will come under the Reg CC umbrella. You'll want to beef up your requirements for accepting mRDCs to include a requirement that the depositor indorse checks for mRDC using something like this: "For mobile deposit only [indorser's signature]." And refuse any image that doesn't show the "for mobile deposit only" as part of the indorsement on the check.
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#2132777 - 06/01/17 08:19 PM Re: Reg CC Final Regulations rlcarey
WC Offline
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WC
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Mid West
Thank you John!

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#2132792 - 06/01/17 09:14 PM Re: Reg CC Final Regulations rlcarey
MBTCompliance Offline
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Should we have them endorse for mobile deposit only, and add to our bank and account number before they sign? Wouldn't this provide better protection if they try to mobile deposit a check at a different bank previously mobile deposited at ours? Or, is this part of what the Reg CC revisions will provide protection for?

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#2132893 - 06/02/17 03:37 PM Re: Reg CC Final Regulations rlcarey
John Burnett Offline
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If you want to discourage "double dipping" that's either inadvertent or fraudulent, requiring more in the indorsement (such as your bank name with or without the customer's account number) will be better than simply including "for mobile deposit." My bank only requires that I indorse with my signature when I use mobile deposit. Frankly, I think that makes it too easy to "use" the check again, whether I were to do it in error or purposefully.
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