We attended the training yesterday & have a question related to page 2 of the training materials.

It indicates that "...your institution and any third-party providers involved will have to make necessary technology, policy and (very limited) consumer disclosure changes to complete your implementation of the new requirements."

What very limited consumer disclosure changes do we need to make?

Thanks.

The changes in disclosures are actually the suggestions for imposing indorsement rules on mobile deposit and RDC customers, on page 18 of the materials. If you don't already have such requirements in your agreements for mobile deposit and RDC, you'll need to notify affected customers of a change in those agreements, if your bank elects to start imposing the requirements. This change can be implemented at any time.

If you aren't already notifying customers when you receive a returned deposited item or a notice of a return in lieu or in advance of an actual return, you should be doing so. That's not a change being brought about by the Reg CC amendments. Of course, sending the customer a notice of the charge-back to his/her/its account along with the item (check, substitute check, copy of check) takes care of the notice requirement if you do it by the midnight deadline.

John,

In our RDC agreement we state that the bank may use the electronic image to create a "substitute check" as that term is defined under federal law...etc.....

I'm being asked to explain why we need to reference "substitute checks" when "electronic check" has now been defined....

An electronic check can still be converted to substitute check...just because electronic check is now defined doesn't change that....

Operations is not my area....

Won't let me edit....I was asking if that is correct....

And let me add to my question....in our RDC agreement we should still let customers know that an electronic check can be used to create a substitute check....is that correct?

Yes. Under the revisions (effective 7/1/18), RDC and mRDC images will be electronic checks, and may be reconverted to become substitute checks. They will be subject to subpart C and, as substitute checks, subpart D of Reg CC (but, alas, as Randy points out, not subpart B yet). So you can refer to the potential for the collection or return of a check truncated via RDC/mRDC as an electronic check or electronic return check or as substitute checks. I assume you want to point out that if you do a chargeback, you may provide a substitute check to the depositor.

Thanks so much, John! This helps a lot!!