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#2263907 - 12/21/21 09:37 PM Consumer or entity accounts for Disclosure purpose
Paul Offline
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Joined: Jan 2019
Posts: 41
Are deposits made by a trust account considered consumer or entity accounts for regulatory/consumer disclosure purposes.

For example 1) John Smith Insurance Trust or 2) John Smith Trust FBO Peter Smith.

Thank you,

Paul

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#2263912 - 12/21/21 11:03 PM Re: Consumer or entity accounts for Disclosure purpose Paul
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
If you are referring to Reg DD:

(h) Consumer means a natural person who holds an account primarily for personal, family, or household purposes, or to whom such an account is offered. The term does not include a natural person who holds an account for another in a professional capacity.

You would have to look at the definitions within each regulation you are questioning.
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#2263913 - 12/21/21 11:51 PM Re: Consumer or entity accounts for Disclosure purpose Paul
Paul Offline
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Joined: Jan 2019
Posts: 41
Thank you. What is confusing me is that under Reg. DD I agree, it is not a consumer account, but based on what I read on another BOL forum it appears that for Ref CC purposes they are considered consumers. If I am understanding you correctly it appears to depend on the specific regulation; am I correct?

Thank you,

Paul

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#2263919 - 12/22/21 02:35 PM Re: Consumer or entity accounts for Disclosure purpose Paul
rlcarey Online
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rlcarey
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Galveston, TX
Yes, it does depend greatly on the individual regulation. Regulation CC is not actually a consumer regulation, it applies to business accounts also. There are some different nuances for handling business accounts available in the regulation, but the basic principles of the regulation apply to businesses and consumers equally.
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#2263948 - 12/22/21 06:51 PM Re: Consumer or entity accounts for Disclosure purpose Paul
John Burnett Offline
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John Burnett
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Cape Cod
Under Reg CC you can have a different availability policy for consumer accounts and business accounts. You can give a business a one-time exception notice for large deposits or redeposited checks that covers future deposits. For consumer accounts, you have to provide an exception notice for those two reasons for each affected deposit.

When you make an availability policy change, the regulation requires you notify owners of consumer accounts, but notice to business accounts for such a change isn't required by the regulation (it may be contractually required, or just plain good business practice, however).
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#2263949 - 12/22/21 06:52 PM Re: Consumer or entity accounts for Disclosure purpose Paul
John Burnett Offline
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John Burnett
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Cape Cod
So, it is not a consumer protection regulation (but it's a little more protective of consumers than of businesses).
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#2263965 - 12/22/21 08:18 PM Re: Consumer or entity accounts for Disclosure purpose Paul
Paul Offline
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Joined: Jan 2019
Posts: 41
Thank you both

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