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#2264644 - 01/12/22 03:01 PM Funds Availability vs Next Business Day
NE Wx Forecast - Frosty Offline
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NE Wx Forecast - Frosty
Joined: Mar 2011
Posts: 441
SE, Nebraska
Many banks are still open after the business day cutoff time. Ours is one. I know some drive ups have a sign posted in the window after the cutoff time that says, "We are in the next business day for transactions" or something like that. My question is about the Regulation. I can't find anywhere where it says we have to disclose we are in the next business day (after the cutoff time). Also, online banking applies. Are we required regulation to disclose that we are in the next business day after our cutoff time?? I searched here and can't find any discussion on it.

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#2264686 - 01/12/22 08:22 PM Re: Funds Availability vs Next Business Day NE Wx Forecast - Frosty
NE Wx Forecast - Frosty Offline
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NE Wx Forecast - Frosty
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SE, Nebraska
I know there's discussion about it in the Reg CC disclosure, but there something that is telling me we should be letting people know it's after cutoff time when we're still taking deposits.

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#2264689 - 01/12/22 08:41 PM Re: Funds Availability vs Next Business Day NE Wx Forecast - Frosty
John Burnett Offline
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Cape Cod
It certainly could be considered a best practice to let them know their deposit won't post until Monday, when it's Friday late afternoon. Back when I was still at a bank, our drive-up tellers were often open after cutoff and they had a discreet but very visible sign they hung in the window with a suction cup when they had flipped to the next business day. In lobbies, tellers often cut over in sequence rather than all together, and I recall many times hearing a teller tell a customer if they needed the deposit to post today, "Sally is still on today's date, I am working on Monday's date already."
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#2264694 - 01/12/22 09:11 PM Re: Funds Availability vs Next Business Day NE Wx Forecast - Frosty
Oursisnottoreasonwhy Offline
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Oursisnottoreasonwhy
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Central Illinois
229.16(b) Reg CC - Commentary #6. The business day cut-off time used by the bank must be disclosed and if some locations have different cut-off times the bank must note this in the disclosure and state the earliest time that might apply. A bank need not list all of the different cut-off times that might apply. If a bank does not have a cut-off time prior to its closing time, the bank need not disclose a cut-off time.

229.19 (a)(5) Funds may be considered deposited on the next banking day, in the case of funds that are deposited--
(i) On a day that is not a banking day for the depositary bank; or
(ii) After a cut-off hour set by the depositary bank for the receipt of deposits of 2:00 p.m. or later, or, for the receipt of deposits at ATMs, contractual branches, or off-premise facilities, of 12:00 noon or later.
Last edited by Oursisnottoreasonwhy; 01/12/22 09:16 PM.
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#2264698 - 01/12/22 09:37 PM Re: Funds Availability vs Next Business Day NE Wx Forecast - Frosty
BrianC Offline
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Illinois
That's what needs to be included in the Reg CC disclosure given at account opening. The OP is asking what, if anything, is required to be disclosed at teller stations.

To John's point, it's good customer service to have something that notes what business day you are working on, but you won't find anything in Reg CC that mandates it.
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#2268074 - 03/23/22 12:01 AM Re: Funds Availability vs Next Business Day BrianC
theloanbug Offline
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If customer is overdrawn on Friday but makes a deposit on Saturday (only open thru drive thru on Saturdays) can you charge overdraft fees for 3 days?

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#2268077 - 03/23/22 11:21 AM Re: Funds Availability vs Next Business Day NE Wx Forecast - Frosty
rlcarey Offline
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Galveston, TX
Totally up to your depositor's agreement and when you say deposits made on Saturday will be posted. Whether your SOP presents a UDAAP however is another question.
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#2268138 - 03/23/22 11:58 PM Re: Funds Availability vs Next Business Day rlcarey
theloanbug Offline
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Only open thru drive thru. It clearly states on deposit receipt will not be posted until Monday.

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#2268143 - 03/24/22 11:12 AM Re: Funds Availability vs Next Business Day NE Wx Forecast - Frosty
rlcarey Offline
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rlcarey
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Galveston, TX
So, if your offices are open (even if it is just the drive thru), but you do not post any of the transactions, the question remains under the new UDAAP and junk fee push, whether or not this could constitute a UDAAP by the regulators. With the push by many banks to just totally eliminate overdraft fees, this fee is going to put you at a marketing disadvantage soon anyway.
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#2268167 - 03/24/22 02:32 PM Re: Funds Availability vs Next Business Day theloanbug
burkemi Offline
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Joined: Nov 2013
Posts: 522
Originally Posted by theloanbug
If customer is overdrawn on Friday but makes a deposit on Saturday (only open thru drive thru on Saturdays) can you charge overdraft fees for 3 days?

Do you mean a continuous OD fee? Customer is charged on Sat, Sun, and Mon? If so I would highly recommend against it, ESPECIALLY if your customer makes an effort to bring the balance up. This practice would really increase the UDA(A)P risk.
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#2268177 - 03/24/22 04:31 PM Re: Funds Availability vs Next Business Day theloanbug
TaraSue Offline
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Joined: Oct 2013
Posts: 47
Regulators got us on this back in 2017. We had to go back years and rebate continuous OD fees that occurred over weekends. That was actually the event that got us to eliminate continuous OD fees. Hated to have a revenue stream go away, but it just wasn't worth the extra scruitiny and did seem to unfairly target those who could least afford the fees. (I know, I know, if you can't afford a fee, don't overdraw) Anyway, the change has honestly been good. Less to monitor, customers happier, regulators happy. The revenue stream just wasn't worth the extra complications.

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