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#2272325 - 06/30/22 04:15 PM Reg CC Case by Case Notification Correction
Candice Offline
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Joined: May 2022
Posts: 3
I thought I recall f you discover and error with on a hold notice given to the customer, you had until the close of business the following day to send out a corrected notice. Is this correct? Where in the Regulation can I find reference to this?

Thank you!

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Deposits and Payments
#2272367 - 07/01/22 03:53 PM Re: Reg CC Case by Case Notification Correction Candice
Adam Witmer Offline
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Joined: Sep 2010
Posts: 2,622
229.16(C)(2)(ii) and the applicable commentary is the section on disclosures for case by case holds.

(ii) Timing of notice. The notice shall be provided to the depositor at the time of the deposit, unless the deposit is not made in person to an employee of the depositary bank or the decision to extend the time when the deposited funds will be available is made after the time of the deposit. If notice is not given at the time of the deposit, the depositary bank shall mail or deliver the notice to the customer not later than the first business day following the banking day the deposit is made.
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.

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#2272424 - 07/05/22 07:35 PM Re: Reg CC Case by Case Notification Correction Candice
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,684
Cape Cod
In other words, Candice, the regulation doesn't make allowances for errors on hold notices.

That said, if that error impacts the date or dates the customer will have access to the deposited funds, I'd strongly recommend contacting the customer as soon as possible to avoid the potential for an NSF incident.

What was the nature of the error?
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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