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#2273758 - 08/03/22 09:38 PM Notice for accepting deposits at an ITM
dkm1982 Offline
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Joined: Aug 2008
Posts: 32
We are installing an ITM (which will accept deposits) and currently we only have ATMs and the ATMs do not accept deposits. This will cause a change in our Funds Availability Policy. Do we need to provide a 30 day advance notice to our customers OR can the notice be within 30 days of installing the ITM?

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Deposits and Payments
#2273877 - 08/08/22 08:01 PM Re: Notice for accepting deposits at an ITM dkm1982
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,700
Cape Cod
It's a Reg E disclosure concern, so we look to Reg E. Under 1005.8(a), "A financial institution shall mail or deliver a written notice to the consumer, at least 21 days before the effective date, of any change in a term or condition required to be disclosed under
§ 1005.7(b) ... if the change would result in:

(i) Increased fees for the consumer;

(ii) Increased liability for the consumer;

(iii) Fewer types of available electronic fund transfers; or

(iv) Stricter limitations on the frequency or dollar amount of transfers.

It would appear you do not need to provide notice under the regulation, but it would be good customer relations to announce the new capability. You will need to update your Reg E new account disclosures, however.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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#2274235 - 08/16/22 04:27 PM Re: Notice for accepting deposits at an ITM dkm1982
Nickel0207 Offline
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Joined: Jul 2017
Posts: 25
What about Reg CC. 229.18(e)?

Official Interpretation
E. 229.18(e) Changes in Policy
1. This paragraph requires banks to send notices to their customers when the banks change their availability policies with regard to consumer accounts. A notice may be given in any form as long as it is clear and conspicuous. If the bank gives notice of a change by sending the customer a complete new availability disclosure, the bank must direct the customer to the changed terms in the disclosure by use of a letter or insert, or by highlighting the changed terms in the disclosure.

2. Generally, a bank must send a notice at least 30 calendar days before implementing any change in its availability policy. If the change results in faster availability of deposits—for example, if the bank changes its availability for nonlocal checks from the fifth business day after deposit to the fourth business day after deposit—the bank need not send advance notice. The bank must, however, send notice of the change no later than 30 calendar days after the change is implemented. A bank is not required to give a notice when there is a change in appendix B (reduction of schedules for certain nonlocal checks).

3. A bank that has provided its customers with a list of ATMs under §229.16(b)(5) shall provide its customers with an updated list of ATMs once a year if there are changes in the list of ATMs previously disclosed to the customers.

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#2274611 - 08/23/22 09:40 PM Re: Notice for accepting deposits at an ITM John Burnett
c@c Offline
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Joined: Mar 2008
Posts: 113
Hopping on this thread because it seems similar to my question. Our Reg E disclosure states that our ATM accepts deposits but does not state that there are limits in place for the amount of checks that can deposited. Because of fraud, we want to lower the limit on the amount of checks that can be deposited at an ATM.

Question #1 – Should we be disclosing the check and/or cash deposit limits that we have set for our ATMs, or can we use the exception in 1005.7 about this being a security risk and avoid disclosing the actual deposit limits?

Question #2 – If this is a Reg E issue, do we have to provide 21 day notice before we can change those limits, even if the actual limit is not disclosed to the customer? In reality, that means we have to wait 60 days because we typically disclose these sorts of changes on customer statement messages and it takes a full statement cycle + the waiting period to make sure everyone is notified.

Question #3 - It seems this same scenario would be applicable to mobile deposits as well, meaning we should be disclosing those limits in Reg E disclosures. We currently are not disclosing limits. Should we be?

I've had a couple of other compliance resources indicate this is a Reg DD issue instead of a Reg E issue since we are placing limits on the amount of deposits. That does not seem appropriate to me - this seems fully to be Reg E.
Last edited by c@c; 08/23/22 09:41 PM.
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