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#2274281 - 08/17/22 01:49 PM Returning HELOC check
joeball Offline
100 Club
Joined: May 2004
Posts: 170
Bluegrass State
Would returning a check drawn on a home equity line of credit be the same requirements as returning a check drawn on a consumer deposit account?
I'm no supergenius, or are I? Homer Simpson.

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Operations Compliance
#2274286 - 08/17/22 02:36 PM Re: Returning HELOC check joeball
InFairness, CRCM Offline
Platinum Poster
InFairness, CRCM
Joined: Nov 2010
Posts: 704
When returning checks drawn on HELOC accounts, be aware of the potential UDAAP implications if conditions under which a check may be dishonored are not clearly disclosed in advance. The CFPB uses this credit card convenience check as an example of an unfair practice, but it could also apply to HELOC checks.

Dishonoring credit card convenience checks without notice.
The Office of Thrift Supervision (OTS) and Federal Deposit Insurance Corporation (FDIC) brought enforcement actions against a
credit card issuer that sent convenience checks with stated credit limits and expiration dates to customers. For a significant percentage of consumers, the issuer reduced credit lines after the checks were presented, and then the issuer dishonored the consumers’ checks.
• Substantial injury. Consumers paid returned-check fees and may have experienced a negative impact on credit history.
• Not outweighed by benefits. The card issuer later reduced credit limits based on credit reviews. Based on the particular facts involved in the case, the harm to consumers from the dishonored convenience checks outweighed any benefit of using new credit reviews.
• Not reasonably avoidable. Consumers reasonably relied on their existing credit limits and expiration dates on the checks when deciding to use them for a payment. Consumers had received no notice that the checks they used were being dishonored until they learned from the payees. Thus, consumers could not reasonably have avoided the injury.
Opinions are strictly my own, and have nothing to do with my employer.

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#2274290 - 08/17/22 02:45 PM Re: Returning HELOC check joeball
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 80,336
Galveston, TX
If you are asking abut the midnight deadline for returning the check, yes that is the same.
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