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#304305 - 01/14/05 08:44 PM ATM Deposits/Reg CC
AMXSteve Offline
Member
Joined: Jun 2001
Posts: 75
Wilmington, OH, USA
I've searched posts regarding ATM deposits and Reg CC, but none of them covered my little twist...

We are a next day availability bank. We balance our ATM's that accept deposits everyday. When we balance the ATM, we remove any holds on cash or next day availability items.

Here's my twist: When we balance the ATM, we may want to place a case-by-case holds on some of the deposit items. In this case, we would send the customer a notice of hold.

Our bank also charges for checks drawn against unavailable funds. In our disclosure it states our policy is to make funds from cash and checks available next business day. It also goes on to say that longer delays will apply and that we will notify the customer of the longer delays. If we decide to place a case-by-case hold on the ATM deposit, does Reg. CC require us to waive any associated fees caused by the delay if the check is ultimately paid because we did not notify the customer of the hold at the time of the deposit?
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AMXSteve

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Operations Compliance
#304306 - 01/14/05 08:59 PM Re: ATM Deposits/Reg CC
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,704
Cape Cod
Unless you give the customer the hold notice at the time the deposit is made (which obviously isn't the case here) you must comply with 229.16(c)(3). This requires that you waive the fee if there would not be a fee but for the hold and the deposited check is paid by the payor bank, or include a notice that the customer may be able to obtain a waiver. Review the regulatory language for exact requirements.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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#304307 - 01/14/05 09:10 PM Re: ATM Deposits/Reg CC
AMXSteve Offline
Member
Joined: Jun 2001
Posts: 75
Wilmington, OH, USA
Thanks John,

That's exactly what I thought. Now I have to convince the others.
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AMXSteve

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