Learn More - Click Here!

Thread Options
#84012 - 05/30/03 06:56 PM One more Reg. CC question

We've got a Bankers Systems hold notice. In regards to availablility, it just states the number of days (2 or 5, or.....), not the actual date upon which the funds will be available. I read in the Kirchman guide that we must disclose "the day the funds will be available", so does "5 days after the date of deposit" meet the requirement? I always had hold notices that listed the # of days and the actual date.

Return to Top
Operations Compliance
#84013 - 05/30/03 06:59 PM Re: One more Reg. CC question
Kansayaku Offline
Diamond Poster
Joined: Jan 2003
Posts: 1,454
We too have that notice. We have not put the date of release on the forms but only the number of days and have never had a problem with the examiners.
I have many opinions; some are good, some are bad, and some don't contradict.

Return to Top
#84014 - 05/30/03 07:10 PM Re: One more Reg. CC question
RVFlyboy Offline
Power Poster
Joined: Oct 2000
Posts: 5,978
Soaring over Georgia
Here's what it says in the Reg CC Official Staff Commentary:

The requirement that the case-by-case hold notice state the day that funds will be made available for withdrawal may be met by stating the date or the number of business days after deposit that the funds will be made available. This requirement is satisfied if the notice provides information sufficient to indicate when funds will be available and the amounts that will be available at those times. For example, for a deposit involving more than one check, the bank need not provide a notice that discloses when funds from each individual item in the deposit will be available for withdrawal. Instead, the bank may provide a total dollar amount for each of the time periods when funds will be available, or provide the customer with an explanation of how to determine the amount of the deposit that will be held and when the held funds will be available for withdrawal
Jim Bedsole, CRCM, CBA, CFSA, CAFP
My posts - my opinions

Return to Top
#84015 - 05/30/03 07:15 PM Re: One more Reg. CC question
Ted Dreyer Offline
Diamond Poster
Ted Dreyer
Joined: Apr 2001
Posts: 2,245
If you look at the Reg CC model notices (C-12 through C-16 in Appendix C) they say "These funds will be available on the ( number ) business day after the day of your deposit.". Under Reg CC, if you properly use the model forms you are considered to be in compliance.

Return to Top
#84016 - 05/31/03 02:08 AM Re: One more Reg. CC question
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
IMHO, there are two basic reasons that banks show the actual date vs. the number of days:
1. Because the teller or ops staff uses the hold notice to input and/or call back into the system the date when the funds will be available.
2. It's a more "user-friendly" notice to the customer. (Unless of course you want to use that opportunity to hand your customer a free bank calendar so they can look up the dates themselves. Does anyone still give away calendars?)

However, as noted above, stating the number of days is still within compliance.
Regulations are a poor substitute for ethics.
Just sayin'

Return to Top
#84017 - 06/02/03 11:28 AM Re: One more Reg. CC question
Skittles Offline
10K Club
Joined: Sep 2002
Posts: 13,963
The main reason I request the front-line staff use days is that they tend to forget what actually counts as a business day and what doesn't. Too many errors that way.
My Opinions Only

Return to Top

Moderator:  Andy_Z, John Burnett