Remittance rule enforcement and the COVID-19 pandemic
06/14/2020
Did the CFPB issue a statement about enforcement of prohibitions on the use of estimates in remittance transfer disclosures in light of the COVID-19 pandemic?
John Burnett
Bio:
John Burnett joined Glia Group, Inc., and BankersOnline in 2004, and currently serves as Executive Editor. He is a 1990 honors graduate of the Stonier Graduate School of Banking and is an alumnus of the ABA National Compliance School, where he served on the faculty for several years.
John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He joined Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, as well as Clerk of the bank's holding company.
He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He is a regular presenter of BOL Learning Connect webinars and a presenter at BOL Conferences events.
Contact info:
You may contact John via email at jburnett@bankersonline.com.
Questions Answered
Estimating exchange rates after July 2020
06/07/2020
When will banks and credit unions be able to use estimated exchange rates after July 21, 2020?
HELOC Access Check to Advance Funds
06/07/2020
If a customer uses a HELOC access check to advance funds, does a transaction description other than "Advance" need to appear on the periodic statement?
More than One Account- Review All?
06/07/2020
When an account holder has more than one account and the first account review reveals that there are no protected funds and there is sufficient funds to satisfy the judgement, are we required to conduct a review on any remaining accounts? When reading section 212.5 Account Review, I am finding that we should perform an account review on all accounts. (f) Separate account reviews. The financial institution shall perform the account review separately for each account in the name of an account holder against whom a garnishment order has been issued. In performing account reviews for multiple accounts in the name of one account holder, a financial institution shall not trace the movement of funds between accounts by attempting to associate funds from a benefit payment deposited into one account with amounts subsequently transferred to another account. However, I am finding in the analysis of the final rule that agencies agree that it serves no useful purpose to follow the rule’s procedures in situations where a financial institution has made a determination not to take any action affecting an account as the result of the receipt of a garnishment order. The analysis also goes on to say that that if a financial institution will not be freezing or removing funds from an account in response to a garnishment order, then the financial institution should not perform an account review to determine if a protected amount should be established. Does this mean that we don’t have to do an account review on the remaining accounts if there are no protected funds and the amount satisfies the judgement in the first account? In our situation, the first account review did not have protected funds and the amount satisfied the judgement, but some of the remaining accounts do have protected funds. If we do have to review all accounts, even if the first review satisfies the judgement, are we still required to send the notice since other accounts did have protected funds, even though no funds were garnished from those accounts?
Opt Out Requests for Postal Items/Telephone/Email
06/07/2020
We have a customer that wants to opt out of email/mail and telephone contact with us. In fact we have no telephone number on file to contact him. He doesn't want emails or letters. My question is, are we required to comply with requests for opt out to include postal items and email?
Copy of Check to Scan for Remote Deposit Capture
06/07/2020
Is it legal for a customer of a bank to use a copy of a check (not the original because they never actually have it) to scan for Remote Deposit Capture? For example: Customer has their client send a copy of the orginal check to them with the proper endorsement on the back. This could be via an email attachment. Customer scans the check copy, front and back, into the RDC program for deposit into their account. Customer never actually receives the original check but now has credit for it.
Opt-in Requirements Under 1005.17(b)(1)
06/07/2020
The opt-in requirements under 1005.17(b)(1) state that a bank "shall not assess a fee or charge on a consumer's account for paying an ATM or one-time card transaction." Does the "one-time" term mean that we cannot charge a fee on the first transaction of two or more being paid and then we can charge a fee on the second when the consumer has not opted-in? For example, if a customer has not opted-in and an ATM causes an overdraft into the consumers account and then two EFTs are received and paid on the same day as the ATM for processing, can we charge or not an overdraft fee for any of the EFTs? On subsequent days, if the account is overdrawn by EFTs, can a fee for overdraft be charged?
Returning unauthorized ACH debits
06/07/2020
How long do we have to return an unauthorized ACH debit entry?
Using estimates in remittance disclosures
05/31/2020
When is the temporary exception allowing depository institutions to use estimates in remittance disclosures sent from consumers’ accounts due to expire?
Deadline for TRID's Loan Estimate
05/31/2020
Assume we have a real estate application with all six needed items received on the weekend when business is closed. We open only Monday - Friday but it could come in electronically. Is the deadline for TRID's loan estimate Wednesday or Thursday?
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