I'm implementing Remote Deposit Services in my bank. Our main and only customer will be a foreign bank. Basically, the foreign bank is my parent company. However, we are independent from them in terms of regulations applicability.
The foreign bank is not allowed to open US dollar accounts for their customers. Therefore, the foreign bank will purchase checks from their customers and each will be scanned through RDC. We will receive the images of the checks.
My question is: Does regulation CC apply to the foreign bank (which is my customer)?
Are deposits made on a mobile device covered under Regulation CC? If not, is it safe to say we can hold as long as we like?
We received a Fed adjustment for duplicate presentment (failure to secure) for an RDC item. The item was originally processed by our member RDC (blank endorsement) and paid in December 2017. The item was subsequently stolen from his home.
In January 2018 a second presentment was made via ATM and now includes a third party endorsement . The item was credited to the third party's account at the other financial institution of which the payee has no ownership.
Do I have any breach of warranty claim (presentment or transfer) against either the drawn on bank or the second presentment bank?
Are cell phone/mobile deposit are covered under Regulation CC?
Does the funds availability notice have to be on ATM deposit envelopes?
Are Remote Deposit customers' deposits subject to Regulation CC requirements?
Most of our customers are depositing checks remotely using a check scanner. We spot check deposits over a certain amount and have noticed occasionally some are made payable to multiple payees and they are not endorsed properly. We normally put a Reg CC hold on the deposit because most of the time the check is returned. We had one instance where the check was not returned and now the bank that issued the check is asking us for the funds back (6 months later) because of missing endorsements. We can't prevent the customer from depositing the check (unless we take the machine away), but what options do we have to get the other bank to return it, sooner than the 7 days?
One of the tellers cashed a unemployment check that had been already paid via Digital Federal Credit Union. The customer first scanned the check from home and then came to my credit union with the original check and cashed it. This customer does not have an account with us, but has an account with Digital Credit Union. Now we are left holding the original check returned as already paid. I tried contacting Digital Credit Union, but I have not recieved any response. How can I resolve this? Does my credit union have to eat it or I can claim it from Digital?
We have been offering remote deposit capture for nearly two years. The FFIEC guidance issued in January, 2009 says institutions should do a risk assessment first. We didn't. Is it too late?
If a bank converts checks deposited by a merchant by Remote Deposit Capture to ACH and the item comes back as a return, can the return be converted back to a paper IRD for redeposit?