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Deposit Error- "Dominium's" Amount

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Question: 
Is it acceptable to not credit a customer for an error on a deposit (when performing proof of deposit) when the error is under $10.00, retaining that amount in income for the bank. I got an opinion that this was acceptable and was called "dominium's amount." If this practice is legal, should we have it disclosed in our Deposit Agreement?
Answer: 

Citizen's Bank's deposit agreement said, "All deposits are subject to verification" and it had a similar practice. The CFPB did not take too kindly to it and it cost the bank $18.5 million.

https://www.consumerfinance.gov/abo...-failing-to-credit-full-deposit-am...

Your disclosures had best very clearly describe your practices, but I'm not sure the time savings of adopting such a practice would be adequate to cover the compliance and legal risk you'd be accepting.

First published on 04/26/2020

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