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Deposit Error- "Dominium's" Amount

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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?

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.

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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