Next Day - Same Day Availability

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Question:

We were recently audited and it was noted that because a customer can immediately withdraw funds from a deposit made that same day, that we should be disclosing as a same day availability bank. instead of next day availability. What is your opinion and how do you recommend wording the change on policy, notices, and disclosures? It seems most examples I find are all next day examples.

Answer:

The Federal Reserve proposed a change to Regulation CC in 2009 to require that same-day availability banks disclose if funds are to be made available on the same day. However, with the passage of the Dodd-Frank Act and the transfer of regulatory oversight of Regulation CC to the CFPB, the Federal Reserve never finalized its proposed rule. Consequently, the model language and the disclosure requirements remained unchanged.

From a UDAAP perspective, it may be a best practice to accurately disclose your policy, but in this instance you are providing availability sooner than what your policy states. I could see this as a best practice, but if I were the auditor, I would not cite it as a finding since there regulation doesn't mandate that you disclose this.