A Guide to Regulation CC Compliance - Federal Reserve Board If the availability terms on an existing account are to be changed, a new disclosure should be provided to consumer customers 30 days before the change is implemented or, if the change will improve the availability of funds to the customer, no later than 30 days after the change becomes effective
New Account Exception Hold v. Large Deposit Exception Hold - NAFCU If the amount of funds deposited by these types of checks on any given banking day exceeds $5,525, the exception hold permits the credit union to hold the excess funds Under the rule, on-us checks are not subject to their normal availability requirements
REG. CC HOLD FLOW CHART – Most Restrictive Order - Bankers Online •If account qualifiies and Official Check is deposited, place NEW ACCOUNT hold for 9 business days on all but first $5,000 of deposited checks •If account does not qualify for New Account hold, continue to next step
Availability of Funds and Collection of Checks (Regulation CC . . . The Board of Governors of the Federal Reserve System (Board) and the Consumer Financial Protection Bureau (CFPB) are amending Regulation CC, which implements the Expedited Funds Availability Act (EFA Act), to adjust for inflation dollar amounts relating to availability of funds
Funds Availability Rules (Regulation CC) Explained Reg CC does not require financial institutions to place holds, rather it allows them to for their own protection The account holder or financial institution could take a loss if a check is withdrawn next-day, then turns out to be counterfeit
Regulation CC: The Rules for Financial Institutions for July New account holds — The threshold for next-day availability of funds from certain check deposits into new accounts will also be raised from $5,525 to $6,725 Large deposit exception holds — The current threshold for classifying a deposit as “large” (presently $5,525) is scheduled to be adjusted to $6,725
How New Regulation Changes on Fund Availability Holds Will Impact . . . The following Regulation CC thresholds will increase: Minimum deposit amount: from $225 to $275; Cash withdrawal amount: from $450 to $550; Large-deposit, new-account, emergency condition, re-deposited item, reasonable cause and repeatedly overdrawn thresholds: each increasing from $5,525 to $6,725
Are there exceptions to the funds availability (hold) schedule? Regulation CC provides six exceptions that allow banks to extend deposit hold periods The exceptions are considered safeguards against risk These are the exceptions: Checks deposited to new accounts (accounts that were opened 30 or fewer days ago)
Hold Notice for New Accounts — Compliance Cohort In this Compliance Clip (video), Adam talks about the hold notice rules for New Accounts Specifically, Adam answers the question as to whether a hold notice is required when using a new account hold under Regulation CC