Steve H. Powell & Company

  • Contact
  • About us
  • Management
  • Services
    • Loan Review
    • Compliance
    • Due Diligence
    • ALLL Methodology
    • Strategic Planning
  • Newsletter
  • Blog
  • Contact
  • About us
  • Management
  • Services
    • Loan Review
    • Compliance
    • Due Diligence
    • ALLL Methodology
    • Strategic Planning
  • Newsletter
  • Blog

​

Upcoming Regulation CC Changes

3/17/2020

0 Comments

 
By: Matthew Waters

On July 1, 2020, changes to Regulation CC will go into effect that will require more funds to be made available to customers when certain holds are placed.  The Consumer Financial Protection Bureau and the Federal Reserve Board jointly made an amendment to Regulation CC on June 24, 2019, to increase funds availability to compensate for inflation.  These amounts will continue to be adjusted for inflation every five years using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and rounded to the nearest multiple of $25.

The July 1 changes to availability include:
  • 229.10(c) – The minimum next-day availability will increase from $200 to $225.
  • 229.12(d) – The cash withdrawal availability will increase from $400 to $450.
  • 229.13(a) – The first $5,000 of funds availability for new account exception holds will increase from $5,000 to $5,525.
  • 229.13(b) – The first $5,000 of funds availability for large deposit exception holds will increase from $5,000 to $5,525.
  • 229.13(d)(2) –The $5,000 threshold for determining a repeat overdraft will increase from $5,000 to $5,525.
  • 229.21(a) – The civil liability will increase from a range of $100 - $1,000 to a range of $100 - $1,100 in the case of individual action.  The bank’s liability in the case of a class action will increase from $500,000 to $552,500.
​
Financial institutions should revise their Expedited Funds Availability disclosures and policies and procedures at least by the effective date of July 1, 2020, as well as inform customers of these upcoming changes not later than 30 days after implementation on July 1.  Per the commentary in the final rule, a written change-in-terms notice is required to be sent to customers, but the notice can be included on account statements (and e-statements, as applicable). Also, remember Regulation CC applies to all transaction accounts (e.g. checking, NOW), not simply consumer accounts.  If your bank decides to send out the updated Expedited Funds Availability disclosure to satisfy the change-in-terms notice requirement, remember that the commentary to Regulation CC requires that the specific changes be highlighted in some manner to bring attention to the changes themselves.  Lastly, training should be provided to applicable staff before the effective date of the changes.
 
To access the Regulation CC final rule, use the following link:
https://files.consumerfinance.gov/f/documents/cfpb_regulation-cc-amendments-joint-fr-notice.pdf

0 Comments



Leave a Reply.

    Past Articles

    All
    2017 DBF Final Rulemaking
    2017 TRID Final
    2017 Updated Guide For Servicing Rules
    2018 Compliance Updates
    April 2018 TRID Rule
    Beneficial Ownership Relief Extension
    Cashing Checks
    CFPB Annual Privacy Notice
    CFPB Prepaid Account Rule
    Commercial Real Estate
    CRA Lobby Notice
    CRE Concentrations
    Final Arbitration Rules
    FinCEN Finalizes Beneficial Ownership Relief
    HMDA Proposed Changes
    New HMDA Interpretive Rule
    Reg CC Reminder
    Regulation CC Final
    Restoration Of PTFA
    Rising Interest Rates Reg E
    SARs Data Fields
    SARs On Cyber Crime
    Second FAQs For Beneficial Ownership
    The Military Lending Act
    Visa Gross Negligence Change
    Visa & MasterCard Card Updater Services

    Archives

    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    July 2021
    May 2021
    February 2021
    January 2021
    October 2020
    August 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    March 2019
    January 2019
    September 2018
    August 2018
    June 2018
    May 2018
    April 2018
    February 2018
    January 2018
    October 2017
    August 2017
    July 2017
    June 2017
    March 2017
    February 2017
    October 2016
    September 2016
    August 2016
    June 2016

    RSS Feed

Powered by Create your own unique website with customizable templates.