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CFPB and FRB Finalize Amendments to Regulation CC
michaelchristians • June 25, 2019
On Monday, June 24th the Consumer Financial Protection Bureau (“CFPB”) and Federal Reserve Board (“FRB”) jointly issued a final rule containing several amendments to Regulation CC which implements the Expedited Funds Availability Act. The rule implements a handful of statutory changes as required under the Dodd-Frank and Economic Growth, Regulatory Relief and Consumer Protection Acts.
Expanded Scope of Regulation CC
Effective 60 days following publication of the final rule in the Federal Register, financial institutions located in American Samoa, the Commonwealth of the Northern Mariana Islands and Guam will be subject to Regulation CC’s requirements.
Threshold Adjustments under Regulation CC
Effective July 1, 2020, the following amounts will be adjusted within Regulation CC:
- Next-Day Availability (§229.10)
- Increase from $200 to $225 the amount of certain check deposits that must be made available on the next business day following the date of deposit.
- Exception Hold for New Accounts (§229.13(a))
- New accounts are subject to a different availability schedule during the first 30 calendar days after they are opened. After the effective date, financial institutions may delay the availability of funds in excess of $5,525 deposited to a new account in any one banking day.
- Exception Hold for Large Deposits (§229.13(b))
- After the effective date, financial institutions may delay the availability of funds in excess of $5,525 deposited to an existing account in any one banking day.
- Definition of Repeated Overdrafts (§229.13(d))
- After the effective date, an account will be considered repeatedly overdrawn if:
- On 6 or more banking days within the preceding 6 months the account balance was negative or would have become negative had checks or other charges to the account been paid; or
- On 2 or more banking days within the preceding 6 months the account balance was negative or would have become negative in an amount of $5,525 or more.
- After the effective date, an account will be considered repeatedly overdrawn if:
Following the first round of threshold adjustments effective in 2020, these amounts will be subject to change on July 1 st every fifth year (2025, 2030, 2035, etc.) based on any aggregate percentage change to the Consumer Price Index for Urban Wage Earners and Clerical Workers (“CPI-W”).
Please contact Michael Christians Consulting, LLC for more information!
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