Question & Answer

Question: I have a question on Reg CC.If I get notification that a check is being returned, and I charge the customer's account, do I have to send him an exception notice? And if so, what is the deadline? What if it is after the funds would have been available?

Answer: You're not alone! From what I've been hearing there are a lot of bankers out there "disgusted with CC!"

You need not send an exception notice to a customer when you have charged the account due to notification of a returning item or for an actual returned item. Regulation CC does not affect your ability to make yourself whole. It is customary, however, to afford your customer the courtesy of the knowledge of the action you have taken-either by a copy of the charge to the account or a telephone call regarding the charge.

Copyright © 1990 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 1, No. 8, 8/90