04/11/2011
I have a question with regard to Reg CC and the ever changing environment of delivery methods and new accounts. The local tax firms such as H & R Block, Joseph Hewitt, etc. are providing tax refunds via a debit card. The way I understand from a manager of H & R Block, the tax forms are submitted to the IRS for review. Once the IRS approves it and releases the funds to H & R Block, the funds are then captured on a secured server and transferred to the debit card. This would be done by H & R Block. The customer gets this card in the mail. Their PIN is the last 4 digits of their SSN. Their customer is told they can access the cash at any ATM. If we have a new customer to the bank who wants to open an account, and they present one of these debit cards to have the balance on their card as their opening deposit, would that transaction be considered a Next Day Item/Electronic Payment? For us to access the funds, we would have to process it like a Cash Advance, typically a type of transaction done with a credit card. I am thinking it would be an electronic payment, even though there is some manual process to it. Would that be correct? I know the debit card is a substitute for the check, but again to access the funds, we have to go through an electronic medium to get them. We would get an approval code on the machine and record it in our paperwork. With a Cash Advance, once we get that approval, it authorizes our bank to pay the funds. We can then deposit it to an account or give the customer cash. It would be the same process with a debit card.
02/28/2011
If a Certificate of Deposit is purchased with one or more joint owners, do all the owners have to sign the CD or just the primary owner? Often CDs are purchased by a grandparent and they list their grandchildren as co-owners but those grandchildren live in different states. It makes it difficult to mail the CD out to all them to get signatures.
01/31/2011
Do we need to post a notice concerning the Dodd-Frank Reform Act Section 343 concerning FDIC coverage? Do we need to mail a disclosure to our depositors with NOW or IOLTA accounts concerning the standard maximum deposit insurance amount of $250,000?
12/06/2010
We offer e-statements to customers. When someone signs up, he is provided the Reg E disclosure electronically at that time. Do we need to have a link to the disclosure for future reference, and specifically, the Reg E part of reviewing a statement for errors? Would a link be sufficient for people to access at any time if the language is not included on each statement?
11/29/2010
An existing borrower's property mapping changed to flood zone. The borrower's notice was faxed to him, but he didn't send the form back. The flood insurance was in place after one month. Is it in compliance?
11/15/2010
We currently have free checking at our bank. The signature card lists the type of the account as "First Free Checking". The account currently has no fees, except overdraft fees. Management intends to change the "First Free Checking" account to our "Classic Checking Account", which requires the account holder to keep a minimum balance of $300.00 in order to avoid a monthly charge of $3.50, effective January 1, 2011. The current signature cards are titled "First Free Checking". Management will send a letter addressed to the account holders affected by this change giving sufficient notice for the change in terms. I have been researching the Regs, but could not find a reference to this type of situation. I am concerned about this change from a compliance standpoint. Do we need to mail new appropriate disclosures and privacy notices with the letter? Also, what about the signature card? Do we need a new signature card reflecting the change inthe account status? Are there any other compliance issues we should be concerned with before going ahead with this change?
11/15/2010
We are starting the process leading up to electronic statements. I asked that marketing offers be optional links. I would like compliance issues, such as notices of change, to be prominent either at the top of the statement page and/or appear automatically and require action on the part of the customer to move past the notice. I don't know yet what I will get. If we have the technology to obtain customer consent to receive electronic statements, I would think this would be a piece of cake. Of course, I am not a programmer. How are others handling this?
07/26/2010
An applicant refused to answer any of the monitoring questions during a telephone application, but during the review of the typed application, he marked the appropriate boxes. Do we include the updated information on the HMDA LAR or leave it as things he does not wish to disclose? The HMDA "Getting it Right" says that we are not required to report the information, but the FFIEC Q&As say that it would be a violation to report the updated information. Could you please tell us if it is a violation to include the customer provided information and share the basis for your answer?
06/14/2010
My question involves a redisclosure of TIL combined with right of rescission. Using a real life 2010 calendar example, the redisclosed TIL was put in the mail on 4/2/10 (a Friday). Allowing three days mail time and three days for the TIL puts us to the following Friday, 4/9/10. Do I have then to wait until the following Saturday (the 10th) to mail the right of rescission forms, thereby allowing another three days mail time and the three days right of rescission, allowing me to disburse on 4/19/10?
05/24/2010
We have just been informed by the head of our compliance department that when we settle a loan that is subject to ROR, that we are to provide the customers with an "Acknowledgement of Receipt of Notice of Right to Cancel and Confirmation of Transaction" at closing. The document states:<ol><li> Three business days have elapsed since consummation of my loan, at which time I received two (2) copies of a Notice of Right to Cancel. <li>I have not exercised any right to rescind or cancel my transaction, I have no desire to do so, and I further ratify and confirm the transaction in all respects. After the rescission period has elapsed the customer is to sign and date the acknowledgement and return to us via mail or in person. We are not to disburse any of the loan funds until the customer returns the signed acknowledgement.</ol> When I questioned the compliance officer, he stated that with all the new Reg changes this has to be done. Is this acknowledgement in conjunction with the new Reg changes?