I want to make sure I am reading this correctly. It appears that if you want to use one of the safeguard exceptions for expedited recredit of an account being opened less than 30 days or excessive overdrafts, you must still provide the recredit to the account and notifiy the customer, but you can hold the avaiailability up to 45 days (or until the claim is determined valid, whichever is first)?

This doesn't make much sense to put the funds in the consumer's account but not let them use it, but that's what it looks like. I just want to confirm that this is correct. Thanks!

That is my understanding as well. At first I thought it was a Reg CC-type hold, but a second (tenth?!) reading leads me to believe that a 45-day hold is correct. I am assuming also that if the matter is not resolved by the end of 45 days, we have to release the hold and give the customer access to his funds. Correct?
BC

Ok, another question about this. Even for safeguard exceptions, the rule states that the notice must be given when recredit is made which tells the consumer the amount of the recredit and when the recredited funds will be available for withdrawal. In the case of delayed availability what do you use for the date the funds will be available? In the case of delayed availability, the rule states it must be the earlier of the date the claim is determined to be valid or the 45th calendar day after the day the claim was received. Is this the language that should be included in the letter for the date of availability? Does this really tell the consumer when to expect availability??

We came up with this:
In response to your substitute check claim, we are refunding (amount) to your account, while we complete our investigation of your claim. You may not have access to these funds until our investigation has been completed or 45 days after we received your claim, whichever is earlier. We will not impose an overdraft fee with respect to checks drawn by you on these recredited funds until the fifth calendar day after the date of this notice.

If, based on our investigation, we determine that your claim is not valid, we will reverse the refund by withdrawing the amount of the refund from your account. If any additional amount owed to you for fees or interest has been refunded to you, these amounts will be withdrawn as well. We will notify you within one day of any such reversals.

Thanks BC. Are you planning to send another notice when you make the funds available even though it isn't required?

Yes, we will probably send the C-22, 24 or 25 notice depending on the results of the investigation.
BC