Lobby Notice - Reg. CC
Posted By: complygirl
Lobby Notice - Reg. CC - 02/25/10 03:30 PM
Currently our lobby notices are very similar to model C-18 (as shown below). Our policy is to generally provide next day availability, however we will delay availability from time to time by placing a case-by-case or exception hold. Instead of fifth in the last sentence, I'd like to say 7th, as this is the longest period we could hold funds (using an exception hold). Can I change this and still be in compliance? Thanks.
C-18 - Notice at locations where employees accept consumer deposits (case-by-case holds)
FUNDS AVAILABILITY POLICY
Our general policy is to allow you to withdraw funds deposited in your account on the (first) business day after the day we receive your deposit. Funds from electronic direct deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the (first) business day. Then, the funds will generally be available by the fifth business day after the day of deposit.
Posted By: corkygirl
Re: Lobby Notice - Reg. CC - 02/26/10 04:35 PM
complygirl, that's what we are doing.
Posted By: RR Joker
Re: Lobby Notice - Reg. CC - 02/26/10 06:44 PM
I don't like that language really, because the word "generally" is used...I mean, which is more likely...a case-by-case hold or an exception hold..."generally" would work for the 2 days...7 days is more of a "maximum".
Where does this notice need to be posted? We call it the "lobby" notice and currently only post it in our lobbies and teller lines; however, 229.18 states "A bank shall post (this notice) in a conspicuous place in each location where its employees receive deposits to consumer accounts."
So wouldn't these have to be at each new accounts desk and loan officers desk if they accept deposits there? Or would posting it in the lobby (which customers pass through on their way to new accounts/loan offices) be acceptable?
Posted By: Elwood P. Dowd
Re: Lobby Notice - Reg. CC - 03/26/10 05:00 PM
Only the forms peddlers say it needs to be on every desk and at every teller's station:
From the commentary:
B. 229.18(b) Locations Where Employees Accept Consumer Deposits
1. This paragraph describes the statutory requirement that a bank post in each location where its employees accept consumer deposits a notice of its availability policy pertaining to consumer accounts. The notice that is required must specifically state the availability periods for the various deposits that may be made to consumer accounts. The notice need not be posted at each teller window, but the notice must be posted in a place where consumers seeking to make deposits are likely to see it before making their deposits. For example, the notice might be posted at the point where the line forms for teller service in the lobby. The notice is not required at any drive-through teller windows nor is it required at night depository locations, or at locations where consumer deposits are not accepted.A bank that acts as a contractual branch at a particular location must include the availability policy that applies to its own customers but need not include the policy that applies to the customers of the bank for which it is acting as a contractual branch.
Posted By: LuvCompliance
Re: Lobby Notice - Reg. CC - 03/27/10 02:41 AM
Due to check processing center consolidation we no longer have non-local checks, therefore we changed the last sentence to second business day. And yes, in some cases we may hold longer than 2 days but decided to formally disclose "second".
Posted By: KMK
Re: Lobby Notice - Reg. CC - 05/10/11 06:13 PM
This topic has us spinning around in circles as well. So, the general consensus here is that the Reg CC lobby notice would NOT reflect the possibility of a 7-day exception hold?
Some members of our team are making the point that a customer could come back when they do not not have access to their funds on day four (because of an exception hold we placed) and point to the sign and say, "But your notice says you can only delay the availability up to the 2nd day. What gives?"
Or is that why it is called an "exception" hold in the first place? As long as the initial funds availability disclosure indicated that you reserved the right to place such an exception hold, the sign in the lobby only needs to reflect the "general" policy.
At the end of the day, we'd like to have the lobby notice reflect the 7-day maximum for an exception hold.
Posted By: Bob The Banker
Re: Lobby Notice - Reg. CC - 05/10/11 06:25 PM
This topic has us spinning around in circles as well. So, the general consensus here is that the Reg CC lobby notice would NOT reflect the possibility of a 7-day exception hold?
Some members of our team are making the point that a customer could come back when they do not not have access to their funds on day four (because of an exception hold we placed) and point to the sign and say, "But your notice says you can only delay the availability up to the 2nd day. What gives?"
Or is that why it is called an "exception" hold in the first place? As long as the initial funds availability disclosure indicated that you reserved the right to place such an exception hold, the sign in the lobby only needs to reflect the "general" policy.
At the end of the day, we'd like to have the lobby notice reflect the 7-day maximum for an exception hold.
The general concensus is wrong. Your lobby notice says includes the word
GENERALLY available. 7 day is an exception, or rare instance, not a typical hold. Generally the funds are available on the 2nd day, however, in this specific circumstance, the funds were held longer.
Also, you can point your customer to the account disclosure and the "Your Ability to Withdraw Funds" section which will go into detail about the exceptions.
Posted By: Frank Ernest
Re: Lobby Notice - Reg. CC - 06/17/13 08:12 PM
We also give next day availability. My question is do we have to include the phrase "Funds from electronic direct deposits will be available on the day we receive the deposit.", as it indicates in sample notice C-18, or is that only suggested language?
Posted By: rlcarey
Re: Lobby Notice - Reg. CC - 06/17/13 08:22 PM
I don't understand your question? Why would you choose not to use the model language. And are you suggesting that you do not allow availability on a direct deposit until the next business day after receipt?
Posted By: Frank Ernest
Re: Lobby Notice - Reg. CC - 06/17/13 08:49 PM
A review of the notice revealed that the phrase is not in the notice. It will cost quite a bit to have it added to signs in all branches and if it is not absolutely required I don't want to go to the added expense. Of course if it is required we will make the change. I did not mean to infer that we didn't give same day credit, just whether we need to say so on the notice.
Posted By: rlcarey
Re: Lobby Notice - Reg. CC - 06/17/13 08:58 PM
I will let you be the judge:
B. 229.18(b) Locations Where Employees Accept Consumer Deposits
1. This paragraph describes the statutory requirement that a bank post in each location where its employees accept consumer deposits a notice of its availability policy pertaining to consumer accounts. The notice that is required must specifically state the availability periods for the various deposits that may be made to consumer accounts.
There usually is a reason why phrases are in the model language.
A review of the notice revealed that the phrase is not in the notice. It will cost quite a bit to have it added to signs in all branches and if it is not absolutely required I don't want to go to the added expense. Of course if it is required we will make the change. I did not mean to infer that we didn't give same day credit, just whether we need to say so on the notice.
I would paste it on to the signs until they can be changed.
Posted By: Elwood P. Dowd
Re: Lobby Notice - Reg. CC - 06/18/13 08:20 AM
Reg CC has no effect on the availability of funds from electronic deposits. The Fed's inclusion of the language in the disclosure was purely gratuitous; composing the verbiage necessary to criticize its omission would be difficult.
If they ever finalize the revisions of Regulation CC, you will probably have to revise your disclosures anyway. For me, the level of risk incurred until then would be acceptable.
Posted By: Frank Ernest
Re: Lobby Notice - Reg. CC - 06/18/13 01:15 PM
Thanks for all of the replies. I was aware of the section of the commentary that Randy quoted but my thinking was that a customer who is in the bank will not be making an electronic deposit at the time they are there and they did get that information with the disclosure so the electronic deposit statement would not be necessary in the lobby notice. I also agree that it is better to use the sample language but it has never had to be exactly as suggested as long as it still provides the required information. I would still recommend that they change the language the next time the signs are revised but I was thinking it wasn't critical and would not have to be done immediately.
Posted By: JWills, CRCM
Re: Lobby Notice - Reg. CC - 03/07/16 02:42 PM
If we use the model notice, do we need to add anything in regards to 'funds received after XXX p.m. will be credited to the next business day'?
We close at 5 p.m. with the exception of our supermarket branches which close at 6 p.m. but our daily cutoff is 5 p.m.
Posted By: Elwood P. Dowd
Re: Lobby Notice - Reg. CC - 03/07/16 03:09 PM
No.
In some sections the regulation specifically addresses circumstances where the cut-off time must be disclosed. It makes no mention of it in the section that requires the lobby notice. Combine that with fact that the Model Notice C-17 does not include it and that should end any conversation on this point.
Inserting it voluntarily would require you to keep it current. Expanding on model forms might be well intentioned and might be of benefit to customers who actually read them. Personally, I don't think anyone reads them so the point is lost on me.
Posted By: river girl
Re: Lobby Notice - Reg. CC - 04/01/16 04:26 PM
We have this sticker on our teller stations
FUNDS AVAILABILITY POLICY
Our general policy is to allow you to withdraw funds deposited in your account on the (first) business day after the day we receive your deposit. Funds from electronic direct deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the (first) business day. Then, the funds will generally be available by the fifth business day after the day of deposit.
Then we also have our full one page "policy" posted in the plexiglass compliance frame with our other required notices like HMDA, CRA, etc.
Do we need the policy to be posted in the lobby? It gives the details of the exception hold circumstances, defines business day and describes the first $500 availability, etc.
I wasn't sure from reading the regulation if we need both the teller signs and the longer policy in each lobby.
Posted By: John Burnett
Re: Lobby Notice - Reg. CC - 04/01/16 08:29 PM
"Fifth" business day? I don't think so. The Federal Reserve may be a miserable steward of this regulation, but we are responsible for updating our notices to eliminate things related to "nonlocal" checks, and we should have done it 6 years ago when the last "nonlocal" checks went off to oblivion in February 2010. Fifth business day holds are a vestige of the nonlocal check.
Posted By: river girl
Re: Lobby Notice - Reg. CC - 04/05/16 02:31 PM
Sorry about the word "fifth". I copied and pasted from an old location. The signs at the teller pods don't have the word fifth.
For my original question, do we need the brief teller signs and the full page describing actual types of transactions and days available somewhere n the lobby?
Posted By: John Burnett
Re: Lobby Notice - Reg. CC - 04/06/16 06:17 PM
The requirement is found in section 229.18(b):
(b) Locations where employees accept consumer deposits. A bank shall post in a conspicuous place in each location where its employees receive deposits to consumer accounts a notice that sets forth the time periods applicable to the availability of funds deposited in a consumer account.
It is further explained in this official comment:
1. This paragraph describes the statutory requirement that a bank post in each location where its employees accept consumer deposits a notice of its availability policy pertaining to consumer accounts. The notice that is required must specifically state the availability periods for the various deposits that may be made to consumer accounts. The notice need not be posted at each teller window, but the notice must be posted in a place where consumers seeking to make deposits are likely to see it before making their deposits. For example, the notice might be posted at the point where the line forms for teller service in the lobby. The notice is not required at any drive-through teller windows nor is it required at night depository locations, or at locations where consumer deposits are not accepted. A bank that acts as a contractual branch at a particular location must include the availability policy that applies to its own customers but need not include the policy that applies to the customers of the bank for which it is acting as a contractual branch.
I have seen branches where the bank has one of these disclosures posted at each teller station. When a branch uses a "queue" traffic management scheme, having a single copy of the notice at the head of the queue works very well, and no notice needs to be at the teller station.
What you don't want to do is put the notice on a wall somewhere that customers aren't likely to see it. I saw one bank branch that had all its regulatory notices posted on a wall behind the teller line -- about 10 feet away from the closest approach by customers -- in a font size that the average person would not be able to read unless he were only three feet away. That bank was written up in an exam before it put the notices where someone could actually read them.
Posted By: FSLICBanker
Re: Lobby Notice - Reg. CC - 09/25/17 06:44 PM
I'm trying to declutter the teller line and trying to determine the minimum regulatory Reg CC requirement for our lobby/teller line notice. Do most banks simply post the C-18 lobby notice at the teller line or the C-18 notice AND the bank's longer account opening disclosure which includes bullets for each of the exception hold types, first $200 available verbiage, the Special Rule for New Accounts verbiage, etc?
Thanks.
Posted By: rlcarey
Re: Lobby Notice - Reg. CC - 09/25/17 06:57 PM
If you are a case-by-case bank, why would you ever post anything but Model C-18. If you are not a case-by-case bank, you have to use C-17.
Model C–17 Notice at locations where employees accept consumer deposits and Model C–18 Notice at locations where employees accept consumer deposits (case-by-case holds). These models satisfy the notice requirement of §229.18(b). Model C–17 reflects an availability policy of holds to statutory limits on all deposits, and Model C–18 reflects a case-by-case availability policy.
Posted By: KMenard
Re: Lobby Notice - Reg. CC - 11/06/17 05:11 PM
We place case by case and exception holds...do we only post Model C-18 in our lobby? I read the commentary and know that the disclosure is not required at each teller but we don’t have a “queue†system (customers just stand around the lobby until a teller is open) to post the disclosure so would having the disclosure at the desk where the customer can complete the deposit ticket work? Also, would we need to post our full policy with branch closing times and exception hold descriptions?
§229.18(b) states:
Locations where employees accept consumer deposits. A bank shall post in a conspicuous place in each location where its employees receive deposits to consumer accounts a notice that sets forth the time periods applicable to the availability of funds deposited in a consumer account.
We frequently see the Model C-18 notice in the main lobby in one place. It could be where you put the FH Poster, CRA Notice, etc. or on a table where deposit slips can be completed by the customers. You only need the notice. The full policy is provided when a customer opens an applicable account.