Identifying Accounts With Reg E Activity

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Question:

How do most banks determine the savings accounts that have EFT or ACH withdrawals? Do they manually check the savings account for activity? My question is how do they know what savings accounts they need to drop a monthly statement for Reg purposes as opposed to Quarterly statements?

Answer:

This should be an automatic flag in your processing program. Whenever an EFT posts to an account, a monthly statement flag should be set.

If that is not available in your system, I suggest you meet with your IT staff to work on an enhancement. In the meantime, ask those folks to write you a quick and dirty program that can be run in each day's processing stream that identifies any savings account with a quarterly statement code that posted an EFT in the day's work.

You may find that you identify some accounts that always have EFTs. These accounts should be permanently set to monthly statement printing.

First published on BankersOnline.com 2/7/05