Transferring HELOC Funds into Checking Account

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Question:

Can we allow members to transfer funds from a HELOC to their checking account via Telebanking, Online Banking and verbal authorization over the phone to a Credit Union representative, or is there some kind of regulation which limits how members may withdraw from a HELOC?

Answer:

There are no Federal regulations that govern transfers from a HELOC to a checking account. State laws, however, may place some restictions on HELOC transactions. If it is not governed by State law, then it is up to the Credit Union to establish what types of transfers they will allow.

First published on BankersOnline.com 5/21/07