Reg CC Changes Effective July 1, 2020
How It Affects Your Credit Union
Are you wondering if your forms are ready for the Reg. CC changes effective July 1 and if your credit union needs to be concerned about the Reg. CC changes effective this summer? Please read on.
What is Reg CC?
Per NCUA, Regulation CC (also known as Expedited Funds Availability) standardizes hold periods on deposits made to commercial banks and regulates institutions' use of deposit holds.
NCUA has enforcement authority for Regulation CC violations for both federal credit unions and federally insured, state-chartered credit unions.
What is changing?
The changes include increasing the next-day availability amount from $200.00 to $225.00, and all instances of the $5,000.00 amount to $5,525.00.
Your forms and disclosures are changing, too. Oak Tree is aware of the upcoming regulatory changes specific to the Expedited Funds Availability Act (Regulation CC). The Final Rule permits financial institutions to begin observing such rule prior to, but no later than, the July 1, 2020 effective date. Oak Tree has implemented the required changes and can get you on the schedule to get the necessary changes in place by the deadline.
Please keep in mind that since these particular regulatory changes will affect the entire industry, it is likely that the various data processors' upload/installation times will be negatively impacted. In the instance that your credit union wishes to adopt the changes prior to July 1, 2020, Oak Tree will do everything possible to ensure that the shorter implementation date is achieved for our customers.
What are the new deadlines?
The final date to comply with the change is July 1, 2020 and Oak Tree has already begun the process on their end. These regulatory changes will apply equally to consumer and commercial accounts alike.
Since these changes do not restrict the availability of funds, financial institutions may adopt these regulation changes on or before July 1, 2020, but then must provide notice to their members no later than 30 days after the adoption of the regulation changes.
What is next for your credit union?
Oak Tree has already made the changes to all Disclosures, and the majority of our customers have already received a proof. How about your credit union?
Thank You For Being Proactive!