Regulation CC Delays and Overdraft Fees

When you delay the funds from a customer’s deposit beyond your normal availability schedule, Regulation CC states you must provide the customer with notification. So, for example, you likely provide them with a case-by-case hold notice or an exception hold notice, depending on the type of hold/delay. If that notice is not provided to the customer at the time of the deposit, you are prohibited from charging the customer any type of overdraft or return fee if:

  1. The overdraft/return would not have occurred if the deposit was not delayed; and,
  2. The check was ultimately paid.

Kevin explains more in the video.

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Kevin Edwards

Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).

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