You might recall that, back on July 1, 2020, certain funds availability thresholds found in Regulation CC were increased. For example, when placing a case-by-case hold, the amount to make available by the next business day increased from $200 to $225. It was also noted at that time that the applicable thresholds would begin adjusting every five years to adjust for inflation.
We have reached the five-year adjustment period and, on May 13, 2024, the CFPB and Board of Governors of the Federal Reserve System issued a Final Rule to increase the thresholds. The mandatory compliance date will be July 1, 2025.
While there are increases to several thresholds in Regulation CC, some notable ones are the case-by-case amount of $225 will increase to $275 and the large deposit amount of $5,525 will increase to $6,725. Keep in mind, this will require an update to your funds availability disclosure and, while these increases are favorable to your customers, Regulation CC still requires that a change in terms notice be provided to all affected customers within 30 days after the changes become effective.
So, be sure to add this to your 2025 compliance “to-do” list.
Published
2024/05/20