Agencies Propose Amendments to Regulation CC Regarding Funds Availability

WASHINGTON, D.C. —
The Bureau of Consumer Financial Protection and the Federal Reserve Board today
jointly proposed amendments to Regulation CC that would implement a statutory
requirement to adjust for inflation the amount of funds depository institutions
must make available to their customers. The amendments would apply in
circumstances ranging from next business day withdrawal of certain check
deposits to setting the threshold amount for determining whether an account has
been repeatedly withdrawn.

Regulation CC implements the
Expedited Funds Availability Act of 1987 (EFA Act). The Dodd-Frank Wall Street
Reform and Consumer Protection Act (Dodd-Frank Act) amended the EFA Act to grant
the Bureau and the Board joint rulemaking authority for funds-availability
schedules, disclosure policies, payment of interest, and other EFA Act
provisions implemented by Regulation CC.

The Dodd-Frank Act amendments
require that the EFA Act’s dollar amounts be inflation adjusted every five
years by the annual percentage increase in the Consumer Price Index for Urban
Wage Earners and Clerical Workers (CPI-W). The first set of proposed adjustments
are detailed in the attached Federal Register notice. To help ensure that institutions
have sufficient time to implement the adjustments, the agencies propose a
compliance date that would be at least 12 months after publication of a final
rule in the Federal Register.

The agencies also propose to
implement in Regulation CC, EFA Act amendments made by the Economic Growth,
Regulatory Relief, and Consumer Protection Act, which include extending
coverage of the EFA Act to American Samoa, the Commonwealth of the Northern
Mariana Islands, and Guam.

Finally, the agencies are providing an additional
opportunity for public comment on certain funds-availability amendments in
subpart B of Regulation CC that the Board published in 2011 regarding funds
availability schedule provisions and associated definitions. In taking this
step, the agencies have not made a decision on whether to make any aspects of the
2011 proposal final. Reopening the comment period will provide the agencies
with up-to-date public views to consider.

The agencies are accepting
comments on all aspects of the proposed amendments for 60 days following publication
in the Federal Register.

Attachment (pdf)