If you don’t get the reference, “Ch-ch-ch-ch- changes” is from the song, “Changes” by David Bowie. I can’t believe that summer is upon us! Before you know it will be July and the fireworks, then September and Labor Day, the fall holidays, then 2025. Yikes! A few weeks ago, the Fed and the CFPB issued a final rule amending Regulation CC in regard to the dollar amount thresholds under the Expedited Funds Availability Act (EFAA) to account for that dreaded word…inflation.
The Fed and the CFPB are required to adjust the dollar amount thresholds every five years by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical-Workers (CPI-W). The inflation measurement period for this adjustment began in July 2018 and ended in July 2023.
Regulation CC, among other things, establishes financial institution requirements regarding the availability of deposits made into transaction accounts. These requirements provide specific time schedules for informing customers/members of when their funds will be available. The requirements also include that the institution disclose the schedule to customers/members so that they know when their full deposit will be available to them.
The recent changes made to Regulation CC amend the minimum amount of deposited funds that financial institutions must make available for withdrawal by opening of business on the next day. As you know, Regulation CC requires institutions to post a notice (where your members are likely to see it) that states the availability periods for various deposits. The chart below details the current thresholds that are in effect today as well as the new changes that will go into effect in 2025.
|
|
Current Threshold |
Threshold Effective July 1, 2025 |
|
Minimum Amount, see 12 CFR 229.10(c)(1)(vii) |
$225 |
$275 |
|
Cash Withdrawal Amount, see12 CFR 229.12(d) | $225 / $450 | $275 / $550 |
|
New-Account Amount, see 12 CFR 229.13(a)(1)(ii) |
$5,525 |
$6,725 |
|
Large-Deposit Threshold, see 12 CFR 229.13(b) |
$5,525 |
$6,725 |
|
Repeatedly Overdrawn Threshold, see 12 CFR 229.13(d)(2) |
$5,525 |
$6,725 |
|
Civil Liability Minimum and Maximum for Individual Action, see 12 CFR 229.21(a)(2)(i) | $125 / $1,100 | $125 / $1,350 |
|
Civil Liability Maximum for Class Action, see 12 CFR 229.21(a)(2)(ii)(B) |
$552,000 |
$672,950 |
Generally certain types of deposited funds must be made available for withdrawal on the next business day (after a banking day) at a staffed teller facility. These types of deposits include electronic payments, certain government checks, cashier checks, teller’s checks, certified checks, and “on-us” checks, and of course, cash.
Looking ahead to next year, credit unions must update their related policies, procedures, and availability schedules to reflect these changes and that they are in place for the Tuesday, July 1, 2025, effective date. As a reminder, NCUA has enforcement authority for Reg CC violations for both federal credit unions and federally insured, state-chartered credit unions.
Resources:
Final Rule: Availability of Funds and Collection of Checks (Federal Register, May 20, 2024)
Expedited Funds Availability Act/Regulation CC (NCUA Federal Consumer Financial Protection Guide)
12 CFR Part 229 (Part 229—Availability of Funds and Collection of Checks (Regulation CC))