Changes made recently to parts of Regulation CC, which implements the Expedited Funds Availability Act (EFAA), are highlighted for credit unions in a new Consumer Financial Protection Update issued Monday by the National Credit Union Administration (NCUA).
The Reg CC changes, announced last month by the Consumer Financial Protection Bureau (CFPB) and the Federal Reserve Board, were required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and last year’s 2018 Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA, S. 2155).
The Dodd-Frank Act requires the CFPB to make adjustments for inflation every five years to Reg CC’s dollar amounts for minimum funds available for withdrawal following deposit, the threshold for withdrawal exceptions, amount of applicable civil penalties, and others. These changes take effect July 1, 2020.
Section 208 of EGRRCPA extended some EFAA coverage to American Samoa, the Commonwealth of the Northern Mariana Islands, and Guam. “Credit unions in those jurisdictions must follow the EFAA provisions governing funds availability, payment of interest, and disclosures, as those jurisdictions are now considered ‘states’ for some EFAA purposes,” the NCUA CFP Update (19-12) states. These changes take effect Sept. 3.