CUNA calls for re-proposed funds availability proposal from CFPB, Fed
CUNA submitted a letter in response to a joint proposal issued by the Federal Reserve and Consumer Financial Protection Bureau that would make amendments to Regulation CC (which implements the Expedited Funds Availability (EFA) Act) Friday.
The proposal, which establishes a threshold adjustment methodology and implements changes to the EFA Act made by the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155), also sought to solicit additional comments on a 2011 funds availability proposal.
Regarding the 2011 proposal, CUNA recommended the agencies “update their research and reissue an amended Funds Availability Proposal that reflects changes in technology, consumer trends, and the greater availability of mobile deposits rather than tying a dated proposal to a tangentially related recent development.”
In addition, CUNA reiterated several points it made in in its original 2011 comment on the proposal, including:
- Highlighting an objection to the proposed decrease in the reasonable additional extension hold;
- Encouraging the agencies to continue to work with credit unions and other institutions to obtain data on check fraud to account for changes in counterfeit technology and the payment landscape;
- Recommending the agencies provide appropriate data security guidance for the proposed electronic return requirements that is consistent with other data security regulations, which include electronic data and systems to be used by financial institutions;
- Recommending agencies provide further clarification, examples and commentary on the “reasonable cause to doubt collectability” hold reason to account for suspected fraud and counterfeit checks; and
- Recommending the agencies attempt to reduce compliance costs and burdens by minimizing changes to the model forms and disclosures.