When Regulation CC was updated back in 2019, one of the changes attached the dollar amounts to be made available to adjust every five years based on changes to the Consumer Price Index (CPI-W) similar to annual changes in Regulations M and Z, rounded to the nearest $25.
Well, that far-off five-year timeframe has arrived. Due to the 21.8% increase in the CPI-W from July 2018 – July 2023, effective on July 1, 2025, the amounts for availability are changing as shown below. The amounts include:
- The minimum amount of deposited funds that banks must make available for withdrawal by opening of business on the next day for certain check deposits (“Minimum Amount,” currently $225), is increasing to $275.
- The amount a bank must make available when using the permissive adjustment to the funds-availability rules for withdrawals by cash or other means after 5:00 p.m. (“Cash Withdrawal Amount,” currently $450), is increasing to $550.
- The amount of funds deposited by certain checks in a new account that are subject to next-day availability (“New-Account Amount,” currently $5,525), is increasing to $6,725.
- The threshold for using an exception to the funds-availability schedules if the aggregate amount of checks for any one banking day exceeds the threshold amount (“Large-Deposit Threshold,” currently $5,525), is increasing to $6,725.
- The threshold for determining whether an account has been repeatedly overdrawn (“Repeatedly Overdrawn Threshold,” currently $5,525) is increasing to $6,725; and
- The Civil Liability Amounts Minimum and Maximum for an Individual Action for failing to comply with the EFA Act’s requirements (currently “not less than $100 nor greater than $1,100” for an individual action and “not more than $552,500 or 1 percent of the net worth”) is increasing the amounts to $125, $1,350, and $672,950).
One item which is required by statute and was unable to be amended by regulation was the requirement to provide a change in terms notice under 229.18(e) to accountholders at least 30 days before implementing a change to the bank’s availability policy, except that a change that expedites the availability of funds may be disclosed not later than 30 days after implementation.
- Before the increases take effect, be sure to update your new account disclosures for the new limits for the first five bullet points above.
- And before (or within 30 days after), be sure to disclose the new limits for the first five bullet points above to your existing customers.
So, we have some time to plan and implement these changes. If you need assistance in implementing these or any compliance changes, please contact TCA at [email protected] or (800) 934-7347 as TCA is A Better Way to move towards compliance.
TCA – A Better Way!
