Reg E Updates for ATM/Debit Card NSF fees and Overdraft Privilege (ODP) NSF Fees

Earlier this month those credit unions that are licensed for Overdraft Privilege received an e-mail with a PDF document attached that discussed our plans for the various member Opt-In and Opt-Out requirements for ODP fees.

We are posting that document here with changes that discuss changes that include most credit unions. All substantive changes are noted with [3/31/2010] before the change, with our plans for handling the initial canvassing of your members for ODP and ATM/Debit Card NSF fee opt-outs.

Click here to access the document.

Please note that we are still receiving conflicting directions concerning the exact circumstances that require Reg E Opt-In/Opt-Out member elections.

We will keep you updated as we continue to finalize changes to CAMS-ii to accommodate the Reg E changes. We will have them completed in sufficient time to meet the deadlines.

Please address any further questions concerning this posting to the CBS Issue Tracking System.

Reg CC Changes – No More Out-of-Town Checks

The following is an excerpt from an Advanced Fraud Solutions (AFS) e-mail. AFS is a company used by some of our customers to assist in fraudulent and counterfeit check detection. Their message serves as a reminder that a check deposit/cashing change is upon us.

“The final consolidation of paper check processing regions is scheduled for February 26, 2010. After that occurs, there will be only two paper check processing regions for the United States.

While our eyes are focused on these changes, the counterfeiters are as well. The absence of ‘non-local’ holds present opportunities for checks to be available much faster than before. Financial institutions with delayed funds check-cashing policies can no longer delay the availability of a non-local check for five days. The longest ‘standard’ delay that can be used will be the two-day availability period which is currently allowed for local checks.”

So, what does this mean for CAMS-ii customers?

1. As the second paragraph from the AFS e-mail states, you may need new disclosures, lobby signage changes, updated procedures for account opening, and teller training concerning the changes.

2. If you use the CAMS-ii TELLSCAN product, you should remove the out-of-town check type from Check Type Code Maintenance (Back Office >Standard>Parameters > Check Type Code Maint).

3. Schedule with CBS Support via CBS Issue Tracking to change the existing checking account database entries--Those entries which 'remember' how you coded the check when it was scanned (In-Town, Out-Of-Town, Payroll, Government, etc.)--from the out-of-town setting to the in-town setting.

Please address any questions regarding this announcement to the CBS Issue Tracking System.