Regulation CC first became law back in 1992. Yes, that was when Sir Mix-a-Lot was “back” on the top of the charts, audiences were eating up Silence of the Lambs, and bowl cuts were a thing. Times have changed, but oddly Reg CC hasn’t. Since 1992, Reg CC—which governs funds availability and how financial institutions handle check collection and return processes—has stayed mostly the same. But think about how much banking has evolved over the last quarter century, especially in light of the widespread use of electronic items, checks, and processing systems.
You might be surprised to learn that a large chunk of Reg CC still applies only to paper checks. Thankfully, the law is getting a modern makeover to acknowledge the fact that today’s check collection world is now virtually entirely electronic. In June 2017, the Federal Reserve issued final amendments to Reg CC to get with the times, and the CFPB is expected to do the same shortly. These amendments will take effect on July 1, 2018, and they aim to recognize current collection practices.
Here are the highlights of a few of the Federal Reserve’s amendments to Reg CC: Continue Reading