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Currently our bank does not accept deposits through ATMs. We are going to start accepting deposits at an ATM we are going to purchase and place at a new branch.
I see that we need to update the Reg E new account disclosure to include this as a type of transaction, but I do not think we would need to provide a change of terms notice for Reg E, is that the case?
I see that we need to provide a disclosure at the ATM or on the screen prior to the deposit acceptance regarding availability. If the ATM cutoff time is earlier than our standard cut off time of close of business, would we need to revise the Funds Availability Policy and new account disclosure to state that deposits made at this particular ATM after a certain time are considered made on the next business day? We have additional ATMs at our branches, but none will be accepting deposits at this time.
I think you would need to include this cutoff time in your Reg CC/funds availability policy disclosure. Comment 229.16(b)-6 states:
The business day cut-off time used by the bank must be disclosed and if some locations have different cut-off times the bank must note this in the disclosure and state the earliest time that might apply. A bank need not list all of the different cut-off times that might apply. If a bank does not have a cut-off time prior to its closing time, the bank need not disclose a cut-off time.Regulation E says a change in terms is required 21 days in advance for the following at noted below. The 21 day advance notice would not apply outside of this list.
(a) Change in terms notice. (1) Prior notice required. A financial institution shall mail or deliver a written notice to the consumer, at least 21 days before the effective date, of any change in a term or condition required to be disclosed under § 1005.7(b) of this part if the change would result in:
(i) Increased fees for the consumer;
(ii) Increased liability for the consumer;
(iii) Fewer types of available electronic fund transfers; or
(iv) Stricter limitations on the frequency or dollar amount of transfers.
Unless there is something in your Reg E disclosure about ATMs that would become inaccurate due to this ATM accepting deposits, I can’t see where a change in terms would be required under Reg E. However, you can provide information via a periodic statement that would satisfy Reg CC (required 30 days in advance unless the change expedites funds availability) and E (if needed) with little effort.
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