Final Rule

On June 24, 2019, the Bureau of Consumer Financial Protection (the Bureau) and the Federal Reserve Board (the Board) jointly announced a final rule amending Regulation CC. The Bureau and the Board have joint rulemaking authority for certain provisions of Regulation CC, including over the funds-availability rules.

The Final Rule is limited to implementing changes based on the 2018 proposal, which includes the five (5) year period COLA adjustments required by the Dodd-Frank Act as well as certain amendments made by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

The non-EGRRCPA changes, including the adjustments below, go into effect July 1, 2020. Thus, the second round of COLA changes are scheduled to be effective July 1, 2025, and every five (5) years thereafter.

The current adjustment impacts several dollar amounts incorporated into Subpart B of the Regulation including:

  • The $200 rule (formerly the $100 rule) under Sec.229.10(c) – changing to $225;
  • The $400 cash-withdrawal rule under Sec. 229.12(d) – changing to $450;
  • The $5,000 new account threshold under Sec. 229.13(a) – changing to $5,525;
  • The $5,000 large deposit threshold under Sec. 229.13(b) – changing to $5,525; and
  • The $5,000 threshold for determining a repeat overdraft under Sec. 229.13(d)(2) – changing to $5,525.

The EGRRCPA amendments made to Regulation CC include extending coverage of the Expedited Funds Availability Act, which is implemented by Regulation CC, to American Samoa, the Commonwealth of the Northern Mariana Islands, and Guam. These changes are effective September 3, 2019.