Question:

Hi Heather. Some questions. Do the upcoming dollar threshold changes to funds availability schedules under Regulation CC require the credit union to provide a change in terms notice to affected members? And if so, is there model change in terms language?

Answer:

What is Changing?

Let’s start out by explaining what is changing. Regulation CC (12 CFR part 229) implements the Expedited Funds Availability (EFA) Act. Certain dollar amounts outlined in the EFA Act are adjusted every five years based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W), as published by the Bureau of Labor Statistics.

This chart shows current Reg CC dollar thresholds and the new thresholds effective on July 1, 2025:

Is a change in terms to members required?

Yes. Section 12 CFR § 229.18(e) states the following:

Changes in policy. A bank shall send a notice to holders of consumer accounts at least 30 days before implementing a change to the bank’s availability policy regarding such accounts, except that a change that expedites the availability of funds may be disclosed not later than 30 days after implementation.

Although the time required frames within which funds must be made available is not changing, the dollar amounts required to be made available are. Even though this a positive change for members, a change in terms notice is still required. However, it can be provided up to 30 days after implementation of the change since members will have access to a larger amount of funds sooner.

*And don’t forget – the change in terms notice only needs to be provided to consumer accounts even though Reg CC applies to both business and consumer accounts.

 Are there requirements for the change in terms notice?

According to the Commentary in Appendix E or Regulation CC, “a notice may be given in any form as long as it is clear and conspicuous.”

However, if the credit union gives notice of a change by sending members a completely new availability disclosure, the credit union must direct members to the changed terms in the disclosure by use of a letter or insert, or by highlighting the changed terms in the disclosure.

Is there any model language for the change in terms notice?

The regulators did not provide model language for the change in terms notice. However, I have provided some sample language below. Be sure to have your own compliance and legal counsel review and approve any change in terms language before you provide it members.

Effective [DATE] the following changes were made to our Expedited Funds Availability Act Policy:

• • When we place a hold on a check you deposit, the amount we may make available [immediately/the next business day] is increasing to $275.
  • We are increasing the amount you can withdraw in cash to $550, if we otherwise delay cash withdrawals after certain check deposits.
  • We may place an extended hold on checks deposited on any one day totaling more than $6,725 (up from $5,525).
  • If you are a new customer, Funds from deposits of cash, wire transfers, and the first $6,725 (up from $5,525) of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions.