FRB and CFPB Adopt Amendments to Adjust Funds Availability for Inflation

The Federal Reserve Board and the CFPB adopted amendments to Regulation CC, implementing a requirement for certain dollar amounts and thresholds to be inflation-adjusted periodically. The amendments impact how much in funds depository institutions must make available to their customers in certain situations (ranging from the timeliness of the availability of certain deposits to the threshold amount for determining whether accounts have been repeatedly overdrawn).

Regulation CC implements the Expedited Funds Availability Act of 1987 ("EFA Act"). The Dodd-Frank Wall Street Reform and Consumer Protection Act amended the EFA Act to provide that certain dollar amounts be inflation-adjusted every five years by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers.

With the exception of a few amendments, the final rule will become effective on July 1, 2020. Certain other amendments will go into effect 60 days following their publication in the Federal Register.

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