Or does each applicant just initial that section in their own application? A: Having each applicant initial the appropriate place on their own application is fine. To satisfy Regulation B, each applicant must sign or initial somewhere to indicate they intend to apply jointly with the other applicant(s), not necessarily in every such space on all applications for a particular loan. EFAA. Q: Per Regulation CC, we find that our deposit-taking ATM must disclose specifically the availability periods for all types of deposit accounts. Our question is: Is the funds availability notice that is required in our lobby, where deposits are accepted, the same notice required on the ATM? Also, how many signs for the cut-off time does a bank need? Are they needed at every teller window? A: The bank does not have to post a full funds availability schedule at each ATM. ATMs require a notice at each location that funds deposited in the ATM may not be available for immediate withdrawal. This is a pretty simple notice that may either be posted on a sign on the ATM (though these tend to get picked at/removed over time) or on the screen before a consumer makes a deposit. As for notices of cut-off times, that would be part of the posted availability schedule. The bank has some flexibility in meeting this requirement. The notice must be posted in a conspicuous place in each location where its employees receive deposits to consumer accounts. The required notice must specifically state the availability periods for the various deposits that may be made to consumer accounts. The notice need not be posted at each teller window, but the notice must be posted in a place where consumers seeking to make deposits are likely to see it before making their deposits (e.g., at the point where the line forms for teller service in the lobby). EFTA. Q: To what extent is a bank responsible for fraud on debit cards? When a card is compromised, and the customer had no involvement in the transaction, we reimburse. However, what if the customer was responsible for the transaction, but unknowingly used a fraudulent website? Is the bank responsible for reimbursing them? In our case, the customer “purchased” a cruise through a fraudulent website. Is this considered coercion by the fraudster and thus covered by Regulation E? A: No, not receiving whatever they “purchased” is not an “error” under Regulation E error resolution requirements (though it is for credit cards under Regulation Z). The transaction was “authorized,” so the bank has no reimbursement obligation. FDIC Advertising. Q: In regard to the recent FDIC Official Signs and Advertisement Rule update, are all institutions now required to have written policies and procedures in place to be in compliance? A: Yes, the bank is required to have a policy dealing with the advertisement of FDIC membership requirements. The relevant subsection in the revised rule is 12 CFR 328.8(a) (Policies and procedures). Privacy. Q: I wanted to confirm our understanding of the annual privacy notice requirements under Regulation P. Last year, the bank updated its privacy policy and mailed the revised notice to applicable customers. Since that time, there have been no additional changes to the policy or our information-sharing practices. Based on our review, we believe we continue to meet the criteria for the annual privacy notice exception and, therefore, are not required to send a new notice at this time. Correct? A: Yes. If the bank shares customer information only under the exceptions in sections 1016.13, 1016.14, and/or 1016.15 and has not changed its privacy policy since last year’s mailing, it still falls within the exception. As you did last year, if another change is made, another set of notices will have to be sent out at that time — and then back to the exception (as long as the exception’s criteria are still met). Young & Associates provides banks and thrifts with support for their compliance programs, independent reviews and inbank training, as well as a full menu of management consulting, loan review, IT consulting and policy systems. Community Banker 17
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