VI. Deposits — EFA
FDIC Consumer Compliance Examination Manual — March 2024 VI–1.15
A bank, at its discretion, may require the consumer to
submit the claim in writing. If a consumer makes an oral
claim to a bank that requires a written claim, the bank
must inform the consumer of the written requirement at
that time. Under those circumstances, the bank must
receive the written claim by the later of 10 business days
from the date of an oral claim or the expiration of the
consumer’s initial 40-day period for submitting a timely
claim. As long as the original oral claim fell within the
40-day requirement for notification and a complete
written claim was received within the additional 10-day
window, the claim meets the timing requirements
(sections 229.54(b)(1) and 229.54(b)(3)), even if the
written claim was received after the exp iration of the
initial 40-day period.
Bank’s Action on Claims
Section 229.54(c) requires a bank to act on a consumer’s
claim no later than the tenth business day after the banking
day on which it received the consumer’s claim:
•
If the bank determines that the consumer’s claim is
valid, it must recredit the consumer’s account no later
than the end of the business day after the banking day
on which it makes that determination. The amount of
the recredit should equal the amount of the
consumer’s loss, up to the amount of the substitute
check, plus interest on that amount if the account is
an interest-bearing account. The bank must then
notify the consumer of the recredit using the notice
discussed below (‘‘Notices Relating to Expedited
Recredit Claims’’).
•
If the bank determines that the consumer’s claim is
invalid, it must notify the consumer of that decision
using the notice discussed below (‘‘Notices Relating
to Exp edited Recredit Claims’’).
•
If the bank has not determined the validity of the
consumer’s claim by the tenth business day after the
banking day on which it received the claim, the bank
must recredit the consumer’s account for the amount
of the consumer’s loss, up to the amount of the
substitute check or $2,500, whichever is less. The
bank must also recredit interest on that amount if the
consumer’s account is an interest-bearing account.
The bank must send a notice to that effect to the
consumer using the notice discussed below
(‘‘Notices Relating to Expedited Recredit Claims’’).
If the consumer’s loss was more than $2,500, the
bank has until the end of the forty-fifth calendar day
from the date of the claim to recredit any remaining
amount of the consumer’s loss, up to the amount of
the substitute check (plus interest), unless it
determines prior to that time that the claim was
invalid and notifies the consumer of that decision.
Section 229.54(d) generally requires that recredited funds
receive next-day availability . However, a bank that
provisionally recredits funds pending further investigation
may invoke safeguard exceptions to delay availability of the
recredit under the limited circumstances described in section
229.54(d)(2). The safeguard exceptions apply to new accounts
and repeatedly overdrawn accounts and also when the bank
has reasonable cause to suspect that the claim is fraudulent. A
bank may delay availability of a provisionally recredited
amount until the start of the earlier of (1) the business day
after the banking day on which the bank determines that the
consumer’s claim is valid or (2) the forty-fifth calendar day
after the banking day on which the bank received the claim if
the account is new, the account is overdrawn, or the bank has
reasonable cause to believe that the claim is fraudulent. When
the bank delays availability under this section, it may not
impose overdraft fees on checks drawn against the
provisionally credited funds until the fifth calendar day after
the day on which the bank sent the notice regarding the
delayed availability .
If, after providing the recredit, the bank determines that the
consumer’s claim was invalid, the bank may reverse the
recredit. This reversal must be accompanied by a consumer
notification using the notice discussed below (‘‘Notices
Relating to Expedited Recredit Claims’’).
Notices Relating to Expedited Recredit Claims
Section 229.54(e) outlines the requirements for providing
consumer notices related to exp edited recredit:
•
The bank must send the notice of recredit no later
than the business day after the banking day on
which the bank recredits the consumer’s account.
The notice must include the amount of the recredit
and the date the recredited funds will be available
for withdrawal.
•
The bank must send notice that the consumer’s
claim is not valid no later than the business day
after the banking day on which the bank makes this
determination. The notice must include the original
check or a sufficient copy of it (except as provided
in section 229.58; see below). Also, it must
demonstrate to the consumer why the claim is not
valid. Further, the notice must include either any
information or document that the bank used in
making its determination or an indication that the
consumer may request copies of this information.
•
The bank must send the notice of a reversal of
recredit no later than the business day after the
banking day on which the bank made the reversal.
The notice must include all the information required
in a notice of invalid claim plus the amount
(including interest) and date of the reversal (section
229.54(e)(3)(i)).