Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
For our transactional and savings accounts, we automatically correct deposit errors only if they exceed $1. We don’t disclose that anywhere in the account documentation. Should we be disclosing the $1 threshold somewhere? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

For our transactional and savings accounts, we automatically correct deposit errors only if they exceed $1. We don’t disclose that anywhere in the account documentation. Should we be disclosing the $1 threshold somewhere?

—

by

Yes, we recommend disclosing that your institution does not investigate or correct deposit errors below the $1 threshold.

As you noted, the CFPB recently found that a bank’s policy of leaving deposit errors uncorrected if under a $25 threshold (sometimes as high as $50) was unfair and deceptive. While the CFPB focused on a large dollar amount that was “under-credited” under this policy (over $12 million), it also focused on the fact that the bank’s deposit agreement stated that “all deposits to your accounts, regardless of how made, are subject to verification,” and the bank had failed to disclose that it would not verify and correct deposit discrepancies under its thresholds.

 For resources related to our guidance, please see:

  • CFPB Consent Order, RBS Citizens Financial Group, Inc. (August 12, 2015) (“26. Respondents did not disclose the practice relating to Deposit Discrepancies. Instead, the Banks’ Personal Deposit Account Agreement stated, in relevant part, ‘All deposits to your accounts, regardless of how made, are subject to verification . . . . We reserve the right to make adjustments to your account, in our sole discretion, for computation or other errors to your account.’”)
  • CFPB Consent Order, RBS Citizens Financial Group, Inc. (August 12, 2015) (“29. . . . Respondents failed to disclose or disclose adequately that the Banks’ practice for resolving Deposit Discrepancies resulted in consumers receiving less than full credit for their deposits. Respondents’ failure to disclose this fact, in light of the representation made, constitutes a deceptive act or practice.”)