The FDIC, Federal Reserve, CFPB, OCC and NCUA are issuing guidance to ensure that financial institutions are aware of the agencies’ supervisory expectations regarding deposit-reconciliation practices that may be detrimental to customers. The agencies expect financial institutions to adopt deposit-reconciliation policies and practices that are designed to avoid or reconcile discrepancies, or to resolve discrepancies such that customers are not disadvantaged.
Various laws and regulations may be relevant to deposit-reconciliation practices. Among them, the Expedited Funds Availability Act (EFAA) requires that financial institutions make funds deposited in a transaction account available for withdrawal within prescribed time limits. Policies or practices that do not appropriately reconcile credit discrepancies within the prescribed time frames and leave customers without timely access to the correct amount of funds may raise concern. Failure to comply with requirements in the EFAA may subject the financial institution to civil liability and possible action by the appropriate Agency.
In addition, a financial institution's deposit-reconciliation practices are subject to the Federal Trade Commission Act, which prohibits a financial institution from engaging in unfair or deceptive acts or practices. The letter applies to all FDIC-supervised financial institutions.