Regulation CC Threshold Adjustments
By Scott Birrenkott
Every five years, the agencies amend Regulation CC to adjust for inflation dollar amounts relating to availability of funds. In May of 2024, FRB and CFPB issued a final rule amending Regulation CC with new adjustments. The effective date for the threshold adjustments is July 1, 2025. However, banks are permitted to implement those changes sooner if so desired.
To summarize the inflation adjustments:
• The first $225 becomes $275.
• Reg CC requires the first $100 of a deposit made by check be made available on the next business day. This “first $100” rule was adjusted to $200 in 2011, to $225 in 2020, and becomes $275 in 2025.
• The $450 for non-next day items becomes $550.
• Reg CC provides that cash withdrawals from local and non-local checks need not be available for cash withdrawal until 5:00 p.m. on the day specified in the schedule, but at least $450 of the deposit must be made available for cash withdrawal before 5:00 p.m. This amount becomes $550.
• Note that this $550 is in addition to the $275 available pursuant to the requirements above.
• The $5,525 of the “large deposit” exception hold, “new account” amount, and the repeatedly overdrawn threshold becomes $6,725.
• Reg CC permits an exception hold on large deposits in excess of $5,525 which becomes $6,725.
• Reg CC permits funds to be held for new accounts in excess of $5,525, which becomes $6,725.
• Reg CC permits when an account is repeatedly overdrawn for funds to be held in excess of $5,525 which becomes $6,725.
• As of July 1, 2025, the amounts for civil liability in an individual action shall not be greater than $1,350 and $672,950 for class action.
Change in terms notification to customers will be required as well. Reg CC requires notice to customers at least 30 days before implementing a change to the bank’s availability policy regarding such accounts, except that a change that expedites the availability of funds may be disclosed not later than 30 days after implementation. Because the threshold adjustments mean that more funds are available to the customer sooner, the change will expedite availability. Thus, customers must be notified of
Birrenkott is the WBA director – legal
