Upcoming Regulation CC Changes – July 2025
Effective July 1, 2025
The Consumer Financial Protection Bureau (CFPB) and the Federal Reserve Board have implemented cost of living adjustments relating to the availability of customer funds under Regulation CC. Fortunately, unlike the NFL salary cap that is reviewed annually, Regulation CC is only reviewed for adjustments every 5 years.
Key Changes:
- Next-Day Availability: Increase from $225 to $275
- Second Business Day Availability: Increase from $5,300 to $6,450
- Total Availability by Second Business Day: Increase from $5,525 to $6,725 (unless an exception hold is applied)
Financial institutions need to be prepared for these quickly upcoming changes and should ensure the following items are updated:
- Policies
- Procedures
- Risk assessments
- Funds availability disclosures
- Terms and conditions
- Hold forms or system generated hold forms
- Technology systems
- Training materials
- Posted notices that reference availability amounts.
All transaction account holders, both consumer and business, must receive the necessary change notices within 30 days following the effective date, as these changes are beneficial to customers.
Lastly, don’t forget to conduct staff training to ensure everyone is aware of these new limits … because not only did the availability limits increase, but the civil liability amounts for Regulation CC violations also increased (insert dramatic music here)!
For more information:
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20240513a.htm
Neovera SV (formerly 10-D Security) is an independent firm specializing in IT security and compliance for financial institutions. We help clients mitigate risk and comply with GLBA requirements, offering tailored services and expertise to strengthen cybersecurity programs.