CUs begin using new rules ‘for mobile deposit only’

Credit union expert suggest four things to do right now to implement these changes.

New Federal Reserve Board rules that took effect July 1 now have many credit unions scrutinizing what’s written on the back of checks they deposit, and credit unions that aren’t doing so could face more indemnity claims, according to one compliance expert.

The new rules are part of the Federal Reserve Board’s Regulation CC, which governs things such as check collection and funds availability, and they reflect the country’s growing digitization of check collection processes.

Currently, financial institutions typically indemnify each other in certain circumstances when members deposit checks. For example, according to the Fed, if a person deposited a check via remote deposit capture (RDC) at Financial Institution A, then cashed the original paper check at Financial Institution B and disappeared with the money before Financial Institution B realized the check was already deposited at Financial Institution A, Financial Institution B could make an indemnity claim against Financial Institution A for its loss.

 

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