Do we violate regulation if we charge for cash advances?
There’s not a specific Federal regulatory prohibition that would be related to that--there isn't one in Regulation Z. Visa and MasterCard, however, have their own set of rules that banks must comply with if the bank has an agreement with either of those brands.
Another common question related to VISA and MasterCard rules is about accepting credit card payments for loan payments – again, Visa and MasterCard rules would be the deciding factor and not federal regulation.
Finally, related to debit card fraud and liability limits. That’s also an area where these private entities can and do have rules that are stricter and beyond the scope of Regulation E. Thus, it’s important to be aware of what rules the bank is bound by via an agreement and usage of those cards. For information on Visa and MasterCard rules and policies, you can visit their respective websites.
I have a check written to John Smith and Jane Doe, but only John is a customer at the bank. Can we accept the check and deposit it into John’s account?
Yes, you can, BUT there is some potential risk here. To take the check, you would have to be sure that it was properly indorsed by both John and Jane. The problem here is that Jane is not your customer, so you would have some extra due diligence in making sure that she indorsed it over to John and allowed John to deposit the check at your bank. The risk here is that if the check is not properly indorsed – if Jane’s signature was forged – then the bank could be liable to the paying bank or the real Jane. Before taking this type of check, be sure to review your bank policies on taking third party or non-customer checks.
Remember the paying bank has 24 hrs. to return the check once it is received for payment. Also, forged indorsement claims can be made by the customer from the paying bank up to 30 days after the statement cycle.
When setting up a customer for electronic delivery of disclosures, can we provide the E-Sign consent along with all the relevant disclosures.
No, the E-sign consent must happen before you provide any subsequent disclosures. For example, suppose you want to send the Loan Estimate electronically to an applicant. The first thing you need to do is provide all of the E-sign disclosures, obtain demonstrable electronic consent, and only after then can you send the Loan Estimate electronically. E-sign disclosures and consent need to be first, and separate from all other disclosures.
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