On July 1, 2025, several thresholds under the Expedited Funds Availability Act (Regulation CC) will be adjusted once again for inflation. They include the following:
- Increase from $225 to $275 the amount of certain check deposits that must be made available on the next business day following the date of deposit.
- Increase the new account exception hold threshold from $5,525 to $6,725. Beginning July 1st, a credit union may delay the availability of funds in excess of $6,725 deposited to a new account in any one banking day.
- Increase the large deposit exception hold threshold from $5,525 to $6,725. Beginning July 1st, a credit union may delay the availability of funds in excess of $6,725 deposited to an existing account in any one banking day
Change the definition of repeated overdrafts. Beginning July 1st, an account will be considered repeatedly overdrawn if –- On 6 or more banking days within the preceding 6 months, the account balance was negative or would have become negative had checks or other charges to the account been paid, or
- On 2 or more banking days within the preceding 6 months, the account balance was negative or would have become negative in an amount of $6,725 or more.
As a reminder, the Dodd-Frank Act amended the Expedited Funds Availability Act by requiring adjustments for inflation every five years. The first round of adjustments tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) occurred on July 1, 2020.
While credit unions are required to provide notice of this change under Regulation CC, since the increased thresholds will result in expedited availability of funds to the member, advance notification is not required. Notice may be provided up to 30 days following the effective date of the change, in this case, not later than July 31, 2025. Notice may be given in any form, so long as it is clear and conspicuous. If the credit union opts to send each member a new funds availability disclosure, it must highlight the adjusted amounts in the revied disclosure.
Learn More on InfoSight360, A League Member Benefit
Additional information about the Expedited Funds Availability Act and Regulation CC may be found in InfoSight 360, a Tennessee League member benefit. The Funds Availability Chart, located under Additional Resources, has been updated to reflect the increased thresholds effective July 1.
