[Code of Federal Regulations]

[Title 12, Volume 3]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR229.57]



[Page 573]

 

                       TITLE 12--BANKS AND BANKING

 

                   CHAPTER II--FEDERAL RESERVE SYSTEM

 

PART 229_AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS (REGULATION CC)

--Table of Contents

 

                       Subpart D_Substitute Checks

 

Sec. 229.57  Consumer awareness.



    (a) General disclosure requirement and content. Each bank shall 

provide, in accordance with paragraph (b) of this section, a brief 

disclosure to each of its consumer customers that describes--

    (1) That a substitute check is the legal equivalent of an original 

check; and

    (2) The consumer recredit rights that apply when a consumer in good 

faith believes that a substitute check was not properly charged to his 

or her account.

    (b) Distribution--(1) Disclosure to consumers who receive paid 

checks with periodic account statements. A bank shall provide the 

disclosure described in paragraph (a) of this section to a consumer 

customer who receives paid original checks or paid substitute checks 

with his or her periodic account statement--

    (i) No later than the first regularly scheduled communication with 

the consumer after October 28, 2004, for each consumer who is a customer 

of the bank on that date; and

    (ii) At the time the customer relationship is initiated, for each 

customer relationship established after October 28, 2004.

    (2) Disclosure to consumers who receive substitute checks on an 

occasional basis--(i) The bank shall provide the disclosure described in 

paragraph (a) of this section to a consumer customer of the bank who 

requests an original check or a copy of a check and receives a 

substitute check. If feasible, the bank shall provide this disclosure at 

the time of the consumer's request; otherwise, the bank shall provide 

this disclosure no later than the time at which the bank provides a 

substitute check in response to the consumer's request.

    (ii) The bank shall provide the disclosure described in paragraph 

(a) of this section to a consumer customer of the bank who receives a 

returned substitute check, at the time the bank provides such substitute 

check.

    (3) Multiple account holders. A bank need not give separate 

disclosures to each customer on a jointly held account.