Do National Banks have to comply with Reg-E?

Yes.

With this exception, §205.3 Coverage.
(7) Small institutions. Any preauthorized transfer to or from an account if the assets of the account-holding financial institution were $100 million or less on the preceding December 31. If assets of the account-holding institution subsequently exceed $100 million, the institution's exemption for preauthorized transfers terminates one year from the end of the calendar year in which the assets exceed $100 million. Preauthorized transfers exempt under this paragraph (c)(7) remain subject to §205.10(e) regarding compulsory use and sections 915 and 916 of the act regarding civil and criminal liability.

Thanks Andy, I didn't realize that about small banks...

Just be very careful not to stretch that small-institution exemption too far!

It only exempts preauthorized transfers to or from accounts. That gets the small bank off the hook for recurring credits and recurring debits, and that's all. So things like social security benefits or payroll direct deposit credits will be exempt from coverage for these banks, as will recurring debits like monthly EFT debits for insurance premiums, health club memberships, etc.

But if a customer instructs the IRS to direct deposit his refund, that's not a preauthorized EFT under the definition in the regulation, so it will be subject to Reg. E. As will all debit card and ATM card activity, on-line banking transfers, and most bill payment transactions.

Actually John, we aren't considered a small, that's probably why I never paid attention to it before. But heck, you never know, I could be at a small bank someday!

It could be a good place to be, Maria! Happy New Year!

There are many good places to be. The trick is not only finding yours, but realizing it. But I digress. I should have emphasized what John pointed out.

I'm with you Maria. I've never been in a small bank that could take advantage of that, nor have I ever been in a non-HMDA bank. I always skipped those things that didn't apply or I knew I'd never get out of.

Thanks for the reply.
It seems for the most part,national banks have to comply
with Reg E.The question now is,What can the consumer do about a bank that will NOT comply?

If you believe that a bank has failed to comply with Regulation E (or any other consumer regulation), you should draft a careful letter explaining your position. Include details about what specifically you believe was handled incorrectly. You should first direct the letter of complaint to management of the bank. Aim high here. Call the bank or look at their Web site to determine the name and mailing address of their President, and use it.

While the President of the bank won't be equipped in most cases to resolve the problem him- or herself, he or she will usually want to be certain that the bank has not violated any rules.

If you obtain no satisfaction from the bank's management, and still believe you've been wronged, contact the OCC's Customer Assistance Group. Here's a LINK to their customer assistance Web page, where you'll find mailing and e-mail addresses, and additional information. The OCC is the regulator for national banks.