why did my bank notify me by mail that the funds in my checking account will be periodically reclassfied ?

Question

due to federal regulation D

Answer 1

What this means is they are changing their account structures and your account will be affected by the change. They are required under Reg D to notify you by mail that they are making such changes.

Some banks never change their account structures others change frequently (the bank I work at changes account structuring every year).

What I mean by account structuring...Lets say that you have an account that you can write unlimited checks on right now but the bank is changing your account (and every other customer who is in the same type of account) to an account where you can only write 50 checks per month and then you get a $1 fee for every check you write...the bank must notify you of this change a minimum of 30 days before the change takes place.

Answer 2

They changed the terms of your account due to the new federal regulation and are required to inform you for that change to take effect.

I don't understand how your funds are classified in a checking account. In a money market account or other accounts the minimum balance could have changed. You are going to have to go to the bank with that piece of mail and ask them what it means to you and your accounts. It could be a minor change that doesn't mean anything or it could totally change the condition of your checking account; it depends on the type of account. As part of the legal notice they have to explain the changes to you and what it means to your account.

Answer 3

Their regulations require them to notify you at least 30 days in advance before making any changes to your bank account. If you have any questions you really should ask your bank instead of people here who don't know your situation.

Answer 4

I looked up regulation D on the internet. I really don't find any reference to "classification of funds" relating to personal accounts. Also, it seems to me, that this regulation applies mostly to credit unions. Best to do as suggested by the others here and check with your bank. Ask them to explain, don't go away until you fully understand.

Answer 5

does not sound like something a back would do, take the letter to your bank and see if it's legit or call them (not the number on the letter if there is one, look up you local bank # & you might need to fax or email over the letter.