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CANS Conference Call Summary

Presented by IBAT in cooperation with the Texas Department of Banking
Tuesday, April 1, 2008
8:30 a.m. CST

General Information

During the 80th Regular Session of the Texas Legislature, Representative Helen Giddings sponsored HB 2002, creating an electronic notification system that requires your bank, upon proper request by a customer, to alert check verification entities that the customer has closed an account because of actual fraud or compromised financial information.  To implement this program, every bank, savings bank, and credit union maintaining an office, branch, or agency office in this state must register with the Department of Banking, which is administering the system.  HB 2002 makes no distinction between state and federally chartered financial institutions.  The Department has dubbed the system “CANS” (Closed Account Notification System) and had it operating on schedule on March 1, 2008.  Your bank should have enrolled with the Department prior to March 1.  There is no fee to register and no penalty for registering late.

IBAT Participants

Shannon Phillips - Deputy General Counsel
Steve Scurlock - Executive Vice President

Texas Department of Banking Participants

Bob Bacon - Deputy Commissioner
Wendy Rodriguez - Director of Strategic Support
Everette Jobe - Senior Counsel

Summary of call:

  • Brief legislative history of House Bill 2002
    • Bill sponsored by Helen Giddings
    • Creates the Closed Account Notification System
  • Review of laws and rules
    • CANS process begins when a customer suffers a violation of Penal Code §32.51
    • Business and Commerce Code §35.595 sets out CANS system and permits the Finance Commission to adopt rules
    • Finance Commission adopted Chapter 35 of Texas Administrative Code
    • Brief discussion of rule
  • The purpose of CANS and how to enroll to use CANS
  • Question and Answer session

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