In this case, the card may qualify for the exclusion for loyalty, award, or promotional gift cards under 205.20(b)(3), or for the exclusion for cards, codes, or other devices not marketed to the general public under 205.20(b)(4). A request for an official staff interpretation shall be in writing and addressed to the Director, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Documentation required under the regulation constitutes prima facie proof of a payment to another person, except in the case of a terminal receipt documenting a deposit. The institution shall report the results to the consumer within three business days after completing its investigation. Our customers that receive e-statements have consented to receive the statement electronically and we send them an e-mail advising them the statement is available. The transactions will appear only on the statement issued by your bank or other financial institution. For example, the institution could provide a form that can be accessed and processed at its Web site, where the consumer may click on a check box to provide consent and confirm that choice by clicking on a button that affirms the consumer's consent. 1. However, nothing in 205.12(b) provides a financial institution with immunity for violations of state law if the institution chooses not to make state disclosures and the Board later determines that the state law is not preempted. formatting. 2. The financial institution's business days. Correction notice. 3. 4, 2001; 71 FR 1661, Jan. 10, 2006; 71 FR 69437, Dec. 1, 2006; 71 FR 1482, Jan. 10, 2006, 71 FR 51450, Aug. 30, 2006; 72 FR 36593, July 5, 2007; 72 FR 63456, Nov. 9, 2007; 74 FR 59055, Nov. 17, 2009; 75 FR 31671, June 4, 2010; 75 FR 16615, Apr. If the institution does not offer either plan, it should omit the reference to the alternative plans. See, e.g., 205.20(b)(3). For errors involving new accounts, point-of-sale, or foreign-initiated transactions, we may take up to 90 days to investigate your complaint or question. 9. Division of Market Regulation, Securities and Exchange Commission, Washington, D.C. 20549. Correction of an error. (c) Addition of electronic fund transfer services. The prohibition on conditioning in 205.17(b)(2) does not require an institution to pay overdrafts on checks, ACH transactions, or other types of transactions in all circumstances. A business day includes the entire 24-hour period ending at midnight, and a notice required by the regulation is effective even if given outside normal business hours. Disclosure of funds expirationdate not required. 1601 et seq.) Addition of electronic check conversion services. 1. The telephone number need not be incorporated into the text of the disclosure; for example, the institution may instead insert a reference to a telephone number that is readily available to the consumer, such as Call your branch office. PART 205ELECTRONIC FUND TRANSFERS (REGULATION E). Other notices required under this paragraph (b)(2) (for example, to collect a service fee for insufficient or uncollected funds via an EFT) provided to the consumer listed on the billing account also constitutes notice to any other consumer who may provide a check for the billing cycle or invoice. See 205.17(d)(6), which permits institutions to include the revocation statement on the initial opt-in notice. A summary of the financial institution's liability to the consumer under section 910 of the act for failure to make or to stop certain transfers. Stop-payment order. (iv) Reports the results to the consumer within three business days after completing its investigation (including, if applicable, notice that a provisional credit has been made final). A deposit made at an ATM or other electronic terminal (including a deposit in cash or by check) provided a specific agreement exists between the financial institution and the consumer for EFTs to or from the account to which the deposit is made. 4. Sweepstakes or contests that distribute cards redeemable for or towards goods or services or other monetary value to consumers as an invitation to enter into the promotion for a chance to win a prize. 205.16 Disclosures at automated teller machines. ii. To take advantage of the longer time periods for resolving errors under 205.11(c)(3) (for new accounts as defined in Regulation CC (12 CFR part 229), transfers initiated outside the United States, or transfers resulting from POS debit-card transactions), a financial institution must have disclosed these longer time periods. E, 61 FR 19669, May 2, 1996, as amended at 66 FR 13412, Mar. Duration. For example, assume a movie theatre chain and a restaurant chain jointly agree to issue cards that share the same Flix and Food logo that can be redeemed solely towards the purchase of movie tickets or concessions at any of the participating movie theatres, or towards the purchase of food or beverages at any of the participating restaurants. A financial institution that uses a passbook as the primary means for displaying account activity, but also allows the account to be debited electronically, may provide a periodic statement requirement that reflects only the EFTs and other required disclosures (such as charges, account balances, and address and telephone number for inquiries). If, however, an account may be accessed by any EFT other than preauthorized credits to the account, such as preauthorized debits or ATM transactions, the account does not qualify for the exception. This contact form is only for website help or website suggestions. (b) Purpose. Moreover, the fact that a card, code, or other device may be primarily funded by a business, for example, in the case of certain rewards or incentive cards, does not mean the card, code, or other device is outside the scope of 205.20, if the card, code, or other device will be provided to a consumer primarily for personal, family, or household purposes. (6) There may be other exceptions stated in our agreement with you. Change between annual and periodic notice. (2) Electronic check conversion. Reg E Change in Terms Notice | American Bankers Association Phone number for passbook accounts. Daily or Sustained Overdraft, Negative Balance, or Similar Fee or Charge. The error resolution notice must be substantially similar to the model form in appendix A of part 205. Specifically, an institution may disclose to payroll card account holders that the institution will investigate any notice of error provided within 60 days of the consumer electronically accessing an account or receiving a written history upon request that reflects the error, even if, for some or all transactions, the institution investigates any notice of error provided up to 120 days from the date that the transaction alleged to be in error has posted to the consumer's account. A financial institution may, for example, terminate the overdraft service when the consumer makes excessive use of the service. You are using an unsupported browser. Preauthorized electronic fund transfers from a consumer's account may be authorized only by a writing signed or similarly authenticated by the consumer. 6. Examples of accounts not covered by Regulation E (12 CFR part 205) include: i. Profit-sharing and pension accounts established under a trust agreement, which are exempt under 205.2(b)(2). This web site is designed for the current versions of The terms gift certificate, store gift card, and general-use prepaid card, as defined in paragraph (a) of this section, do not include any card, code, or other device that is: (1) Useable solely for telephone services; (2) Reloadable and not marketed or labeled as a gift card or gift certificate. Thus, the institution may charge a $20 sustained overdraft fee on March 8. iii. For purposes of this part, the following definitions apply: (1) Access device means a card, code, or other means of access to a consumer's account, or any combination thereof, that may be used by the consumer to initiate electronic fund transfers. For example, the consumer's card is stolen on Monday and the consumer learns of the theft that same day. Any transfer of funds that guarantees payment or authorizes acceptance of a check, draft, or similar paper instrument but that does not directly result in a debit or credit to a consumer's account. Extended time-period for certain transactions. 1. The following, however, do not by themselves constitute a written plan or agreement: i. (j) ATM fees ( 205.7(b)(11)). Paragraph 17(b)(2)Conditioning Payment of Other Overdrafts on Consumer's Affirmative Consent. Paragraph 3(c)(6)Telephone-Initiated Transfers. When a financial institution fails to provide the consumer with a periodic statement, a request for a copy is governed by this section if the consumer gives notice within 60 days from the date on which the statement should have been transmitted. In any case you will get the statement at least quarterly). Posted transactions. At the institution's option, the summary of the consumer's liability may include advice on promptly reporting unauthorized transfers or the loss or theft of the access device. All disclosures required by this section must be clear and conspicuous. Navigate by entering citations or phrases If you have any questions about one of these transactions, call or write us at [telephone number and address] [the telephone number and address indicated below]. An account that is accessed by preauthorized transfers to the account described in paragraph (c)(1) of this section and by intra-institutional transfers described in paragraph (c)(2) of this section, but by no other type of electronic fund transfers, qualifies for the exceptions provided by paragraph (c)(1) of this section . All the terminals owned or operated by the financial institution providing the statement (or by the system in which it participates) are located in that state, or. An institution need not reflect on the periodic statement the street addresses, identification codes, or terminal numbers for transfers initiated in a shared or interchange system at a terminal operated by an institution other than the account-holding institution. iv. Examples of nonexempt transfers. 1693 Rules & Regulations Regulation II (12 C.F.R. When a consumer has arranged for periodic statements to be held until picked up, the statement for a particular cycle is deemed to have been transmitted on the date the financial institution first makes the statement available to the consumer. Form of notice. A preauthorized check drawn by the financial institution on the consumer's account (such as an interest or other recurring payment to the consumer or another party), even if the check is computer-generated. Positive notice. An institution is not required to determine whether a consumer has in fact accessed information about specific transactions to trigger the beginning of the 60-day periods for liability limits and error resolution under 205.6 and 205.11. Certain employment-related cards not covered. Changes in Tenancy Agreements in California: Landlord Limitations 3. The absence of a deposit entry (on a periodic statement sent within two business days of the scheduled transfer date) will serve as negative notice. Early compliance. 3. (See, however, 205.20(a)(4)(iii), requiring certain disclosures for loyalty, award, or promotional gift cards.). Relationship between 205.20(d)(2), (e)(3), and (f)(2). Fees paid by the account-holding institution to the operator of a shared or interchange ATM system need not be disclosed, unless they are imposed on the consumer by the account-holding institution. See comment 20(a)(3)2. Sales promotions operated or administered by a merchant or product manufacturer that provide coupons or discounts redeemable for or towards goods or services or other monetary value. The institution may also disclose the consumer's right to revoke consent. Recurring payments by government agency. A financial institution that provides information under paragraph (b) of this section, shall comply with the following: (1) Initial disclosures. 1/1.1 4. If the debit item is resubmitted, the institution must continue to honor the stop-payment order (for example, by suspending all subsequent payments to the payee-originator until the consumer notifies the institution that payments should resume). Under 205.20(d)(3), no more than one dormancy, inactivity, or service fee may be imposed in any given calendar month. In contrast, a card, code, or other device generally would not be issued to consumers primarily for personal, family, or household purposes, and therefore would fall outside the scope of 205.20, if the purchaser of the card, code, or device is contractually prohibited from reselling or redistributing the card, code, or device to consumers primarily for personal, family, or household purposes, and reasonable policies and procedures are maintained to avoid such sale or distribution for such purposes. Identification of an account is not required when the consumer can access only one asset account at a particular time or terminal, even if the access device can normally be used to access more than one account. When you provide a check as payment, you authorize us to use information from your check to make a one-time electronic fund transfer from your account. (4) Limitations on dollar amounts of transfers. A financial institution may require the consumer to give written confirmation of an error within 10 business days of an oral notice. 2. The service provider need not furnish the periodic statement required by 205.9(b) if the following conditions are met: (i) The debit card (or other access device) issued to the consumer bears the service provider's name and an address or telephone number for making inquiries or giving notice of error; (ii) The consumer receives a notice concerning use of the debit card that is substantially similar to the notice contained in appendix A of this part; (iii) The consumer receives, on or with the receipts required by 205.9(a), the address and telephone number to be used for an inquiry, to give notice of an error, or to report the loss or theft of the debit card; (iv) The service provider transmits to the account-holding institution the information specified in 205.9(b)(1), in the format prescribed by the automated clearinghouse system used to clear the fund transfers; (v) The service provider extends the time period for notice of loss or theft of a debit card, set forth in 205.6(b) (1) and (2), from two business days to four business days after the consumer learns of the loss or theft; and extends the time periods for reporting unauthorized transfers or errors, set forth in 205.6(b)(3) and 205.11(b)(1)(i), from 60 days to 90 days following the transmittal of a periodic statement by the account-holding institution. Electronic disclosures. (ii) The consumer may notify the institution in person, by telephone, or in writing. 3. Section 205.9(a)(1) applies to any type of electronic terminal as defined in Regulation E (for example, to POS terminals as well as to ATMs), while 205.16 applies only to ATMs. Negative notice. If no physical certificate or card is issued, the disclosures must be provided to the consumer before the certificate or card is purchased. However, 205.20(e)(1) still prohibits the sale or issuance of such certificate or card unless there are policies and procedures in place to provide a consumer with a reasonable opportunity to purchase the certificate or card with at least five years remaining until the certificate or card expiration date. The institution must respond within two business days to any inquiry not answered immediately. The term payroll card account does not include a card used solely to disburse incentive-based payments (other than commissions which can represent the primary means through which a consumer is paid), such as bonuses, which are unlikely to be a consumer's primary source of salary or other compensation. Financial institutions that provide electronic fund transfer services jointly may contract among themselves to comply with the requirements that this part imposes on any or all of them. Similarly, no agreement between the consumer and an institution may impose greater liability on the consumer for an unauthorized transfer than the limits provided in Regulation E. 1. Consumer liability for unauthorized use of an account. If you work for a Federal agency, use this drafting will also bring you to search results. Section 205.20(d) provides that a person may impose a dormancy, inactivity, or service fee only if there has been no activity with respect to a certificate or card for one year. The writing and signature requirements of this section are satisfied by complying with the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. The designated payee or the institution shall inform the consumer of the right to receive notice of all varying transfers, but may give the consumer the option of receiving notice only when a transfer falls outside a specified range of amounts or only when a transfer differs from the most recent transfer by more than an agreed-upon amount. For example, the term includes franchisees that are subject to a common set of corporate policies or practices under the terms of their franchise licenses. (See, however, comment 20(b)(2)4.ii.). (However, refer to comment 2(m)2 regarding termination of the authority of given by the consumer to another person.). A consumer may affirmatively consent to the financial institution's overdraft service at any time in the manner described in the notice required by paragraph (b)(1)(i) of this section. The Board accounts for the paperwork burden associated with the CFPB's Regulation E . Interchange system fees. If the amount of the fee is determined on the basis of the number of times the consumer has overdrawn the account, the amount of the overdraft, or other factors, the institution must disclose the maximum fee that may be imposed. Activity. Section 205.20(e)(1) applies solely to the purchase of a certificate or card. Expiration of temporary exemption. On March 3, the institution pays a check transaction of $100 and charges an overdraft fee of $20. For access devices that also constitute credit cards, the issuance rules of Regulation E apply if the only credit feature is a preexisting credit line attached to the asset account to cover overdrafts (or to maintain a specified minimum balance) or an overdraft service, as defined in 205.17(a). 1. If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Within its primary service area, an institution must provide a local or toll-free telephone number. A financial institution shall mail or deliver a written notice to the consumer, at least 21 days before the effective date, of any change in a term or condition required to be disclosed under Sec. 1. 1, 2010, as amended at 75 FR 50687, Aug. 17, 2010; 75 FR 66648, Oct. 29, 2010], A1Model Clauses for unsolicited issuance ( 205.5(b)(2)), A2Model clauses for initial disclosures ( 205.7(b)), A3Model forms for error resolution notice ( 205.7(b)(10) and 205.8(b)), A4Model form for service-providing institutions ( 205.14(b)(1)(ii)), A5Model forms for government agencies ( 205.15(d)(1) and (2)), A9 Model Consent Form for Overdraft Services ( 205.17), A1Model Clauses For Unsolicited Issuance ( 205.5(b)(2)). (iii) Sets forth the following disclosures, as applicable: (A) A statement indicating that the card, code, or other device is issued for loyalty, award, or promotional purposes, which must be included on the front of the card, code, or other device; (B) The expiration date for the underlying funds, which must be included on the front of the card, code, or other device; (C) The amount of any fees that may be imposed in connection with the card, code, or other device, and the conditions under which they may be imposed, which must be provided on or with the card, code, or other device; and. A financial institution that receives a preauthorized transfer of the type described in paragraph (a)(1) of this section shall credit the amount of the transfer as of the date the funds for the transfer are received. (We will charge you [insert amount] for each stop-payment order you give. [Reg. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. For example, a Regulation E statement must be provided quarterly for an account that also receives payroll deposits electronically, or for any month in which an account is also accessed by a withdrawal at an ATM. Alternative procedure for debiting of credited funds. (iii) Between a consumer's account and an account of the financial institution, except that these transfers remain subject to 205.10(e) regarding compulsory use and sections 915 and 916 of the act regarding civil and criminal liability. 1. (d) Notice of transfers varying in amount . Electronic or mechanical confirmation (such as a PIN). Even when the consumer is unable to provide the account number or the card number in reporting a lost or stolen access device or an unauthorized transfer, the notice effectively limits the consumer's liability if the consumer otherwise identifies sufficiently the account in question. If we decide to do this, we will credit your account within 10 business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. ii. 2. Section 205.17(b) applies to ATM and one-time debit card transactions made with a debit card issued by or on behalf of the account-holding institution. Paragraph 9(b)(1)Transaction Information. This exemption is limited to preauthorized transfers; institutions that offer other EFTs must comply with the applicable sections of the regulation as to such services. 2. 1. If a member of the general public may become a member of the program or a customer of the bank, the card does not fall within the exclusion in 205.20(b)(4) because the general public has the ability to obtain the cards. An accounting or business date may be disclosed in addition if the dates are clearly distinguished. 7(c) Addition of Electronic Fund Transfer Services, 1. Same facts as i., and a fee was imposed on January 15 of year two. (i) The financial institution shall comply with the requirements of 205.11 in response to an oral or written notice of an error from the consumer that is received by the earlier of, (A) Sixty days after the date the consumer electronically accesses the consumer's account under paragraph (b)(1)(ii) of this section, provided that the electronic history made available to the consumer reflects the alleged error; or. 1. Disclosures may contain commonly accepted or readily understandable abbreviations or symbols, such as mo. for month or a / to indicate per. Under the clear and conspicuous standard, it is sufficient to state, for example, that a particular fee is charged $2.50/mo. Except as provided in paragraph (b) of this section, a financial institution may issue an access device to a consumer only: (1) In response to an oral or written request for the device; or. The term also applies to two or more merchants or other persons that agree among themselves, by contract or otherwise, to redeem cards, codes, or other devices bearing the same name, mark, or logo (other than the mark, logo, or brand of a payment network), for the purchase of goods or services solely at such merchants or persons. No specific language is required for notice regarding receipt of a preauthorized transfer. (iii) A written history of the consumer's account transactions that is provided promptly in response to an oral or written request and that covers at least 60 days preceding the date the financial institution receives the consumer's request. However, to the extent an employer or a service provider undertakes either of these functions, it would be deemed a financial institution under the regulation. The account-holding institution has no liability for the failure to comply with this requirement if the service provider did not provide the necessary information; and. Paragraph 7(b)(2)Telephone Number and Address. If a consumer's access device is also a credit card and the device is used to make unauthorized withdrawals from a checking account, but also is used to obtain unauthorized cash advances directly from a line of credit that is separate from the checking account, both Regulation E and Regulation Z apply. Opening and closing balances. 2. The institution may not wait for the payee-originator to terminate the automatic debits. Periodic statements limited to EFT activity. Third-party identity on deposits at electronic terminal. Paragraph 20(a)(4)Loyalty, Award, or Promotional Gift Card, 1. The account-holding financial institution does not violate the regulation when a third-party payee fails to obtain the authorization in writing or fails to give a copy to the consumer; rather, it is the third-party payee that is in violation of the regulation. Representing that a card or certificate can be used as a substitute for a checking, savings, or deposit account; B. We must allow you to report an error until 60 days after the earlier of the date you electronically access your account, if the error could be viewed in your electronic history, or the date we sent the FIRST written history on which the error appeared. In a shared system, for example, when a credit union member initiates transfers to or from a share draft account at a terminal owned or operated by a bank, the receipt may identify a withdrawal from the account as a withdrawal from checking.. In addition to the requirements generally applicable under this part, the service provider shall comply with the following special rules: (1) Disclosures and documentation. (b) Preemption of inconsistent state laws . Omission of third-party name. A financial institution may use commonly accepted or readily understandable abbreviations in complying with the disclosure requirements of this part. When a consumer alleges an error involving a transfer to a merchant via a POS terminal, the institution must verify the information previously transmitted when executing the transfer. A. Section 205.20 applies, for example, to an account number or bar code that can be used to access underlying funds. (a) Coverage. 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. At the end of that day, the consumer has an account balance of negative $130. 1. Information obtained from others. You may use your [card][code] to: (i) Withdraw cash from your [checking] [or] [savings] account. An excluded card, code, or other device generally is not subject to any of the requirements of this section. Only disclosures provided under paragraphs (c)(3) and (h)(2) of this section may be given orally. Disclosures are clear and conspicuous for the purposes of this section if they are in a print that contrasts with and is otherwise not obstructed by the background on which they are printed. (iii) Delayed compliance date for fee disclosure. Forced initiation. Applicability to replacement certificates or cards. Issued for loyalty, award, or promotional purposes. The consumer can then make purchases of songs, media, or virtual goods from the merchant using that account either at the time the value is transferred from the certificate or card or at a later time. The receipt provision is also preempted because it allows the consumer to be charged for receiving a receipt if a machine cannot furnish one at the time of a transfer. 7001 et seq.). For example, if a mall card may only be redeemed at merchants within the mall itself, the card is more likely to be redeemable at an affiliated group of merchants and considered a store gift card.
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