1005.15: Electronic fund transfer of government benefits. Document page views are updated periodically throughout the day and are cumulative counts for this document. In addition, if a consumer attempts to engage in a transaction with a gift certificate, store gift card, or general-use prepaid card, but the transaction cannot be completed due to technical or other reasons, such attempt does not constitute activity. Preauthorized transfers exempt under this paragraph (c)(7) remain subject to 1005.10(e) regarding compulsory use and sections 916 and 917 of the Act regarding civil and criminal liability. If the debit item is resubmitted, the institution must continue to honor the stop-payment order". A consumer initiates a transfer by a means analogous in function to a telephone, such as by home banking equipment or a facsimile machine. 3. No liability imposed by financial institution. If the consumer makes multiple transfers at the same time, the financial institution may document them on a single or on separate receipts. 1. (c) Exceptions to the periodic statement requirement for certain accounts. No financial institution or other person may require a consumer to establish an account for receipt of electronic fund transfers with a particular institution as a condition of employment or receipt of a government benefit. (v) Pay bills directly [by telephone] from your [checking] [or] [savings] account in the amounts and on the days you request. A financial institution must implement a consumer's revocation of consent as soon as reasonably practicable. 1. The failure by a financial institution to provide a terminal receipt for an electronic fund transfer or to document the transfer on a periodic statement does not violate this part if: (1) The transfer is not initiated within a state; and. The definition of overdraft service does not include the payment of transactions in a securities or commodities account pursuant to which credit is extended by a broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission. Street address. The type of ATM or debit card provided to the consumer. (ii) Redeemable upon presentation at a single merchant or an affiliated group of merchants for goods or services. Navigate by entering citations or phrases 4. Marketed or labeled as a gift card or gift certificate. The information-collection requirements have been approved by the Office of Management and Budget under 44 U.S.C. (d) Imposition of fee. Because no more than one dormancy, inactivity, or service fee may be imposed in any given calendar month, the earliest date that another dormancy, inactivity, or service fee may be imposed, assuming there continues to be no activity on the certificate or card, is February 1 of year two. Official interpretation of 10 (b) Written Authorization for Preauthorized Transfers From Consumer's Account Show Rather, the interim final rule makes only non-substantive, technical changes to the existing text of the regulation, such as renumbering, changing internal cross-references, replacing appropriate nomenclature to reflect the transfer of authority to the Bureau, and changing the address for filing applications and notices. 3. corresponding official PDF file on govinfo.gov. Applicability to covered separate credit features accessible by hybrid prepaid-credit cards. For example, if a program manager purchases store gift cards directly from an issuing merchant and sells those cards through the program manager's retail outlets, such gift cards are subject to the requirements of 1005.20 because the store gift cards are sold to consumers primarily for personal, family, or household purposes. If you have questions for the Agency that issued the current document please contact the agency directly. B. to the courts under 44 U.S.C. (b) Alternative Notice About Electronic Check Conversion (Optional). 6. If it does so, the financial institution may rely on the transaction's coding by merchants, other institutions, and other third parties as a one-time or a preauthorized or recurring debit card transaction. For example, it may print the telephone number in the passbook, or include the number with the annual error resolution notice. (3) Crediting. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)[1] Any business that accepts electronic funds transfers (EFTs) are legally required to follow this rule. An account held under a custodial agreement that qualifies as a trust under the Internal Revenue Code, such as an individual retirement account, is considered to be held under a trust agreement for purposes of Regulation E. 1. Similarly, disclosures on the back of a card that are printed on top of indentations from embossed type on the front of the card are not likely to be conspicuous if the indentations obstruct the readability of the disclosures. Regulation Z (12 CFR part 1026) rules apply if there is another type of credit feature; for example, one permitting direct extensions of credit that do not involve the asset account. For example, social security benefits under the U.S. Treasury's direct-deposit program are covered, even if the listing of payees and payment amounts reaches the account-holding institution by means of a computer printout from a correspondent bank. The exemption applies to a transfer involving a transfer initiated by a telephone order to a stockbroker to buy or sell securities or to exercise a margin call. It covers any account located in the United States through which EFTs are offered to a resident of a state. Interchange system fees. One-year period. The disclosures in paragraph (h)(2) of this section: (i) Are not required to be provided on or after January 31, 2011, with respect to in-store signage and general advertising. The exclusion in 1005.20(b)(5) does not apply because the bar code or card or certificate number was issued to the consumer in electronic form, even though it can be reproduced or otherwise printed on paper by the consumer. D. Representing that a card or certificate can be used as a budgetary tool, for example, by teenagers, or to cover emergency expenses. A card, code, or other device is reloadable if the terms and conditions of the agreement permit funds to be added to the card, code, or other device after the initial purchase or issuance. See comment 20(a)(7)-1. iii. 2. The provisions of this section limit the circumstances under which a financial institution may issue an access device to a consumer. (d) Transfer types and limitations (1005.7(b)(4)) (1) Account access. Forced initiation. No EFT agreement. 1. Electronic access. 1. Section 1005.20(e)(4) does not require the replacement of a certificate or card that has been lost or stolen. 1. user convenience only and is not intended to alter agency intent 1. (8) Liability of institution. 4. The permit will allow the vehicle owner 30 days to operate the vehicle in order to obtain the vehicle's safety and/or emissions certificates. Certain employment-related cards not covered. A retail repurchase agreement (repo), which is a loan made to a financial institution by a consumer that is collateralized by government or government-insured securities. (iv) Provides the consumer with confirmation of the consumer's consent in writing, or if the consumer agrees, electronically, which includes a statement informing the consumer of the right to revoke such consent. For example, an institution limits cash ATM withdrawals to $100 per day. (4) Passbook account where the only possible electronic fund transfers are preauthorized credits. 13. (6) Permitted modifications and additional content. The person that obtains the authorization shall provide a copy to the consumer. will bring you to those results. The institution may confirm that the consumer has informed the payee-originator of the revocation (for example, by requiring a copy of the consumer's revocation as written confirmation to be provided within 14 days of an oral notification). (2) Telephone number and address. The authorization requirement does not apply to any fees assessed by the consumer's account-holding financial institution when it returns the unpaid underlying EFT or check or pays the amount of an overdraft. However, if the person collecting the fee elects to send the consumer notice after the person has initiated an EFT to collect the fee, that notice must state the amount of the fee to be collected. (3) Relationship between paragraphs (c)(1) and (2) of this section. For example, the notice might state We also offer overdraft protection plans, such as a link to a savings account or to an overdraft line of credit, which may be less expensive than our standard overdraft practices. If the institution offers one, but not the other, it must state in its opt-in notice the alternative plan that it offers. Microsoft Edge, Google Chrome, Mozilla Firefox, or Safari. (3) The term does not include an account held by a financial institution under a bona fide trust agreement. (ii) Error resolution. [2] Telephone number. (b) Notice of error from consumer. (We will charge you [insert amount] for each stop-payment order you give. 7. (2) Exception. The financial institution may require the consumer to give written confirmation of a stop-payment order within 14 days of an oral notification. Stop Payments | Bankers Online 1. Correction of an error. The notice must also state the dollar amount of the fee. Explains the requirements to authorize a preauthorized electronic fund transfer from a consumer's account. If the consumer notifies the financial institution within two business days of learning of the loss or theft (by midnight Friday), the consumer's liability is limited to $50 or the amount of the unauthorized transfers that occurred before notification, whichever is less. (2) Notice by payor. Statement held for consumer. 2. 2. If an overdraft results, the service provider shall promptly reimburse the account-holding institution in the amount of the overdraft. A financial institution complies with its duty to investigate, correct, and report its determination regarding an error described in 1005.11(a)(1)(vii) by transmitting the requested information, clarification, or documentation within the time limits set forth in 1005.11(c). In addition, recodifying the Board's regulation to reflect the transfer of authority to the Bureau will help facilitate compliance with the EFTA and its implementing regulation, and the new regulation will help reduce uncertainty regarding the applicable regulatory framework. An institution is not required to disclose fees for inquiries made at an ATM since no transfer of funds is involved. Applicability. The interim final rule will have no unique impact on depository institutions or credit unions with $10 billion or less in assets as described in section 1026(a) of the Dodd-Frank Act. See, however, 1005.20(f)(2). Exempt securities- and commodities-related lines of credit. (vii) The consumer's request for documentation required by 1005.9 or 1005.10(a) or for additional information or clarification concerning an electronic fund transfer, including a request the consumer makes to determine whether an error exists under paragraphs (a)(1)(i) through (vi) of this section. No person may sell or issue a gift certificate, store gift card, or general-use prepaid card with an expiration date, unless: (1) The person has established policies and procedures to provide consumers with a reasonable opportunity to purchase a certificate or card with at least five years remaining until the certificate or card expiration date; (2) The expiration date for the underlying funds is at least the later of: (i) Five years after the date the gift certificate was initially issued, or the date on which funds were last loaded to a store gift card or general-use prepaid card; or. A financial institution shall provide the following disclosures, as applicable: (1) Liability of consumer. Comments or questions about document content can not be answered by OFR staff. 3. (a) General. Reg E - Stop Pays on Preauthorized Transfers 06/16/2008 Can you provide an interpretation of Reg E Section 205.10? The CFPB Issues Warning and Guidance on Obtaining Consumer - Troutman The Legal Consequences of Violating Regulation E If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. ii. A number or code that identifies the consumer's account or accounts, or the access device used to initiate the transfer. The institution's report of the results of its investigation shall include a written explanation of the institution's findings and shall note the consumer's right to request the documents that the institution relied on in making its determination.
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