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6500 - Consumer Protection
{{10-31-07 p.7361}}
PART 205ELECTRONIC FUND TRANSFERS (REGULATION E)
Sec. 205.1
Authority and purpose.
205.2
Definitions.
205.3
Coverage.
205.4
General disclosure requirements; jointly offered services.
205.5
Issuance of access devices.
205.6
Liability of consumer for unauthorized transfers.
205.7
Initial disclosures.
205.8
Change in terms notice; error resolution notice.
205.9
Receipts at electronic terminals; periodic statements.
205.10
Preauthorized transfers.
205.11
Procedures for resolving errors.
205.12
Relation to other laws.
205.13
Administrative enforcement; record retention.
205.14
Electronic fund transfer service provider not holding consumer's
account.
205.15
Electronic fund transfer of government benefits.
205.16
Disclosures at automated teller machines.
205.17
Requirements for electronic communication.
205.18
Requirements for financial institutions offering payroll card accounts.
Appendix A to Part
205Model Disclosure Clauses and Forms
Appendix B to Part
205Federal Enforcement Agencies
Appendix C to Part
205Issuance of Staff Interpretations
Supplement 1 to Part
205Official Staff Interpretations
AUTHORITY: 15 U.S.C. 1693b.
SOURCE: The provisions of this Part 205 appear at 61 Fed. Reg.
19669, May 2, 1996 except as otherwise noted.
§ 205.1 Authority and purpose.
(a) Authority. The regulation in ths part, known as
Regulation E, is issued by the Board of Governors of the Federal
Reserve System pursuant to the Electronic Fund Transfer Act (15 U.S.C.
1693 et seq.). The information-collection requirements have
been approved by the Office of Management and Budget under 44 U.S.C.
3501 et seq. and have been assigned OMB No. 7100--0200.
(b) Purpose. This part carries out the purposes of the
Electronic Fund Transfer Act, which establishes the basic rights,
liabilities, and responsibilities of consumers who use electronic fund
transfer services and of financial institutions that offer these
services. The primary objective of the act and this part is the
protection of individual consumers engaging in electronic fund
transfers.
[Codified to 12 C.F.R. § 205.1]
[Section 204.1 amended at 49 Fed. Reg. 40797, October 18, 1984,
effective October 16, 1984; 61 Fed. Reg. 19669, May 2,
1996]
§ 205.2 Definitions.
For purposes of this part, the following definitions apply:
(a)(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.
(2) An access device becomes an accepted access device
when the consumer:
(i) Requests and receives, or signs, or uses (or authorizes
another to use) the access device to transfer money between accounts or
to obtain money, property, or services;
(ii) Requests validation of an access device issued on an
unsolicited basis; or
(iii) Receives an access device in renewal of, or in substitution
for, an accepted access device from either the financial institution
that initially issued the device or a successor.
{{10-31-07 p.7362}}
(b)(1) Account means a demand deposit (checking),
savings, or other consumer asset account (other than an occasional or
incidental credit balance in a credit plan) held directly or indirectly
by a financial institution and established primarily for personal,
family, or household purposes.
(2) The term includes a "payroll card account" which is an
account that is directly or indirectly established through an employer
and to which electronic fund transfers of the consumer's wages,
salary, or other employee compensation (such as commissions), are made
on a recurring basis, whether the account is operated or managed by the
employer, a third-party payroll processor, a depository institution or
any other person. For rules governing payroll card accounts, see
§ 205.18.
(3) The term does not include an account held by a financial
institution under a bona fide trust agreement.
(c) Act means the Electronic Fund Transfer Act (title IX
of the Consumer Credit Protection Act, 15 U.S.C. 1693 et
seq.).
(d) Business day means any day on which the offices of
the consumer's financial institution are open to the public for
carrying on substantially all business functions.
(e) Consumer means a natural person.
(f) Credit means the right granted by a financial
institution to a consumer to defer payment of debt, incur debt and
defer its payment, or purchase property or services and defer payment
therefor.
(g) Electronic fund transfer is defined in § 205.3.
(h) Electronic terminal means an electronic device,
other than a telephone operated by a consumer, through which a consumer
may initiate an electronic fund transfer. The term includes, but is not
limited to, point-of-sale terminals, automated teller machines, and
cash dispensing machines.
(i) Financial institution means a bank, savings
association, credit union, or any other person that directly or
indirectly holds an account belonging to a consumer, or that issues an
access device and agrees with a consumer to provide electronic fund
transfer services.
(j) Person means a natural person or an organization,
including a corporation, government agency, estate, trust, partnership,
proprietorship, cooperative, or association.
(k) Preauthorized electronic fund transfer means an
electronic fund transfer authorized in advance to recur at
substantially regular intervals.
(l) State means any state,
territory, or possession of the United States; the District of
Columbia; the Commonwealth of Puerto Rico; or any political subdivision
of the above in this paragraph (l).
(m) Unauthorized electronic fund transfer means an
electronic fund transfer from a consumer's account initiated by a
person other than the consumer without actual authority to initiate the
transfer and from which the consumer receives no benefit. The term does
not include an electronic fund transfer initiated:
(1) By a person who was furnished the access device to the
consumer's account by the consumer, unless the consumer has notified
the financial institution that transfers by that person are no longer
authorized;
(2) With fraudulent intent by the consumer or any person acting
in concert with the consumer; or
(3) By the financial institution or its employee.
[Codified to 12 C.F.R. § 205.2]
[Section 205.2 amended at 44 Fed. Reg. 59470, October 15,
1979; 45 Fed. Reg. 8263, February 6, 1980, effective May 10, 1980; 49
Fed. Reg. 40798, October 18, 1984, effective (1) on November 16, 1984,
for purposes of the limitations on consumer liability for unauthorized
transfers (§ 205.6) resulting from debit card transactions not
involving electronic terminals at the time of the transaction, and of
the restrictions on the unsolicited issuance of debit cards (§ 205.5)
for transactions not involving electronic terminals; and (2) on April
16, 1985, for purposes of all other requirements of the regulation that
are
{{10-31-07 p.7363}}applicable to transfers
resulting from debit card transactions that do not involve electronic
terminals at the time of the transaction; 61 Fed. Reg. 19669, May 2,
1996; amended at 71 Fed. Reg. 1481, January 10, 2006, effective July 1,
2007; 71 Fed. Reg. 51449, August 30, 2006, effective July 1,
2007]
§ 205.3 Coverage.
(a) General. This part applies to any electronic fund
transfer that authorizes a financial institution to debit or credit a
consumer's account. Generally, this part applies to financial
institutions. For purposes of §§ 205.3(b)(2), and (b)(3), 205.10(b),
(d), and (e) and 205.13, this part applies to any person.
(b) Electronic fund transfer--(1) Definition.
The term electronic fund transfer means any transfer of funds that is
initiated through an electronic terminal, telephone, computer, or
magnetic tape for the purpose of ordering, instructing, or authorizing
a financial institution to debit or credit a consumer's account. The
term includes, but is not limited to--
(i) Point-of-sale transfers;
(ii) Automated teller machine transfers;
(iii) Direct deposits or withdrawals of funds;
(iv) Transfers initiated by telephone; and
(v) Transfers resulting from debit card transactions, whether or
not initiated through an electronic terminal.
(2) Electronic fund transfer using information from a
check. (i) This part applies where a check, draft, or similar
paper instrument is used as a source of information to initiate a
one-time electronic fund transfer from a consumer's account. The
consumer must authorize the transfer.
(ii) The person initiating an electronic fund transfer using the
consumer's check as a source of information for the transfer must
provide a notice that the transaction will or may be processed as an
electronic fund transfer, and obtain a consumer's authorization for
each transfer. A consumer authorizes a one-time electronic fund
transfer (in providing a check to a merchant or other payee for the
MICR encoding, that is, the routing number of the financial
institution, the consumer's account number and the serial number) when
the consumer receives notice and goes forward with the underlying
transaction. For point-of-sale transfers, the notice must be posted in
a prominent and conspicuous location, and a copy thereof, or a
substantially similar notice, must be provided to the consumer at the
time of the transaction.
(iii) The person that initiates an electronic fund transfer using
the consumer's check as a source of information for the transfer shall
also provide a notice to the consumer at the same time it provides the
notice required under paragraph (b)(2)(ii) that when a check is used to
initiate an electronic fund transfer, funds may be debited from the
consumer's account as soon as the same day payment is received, and,
as applicable, that the consumer's check will not be returned by the
financial institution holding the consumer's account. For
point-of-sale transfers, the person initiating the transfer may post
the notice required in this paragraph (b)(2)(iii) in a prominent and
conspicuous location and need not include this notice on the copy of
the notice given to the consumer under paragraph (b)(2)(ii). The
requirements in this paragraph (b)(2)(iii) shall remain in effect until
December 31, 2009.
(iv) A person may provide notices that are substantially similar
to those set forth in Appendix A--6 to comply with the requirements of
this paragraph (b)(2).
(3) Collection of returned item fees via electronic fund
transfer. (i) General. The person initiating an
electronic fund transfer to collect a fee for the return of an
electronic fund transfer or a check that is unpaid, including due to
insufficient or uncollected funds in the consumer's account, must
obtain the consumer's authorization for each transfer. A consumer
authorizes a one-time electronic fund transfer from his or her account
to pay the fee for the returned item or transfer if the person
collecting the fee provides notice to the consumer stating that the
person may electronically collect the fee, and the consumer goes
forward with the underlying transaction. The notice must state that
the fee will be collected by means of an electronic fund transfer
from the consumer's
{{10-31-07 p.7364}}account if the payment is returned
unpaid and must disclose the dollar amount of the fee. If the fee may
vary due to the amount of the transaction or due to other factors,
then, except as otherwise provided in paragraph (b)(3)(ii) of this
section, the person collecting the fee may disclose, in place of the
dollar amount of the fee, an explanation of how the fee will be
determined.
(iii) Point-of-sale transactions. If a fee for an
electronic fund transfer or check returned unpaid may be collected
electronically in connection with a point-of-sale transaction, the
person initiating an electronic fund transfer to collect the fee must
post the notice described in paragraph (b)(3)(i) of this section in a
prominent and conspicuous location. The person also must either provide
the consumer with a copy of the posted notice (or a substantially
similar notice) at the time of the transaction, or mail the copy (or a
substantially similar notice) to the consumer's address as soon as
reasonably practicable after the person initiates the electronic fund
transfer to collect the fee. If the amount of the fee may vary due to
the amount of the transaction or due to other factors, the posted
notice may explain how the fee will be determined, but the notice
provided to the consumer must state the dollar amount of the fee if the
amount can be calculated at the time the notice is provided or mailed
to the consumer.
(iii) Delayed compliance date for fee disclosure.
Through December 31, 2007, the notice required to be provided to
consumers under paragraph (b)(3)(ii) of this section in connection with
a point-of-sale transaction, whether given to the consumer at the time
of the transaction or subsequently mailed to the consumer, need not
include either the dollar amount of any fee collected electronically
for a check or electronic fund transfer returned unpaid or an
explanation of how the amount of the fee will be determined.
(c) Exclusions from coverage. The term electronic fund
transfer does not include:
(1) Checks. Any transfer of funds originated by check,
draft, or similar paper instrument; or any payment made by check,
draft, or similar paper instrument at an electronic terminal.
(2) Check guarantee or authorization. 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.
(3) Wire or other similar transfers. Any transfer of
funds through Fedwire or through a similar wire transfer system that is
used primarily for transfers between financial institutions or between
businesses.
(4) Securities and commodities transfers. Any
transfer of funds the primary purpose of which is the purchase or sale
of a security or commodity, if the security or commodity is:
(i) Regulated by the Securities and Exchange Commission or the
Commodity Futures Trading Commission;
(ii) Purchased or sold through a broker-dealer regulated by the
Securities and Exchange Commission or through a futures commission
merchant regulated by the Commodity Futures Trading Commission; or
(iii) Held in book-entry form by a Federal Reserve Bank or
federal agency.
(5) Automatic transfers by account-holding institution.
Any transfer of funds under an agreement between a consumer and a
financial institution which provides that the institution will initiate
individual transfers without a specific request from the consumer:
(i) Between a consumer's accounts within the financial
institution;
(ii) From a consumer's account to an account of a member of the
consumer's family held in the same financial institution; or
(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.
(6) Telephone-initiated transfers. Any transfer of
funds that:
(i) Is initiated by a telephone communication between a consumer
and a financial institution making the transfer; and
(ii) Does not take place under a telephone bill-payment or other
written plan in which periodic or recurring transfers are
contemplated.
{{12-31-07 p.7364.01}}
(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.
[Codified to 12 C.F.R. § 205.3]
[Section 205.3 amended at 44 Fed. Reg. 59470,
October 15, 1979, effective November 15, 1979; 45 Fed. Reg. 66347,
October 6, 1980; 46 Fed. Reg. 2973, January 13, 1981, effective January
15, 1981; 46 Fed. Reg. 9920, January 30, 1981, effective January 29,
1981; 47 Fed. Reg. 44713, October 12, 1982; 61 Fed. Reg. 19669, May 2,
1996; 71 Fed. Reg. 1659, January 10, 2006, effective February 9, 2006,
mandatory compliance date is January 1, 2007; 71 Fed. Reg. 51456,
August 30, 2006, effective July 1, 2006; 71 Fed. Reg. 69437, December
1, 2006, effective January 1, 2007]
§ 205.4 General disclosure requirements; jointly offered
services.
(a)(1) Form of disclosures. Disclosures required under
this part shall be clear and readily understandable, in writing, and in
a form the consumer may keep. The disclosures required by this part may
be provided to the consumer in electronic form, subject to compliance
with the consumer consent and other applicable provisions of the
Electronic Signatures in Global and National Commerce Act (E-Sign Act)
(15 U.S.C. 7001 et seq.). A financial institution may use
commonly accepted or readily understandable abbreviations in complying
with the disclosure requirements of this part.
{{12-31-07 p.7365}}
(2) Foreign language disclosures. Disclosures
required under this part may be made in a language other than English,
provided that the disclosures are made available in English upon the
consumer's request.
(b) Additional information; disclosures required by other
laws. A financial institution may include additional information
and may combine disclosures required by other laws (such as the Truth
in Lending Act (15 U.S.C. 1601 et
seq.) or the Truth in Savings Act (12
U.S.C. 4301 et seq.)) with the disclosures required by this
part.
(c) Multiple accounts and account
holders--(1) Multiple accounts. A financial
institution may combine the required disclosures into a single
statement for a consumer who holds more than one account at the
institution.
(2) Multiple account holders. For joint accounts held
by two or more consumers, a financial institution need provide only one
set of the required disclosures and may provide them to any of the
account holders.
(d) Services offered jointly. 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. An institution need make only the disclosures
required by §§ 205.7 and 205.8 that are within its knowledge and
within the purview of its relationship with the consumer for whom it
holds an account.
[Codified to 12 C.F.R. § 205.4]
[Section 205.4 added at 44 Fed. Reg. 59470, October 15, 1979;
amended at 45 Fed. Reg. 8263, February 6, 1980, effective May 10, 1980;
61 Fed. Reg. 19670, May 2, 1996; 63 Fed. Reg. 14532, March 25, 1998; 66
Fed. Reg. 17793, April 4, 2001, effective March 30, 2001; 72 Fed. Reg.
63456, November 9, 2007, effective December 10, 2007, the mandatory
compliance date is October 1, 2008]
§ 205.5 Issuance of access devices.
(a) Solicited issuance. 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
(2) As a renewal of, or in substitution for, an accepted access
device whether issued by the institution or a successor.
(b) Unsolicited issuance. A financial institution may
distribute an access device to a consumer on an unsolicited basis if
the access device is:
(1) Not validated, meaning that the institution has not yet
performed all the procedures that would enable a consumer to initiate
an electronic fund transfer using the access device;
(2) Accompanied by a clear explanation that the access device is
not validated and how the consumer may dispose of it if validation is
not desired;
(3) Accompanied by the disclosures required by § 205.7, of the
consumer's rights and liabilities that will apply if the access device
is validated; and
(4) Validated only in response to the consumer's oral or written
request for validation, after the institution has verified the
consumer's identity by a reasonable means.
[Codified to 12 C.F.R. § 205.5]
[Section 205.4 amended and redesignated as § 205.5 at 44
Fed. Reg. 59464, October 15, 1979; and amended at 45 Fed. Reg. 8263,
February 6, 1980, effective May 10, 1980; 46 Fed. Reg. 2973, January
13, 1981, effective January 15, 1981; 48 Fed. Reg. 14880, April 6,
1983, effective April 1, 1983; 61 Fed. Reg. 19670, May 2,
1996]
{{12-31-07 p.7366}}
§ 205.6 Liability of consumer for unauthorized transfers.
(a) Conditions for liability. A consumer may be held
liable, within the limitations described in paragraph (b) of this
section, for an unauthorized electronic fund transfer involving the
consumer's account only if the financial institution has provided the
disclosures required by § 205.7(b)(1), (2), and (3). If the
unauthorized transfer involved an access device, it must be an accepted
access device and the financial institution must have provided a means
to identify the consumer to whom it was issued.
(b) Limitations on amount of liability. A consumer's
liability for an unauthorized electronic fund transfer or a series of
related unauthorized transfers shall be determined as follows:
(1) Timely notice given. If the consumer notifies the
financial institution within two business days after learning of the
loss or theft of the access device, the consumer's liability shall not
exceed the lesser of $50 or the amount of unauthorized transfers that
occur before notice to the financial institution.
(2) Timely notice not given. If the consumer fails to
notify the financial institution within two business days after
learning of the loss or theft of the access device, the consumer's
liability shall not exceed the lesser of $500 or the sum of:
(i) $50 or the amount of unauthorized transfers that occur within
the two business days, whichever is less; and
(ii) The amount of unauthorized transfers that occur after the
close of two business days and before notice to the institution,
provided the institution establishes that these transfers would not
have occurred had the consumer notified the institution within that
two-day period.
(3) Periodic statement; timely notice not given. A
consumer must report an unauthorized electronic fund transfer that
appears on a periodic statement within 60 days of the financial
institution's transmittal of the statement to avoid liability for
subsequent transfers. If the consumer fails to do so, the consumer's
liability shall not exceed the amount of the unauthorized transfers
that occur after the close of the 60 days and before notice to the
institution, and that the institution establishes would not have
occurred had the consumer notified the institution within the 60-day
period. When an access device is involved in the unauthorized transfer,
the consumer may be liable for other amounts set forth in paragraphs
(b)(1) or (b)(2) of this section, as applicable.
(4) Extension of time limits. If the consumer's delay
in notifying the financial institution was due to extenuating
circumstances, the institution shall extend the times specified above
to a reasonable period.
(5) Notice to financial institution. (i) Notice to a
financial institution is given when a consumer takes steps reasonably
necessary to provide the institution with the pertinent information,
whether or not a particular employee or agent of the institution
actually receives the information.
(ii) The consumer may notify the institution in person, by
telephone, or in writing.
(iii) Written notice is considered given at the time the consumer
mails the notice or delivers it for transmission to the institution by
any other usual means. Notice may be considered constructively given
when the institution becomes aware of circumstances leading to the
reasonable belief that an unauthorized transfer to or from the
consumer's account has been or may be made.
(6) Liability under state law or agreement. If state
law or an agreement between the consumer and the financial institution
imposes less liability than is provided by this section, the consumer's
liability shall not exceed the amount imposed under the state law or
agreement.
[Codified to 12 C.F.R. § 205.6]
[Section 205.5 amended at 44 Fed. Reg. 33837, June 13,
1979, effective August 1, 1979; 44 Fed. Reg. 46434, August 8, 1979,
effective September 10, 1979; section 205.5 amended and
{{6-29-07 p.7366.01}}redesignated as section 205.6
at 44 Fed. Reg. 59470, October 15, 1979, effective November 15, 1980;
48 Fed. Reg. 14881, April 6, 1983, effective April 1, 1983; 53 Fed.
Reg. 52653, December 29, 1988, effective December 30, 1988; 61 Fed.
Reg. 19670, May 2, 1996]
§ 205.7 Initial disclosures.
(a) Timing of disclosures. A financial institution shall
make the disclosures required by this section at the time a consumer
contracts for an electronic fund transfer service or before the first
electronic fund transfer is made involving the consumer's account.
(b) Content of disclosures. A financial institution
shall provide the following disclosures, as applicable:
(1) Liability of consumer. A summary of the consumer's
liability, under § 205.6 or under state or other applicable law or
agreement, for unauthorized electronic fund transfers.
(2) Telephone number and address. The telephone number
and address of the person or office to be notified when the consumer
believes that an unauthorized electronic fund transfer has been or may
be made.
(3) Business days. The financial institution's
business days.
(4) Types of transfers; limitations. The type of
electronic fund transfers that the consumer may make and any
limitations on the frequency and dollar amount of transfers. Details of
the limitations need not be disclosed if confidentiality is essential
to maintain the security of the electronic fund transfer system.
(5) Fees. Any fees imposed by the financial
institution for electronic fund transfers or for the right to make
transfers.
(6) Documentation. A summary of the consumer's right
to receipts and periodic statements, as provided in § 205.9, and
notices regarding preauthorized transfers as provided in
§§ 205.10(a), and 205.10(d).
(7) Stop payment. A summary of the consumer's right to
stop payment of a preauthorized electronic fund transfer and the
procedure for placing a stop-payment order, as provided in
§ 205.10(c).
(8) Liability of institution. 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.
(9) Confidentiality. The circumstances under which, in
the ordinary course of business, the financial institution may provide
information concerning the consumer's account to third parties.
(10) Error resolution. A notice that is substantially
similar to Model Form A--3 as set out in
Appendix A of this
part concerning error resolution.
(11) ATM fees. A notice that a fee may be imposed by
an automated teller machine operator as defined in § 205.16(a)(1),
when the consumer initiates an electronic fund transfer or makes a
balance inquiry, and by any network used to complete the transaction.
(c) Addition of electronic fund transfer services. If an
electronic fund transfer service is added to a consumer's account and
is subject to terms and conditions different from those described in
the initial disclosures, disclosures for the new service are required.
[Codified to 12 C.F.R. § 205.7]
[Section 205.7 added at 44 Fed. Reg. 59470, October 15, 1979;
amended at 45 Fed. Reg. 8263, February 6, 1980, effective May 10, 1980;
61 Fed. Reg. 19671, May 2, 1996; 66 Fed. Reg. 13412, March 6, 2001,
effective March 9, 2001, however, compliance date is delayed until
October 1, 2001; 71 Fed. Reg. 1659, January 10, 2006, effective
February 9, 2006, mandatory compliance date is January 1,
2007]
§ 205.8 Change in terms notice; error resolution notice.
(a) Change in terms notice--(1) Prior
notice required. 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 § 205.7(b) if the change would result in:
(i) Increased fees for the consumer;
(ii) Increased liability for the consumer;
(iii) Fewer types of available electronic fund transfers; or
(iv) Stricter limitations on the frequency or dollar amount of
transfers.
(2) Prior notice exception. A financial institution
need not give prior notice if an immediate change in terms or
conditions is necessary to maintain or restore the security
of
{{6-29-07 p.7366.02}}an account or an electronic
fund transfer system. If the institution makes such a change permanent
and disclosure would not jeopardize the security of the account or
system, the institution shall notify the consumer in writing on or with
the next regularly scheduled periodic statement or within 30 days of
making the change permanent.
(b) Error resolution notice. For accounts to or from
which electronic fund transfers can be made, a financial institution
shall mail or deliver to the consumer, at least once each calendar
year, an error resolution notice substantially similar to the model
form set forth in
{{8-31-07 p.7367}}Appendix A of this part
(Model Form A--3). Alternatively, an institution may include an
abbreviated notice substantially similar to the model form error
resolution notice set forth in Appendix A of this part (Model Form
A--3), on or with each periodic statement required by § 205.9(b).
[Codified to 12 C.F.R. § 205.8]
[Section 205.8 added at 44 Fed. Reg. 59471, October 15, 1979;
amended at 45 Fed. Reg. 8264, February 6, 1980, effective May 10, 1980;
61 Fed. Reg. 19671, May 2, 1996]
§ 205.9 Receipts at electronic terminals; periodic statements.
(a) Receipts at electronic terminals--General. Except as
provided in paragraph (e) of this section, a financial institution
shall make a receipt available to a consumer at the time the consumer
initiates an electronic fund transfer at an electronic terminal. The
receipt shall set forth the following information, as applicable:
(1) Amount. The amount of the transfer. A transaction
fee may be included in this amount, provided the amount of the fee is
disclosed on the receipt and displayed on or at the terminal.
(2) Date. The date the consumer initiates the
transfer.
(3) Type. The type of transfer and the type of the
consumer's account(s) to or from which funds are transferred. The type
of account may be omitted if the access device used is able to access
only one account at that terminal.
(4) Identification. A number or code that identifies
the consumer's account or accounts, or the access device used to
initiate the transfer. The number or code need not exceed four digits
or letters to comply with the requirements of this paragraph (a)(4).
(5) Terminal location. The location of the terminal
where the transfer is initiated, or an identification such as a code or
terminal number. Except in limited circumstances where all terminals
are located in the same city or state, if the location is disclosed, it
shall include the city and state or foreign country and one of the
following:
(i) The street address; or
(ii) A generally accepted name for the specific location; or
(iii) The name of the owner or operator of the terminal if other
than the account-holding institution.
(6) Third party transfer. The name of any third party
to or from whom funds are transferred.
(b) Periodic statements. For an account to or from which
electronic fund transfers can be made, a financial institution shall
send a periodic statement for each monthly cycle in which an electronic
fund transfer has occurred; and shall send a periodic statement at
least quarterly if no transfer has occurred. The statement shall set
forth the following information, as applicable:
(1) Transaction information. For each electronic fund
transfer occurring during the cycle:
(i) The amount of the transfer;
(ii) The date the transfer was credited or debited to the
consumer's account;
(iii) The type of transfer and type of account to or from which
funds were transferred;
(iv) For a transfer initiated by the consumer at an electronic
terminal (except for a deposit of cash or a check, draft, or similar
paper instrument), the terminal location described in paragraph (a)(5)
of this section; and
(v) The name of any third party to or from whom funds were
transferred.
(2) Account number. The number of the account.
(3) Fees. The amount of any fees assessed against the
account during the statement period for electronic fund transfers, for
the right to make transfers, or for account maintenance.
(4) Account balances. The balance in the account at
the beginning and at the close of the statement period.
{{8-31-07 p.7368}}
(5) Address and telephone number for inquiries. The
address and telephone number to be used for inquiries or notice of
errors, preceded by "Direct inquiries to" or similar language.
The address and telephone number provided on an error resolution notice
under § 205.8(b) given on or with the statement satisfies this
requirement.
(6) Telephone number for preauthorized transfers. A
telephone number the consumer may call to ascertain whether
preauthorized transfers to the consumer's account have occurred, if the
financial institution uses the telephone-notice option under
§ 205.10(a)(1)(iii).
(c) Exceptions to the periodic statement requirement for
certain accounts--(1) Preauthorized transfers to accounts.
For accounts that may be accessed only by preauthorized transfers
to the account the following rules apply:
(i) Passbook accounts. For passbook accounts, the
financial institution need not provide a periodic statement if the
institution updates the passbook upon presentation or enters on a
separate document the amount and date of each electronic fund transfer
since the passbook was last presented.
(ii) Other accounts. For accounts other than passbook
accounts, the financial institution must send a periodic statement at
least quarterly.
(2) Intra-institutional transfers. For an electronic
fund transfer initiated by the consumer between two accounts of the
consumer in the same institution, documenting the transfer on a
periodic statement for one of the two accounts satisfies the periodic
statement requirement.
(3) Relationship between paragraphs (c)(1) and (c)(2) of
this section. 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.
(d) Documentation for foreign-initiated transfers. 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
(2) The financial institution treats an inquiry for clarification
or documentation as a notice of error in accordance with § 205.11.
(e) Exception for receipts in small-value transfers. A
financial institution is not subject to the requirement to make
available a receipt under paragraph (a) of this section if the amount
of the transfer is $15 or less.
[Codified to 12 C.F.R. § 205.9]
[Section 205.9 added at 45 Fed. Reg. 8264, February 6, 1980;
amended at 45 Fed. Reg. 25383, April 15, 1980, effective May 10, 1980;
45 Fed. Reg. 66347, October 6, 1980; 47 Fed. Reg. 44713, October 12,
1982; 48 Fed. Reg. 14881, April 6, 1983, effective April 1, 1983; 49
Fed. Reg. 40798, October 18, 1984, effective October 16, 1984; 59 Fed.
Reg. 61789, December 2, 1994, effective December 1, 1994; 60 Fed. Reg.
15032, March 22, 1995, effective April 24, 1995; 61 Fed. Reg. 19671,
May 2, 1996; 72 Fed. Reg. 36593, July 5, 2007, effective August 6,
2007]
§ 205.10 Preauthorized transfers.
(a) Preauthorized transfers to consumer's
account--(1) Notice by financial institution. When a
person initiates preauthorized electronic fund transfers to a
consumer's account at least once every 60 days, the account-holding
financial institution shall provide notice to the consumer by:
(i) Positive notice. Providing oral or written notice
of the transfer within two business days after the transfer occurs; or
(ii) Negative notice. Providing oral or written
notice, within two business days after the date on which the transfer
was scheduled to occur, that the transfer did not occur; or
(iii) Readily-available telephone line. Providing a
readily available telephone line that the consumer may call to
determine whether the transfer occurred and disclosing the telephone
number on the initial disclosure of account terms and on each
periodic statement.
{{10-30-98 p.7369}}
(2) Notice by payor. A financial institution need not
provide notice of a transfer if the payor gives the consumer positive
notice that the transfer has been initiated.
(3) Crediting. 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.
(b) Written authorization for preauthorized transfers from
consumer's account. Preauthorized electronic fund transfers from a
consumer's account may be authorized only by a writing signed or
similarly authenticated by the consumer. The person that obtains the
authorization shall provide a copy to the consumer.
(c) Consumer's right to stop payment--(1) Notice.
A consumer may stop payment of a preauthorized electronic fund
transfer from the consumer's account by notifying the financial
institution orally or in writing at least three business days before
the scheduled date of the transfer.
(2) Written confirmation. The financial institution
may require the consumer to give written confirmation of a stop-payment
order within 14 days of an oral notification. An institution that
requires written confirmation shall inform the consumer of the
requirement and provide the address where confirmation must be sent
when the consumer gives the oral notification. An oral stop-payment
order ceases to be binding after 14 days if the consumer fails to
provide the required written confirmation.
(d) Notice of transfers varying in
amount--(1) Notice. When a preauthorized electronic
fund transfer from the consumer's accounts will vary in amount from the
previous transfer under the same authorization or from the
preauthorized amount, the designated payee or the financial institution
shall send the consumer written notice of the amount and date of the
transfer at least 10 days before the scheduled date of transfer.
(2) Range. 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.
(e) Compulsory use--(1) Credit. No financial
institution or other person may condition an extension of credit to a
consumer on the consumer's repayment by preauthorized electronic fund
transfers, except for credit extended under an overdraft credit plan or
extended to maintain a specified minimum balance in the consumer's
account.
(2) Employment or government benefit. 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.
[Codified to 12 C.F.R. § 205.10]
[Section 205.10 added at 44 Fed. Reg. 59471, October 15, 1979;
amended at 45 Fed. Reg. 8265, February 6, 1980, effective May 10, 1980;
61 Fed. Reg. 19672, May 2, 1996]
§ 205.11 Procedures for resolving errors.
(a) Definition of error--(1) Types of transfers
or inquiries covered. The term error means:
(i) An unauthorized electronic fund transfer;
(ii) An incorrect electronic fund transfer to or from the
consumer's account;
(iii) The omission of an electronic fund transfer from a periodic
statement;
(iv) A computational or bookkeeping error made by the financial
institution relating to an electronic fund transfer;
(v) The consumer's receipt of an incorrect amount of money from
an electronic terminal;
(vi) An electronic fund transfer not identified in accordance
with §§ 205.9 or 205.10(a); or
(vii) The consumer's request for documentation required by
§§ 205.9 or 205.10(a) or for additional information or clarification
concerning an electronic fund transfer,
{{10-30-98 p.7370}}including a request
the consumer makes to determine whether an error exists under
paragraphs (a)(1)(i) through (vi) of this section.
(2) Types of inquiries not covered. The term
error does not include:
(i) A routine inquiry about the consumer's account balance;
(ii) A request for information for tax or other recordkeeping
purposes; or
(iii) A request for duplicate copies of documentation.
(b) Notice of error from consumer--(1) Timing;
contents. A financial institution shall comply with the
requirements of this section with respect to any oral or written notice
of error from the consumer that:
(i) Is received by the institution no later than 60 days after
the institution sends the periodic statement or provides the passbook
documentation, required by § 205.9, on which the alleged error is
first reflected;
(ii) Enables the institution to identify the consumer's name and
account number; and
(iii) Indicates why the consumer believes an error exists and
includes to the extent possible the type, date, and amount of the
error, except for requests described in paragraph (a)(1)(vii) of this
section.
(2) Written confirmation. A financial institution may
require the consumer to give written confirmation of an error within 10
business days of an oral notice. An institution that requires written
confirmation shall inform the consumer of the requirement and provide
the address where confirmation must be sent when the consumer gives the
oral notification.
(3) Request for documentation or clarifications. When
a notice of error is based on documentation or clarification that the
consumer requested under paragraph (a)(1)(vii) of this section, the
consumer's notice of error is timely if received by the financial
institution no later than 60 days after the institution sends the
information requested.
(c) Time limits and extent of
investigation--(1) Ten-day period. A financial
institution shall investigate promptly and, except as otherwise
provided in this paragraph (c), shall determine whether an error
occurred within 10 business days of receiving a notice of error. This
institution shall report the results to the consumer within three
business days after completing its investigation. The institution shall
correct the error within one business day after determining that an
error occurred.
(2) Forty-five day period. If the financial
institution is unable to complete its investigation within 10 business
days, the institution may take up to 45 days from receipt of a notice
of error to investigate and determine whether an error occurred,
provided the institution does the following:
(i) Provisionally credits the consumer's account in the amount of
the alleged error (including interest where applicable) within 10
business days of receiving the error notice. If the financial
institution has a reasonable basis for believing that an unauthorized
electronic fund transfer has occurred and the institution has satisfied
the requirements of § 205.6(a), the institution may withhold a
maximum of $50 from the amount credited. An institution need not
provisionally credit the consumer's account if:
(A) The institution requires but does not receive written
confirmation within 10 business days of an oral notice of error; or
(B) The alleged error involves an account that is subject to
Regulation T (Securities Credit by Brokers and Dealers,
12 CFR part 220);
(ii) Informs the consumer, within two business days after the
provisional crediting, of the amount and date of the provisional
crediting and gives the consumer full use of the funds during the
investigation;
(iii) Corrects the error, if any, within one business day after
determining that an error occurred; and
(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).
(3) Extension of time periods. The time periods in
paragraphs (c)(1) and (c)(2) of this section are extended as follows:
(i) The applicable time is 20 business days in place of 10
business days under paragraphs (c)(1) and (c)(2) of this section if the
notice of error involves an electronic fund
{{10-30-98 p.7371}}transfer to or from
the account within 30 days after the first deposit to the account was
made.
(ii) The applicable time is 90 days in place of 45 days under
paragraph (c)(2) of this section, for completing an investigation, if a
notice of error involves an electronic fund transfer that:
(A) Was not initiated within a state;
(B) Resulted from a point-of-sale debit card transaction; or
(C) Occurred within 30 days after the first deposit to the
account was made.
(4) Investigation. With the exception of transfers
covered by § 205.14, a financial institution's review of its own
records regarding an alleged error satisfies the requirements of this
section if:
(i) The alleged error concerns a transfer to or from a third
party; and
(ii) There is no agreement between the institution and the third
party for the type of electronic fund transfer involved.
(d) Procedures if financial institution determines no error
or different error occurred. In addition to following the
procedures specified in paragraph (c) of this section, the financial
institution shall follow the procedures set forth in this paragraph (d)
if it determines that no error occurred or that an error occurred in a
manner or amount different from that described by the consumer:
(1) Written explanation. 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. Upon request, the institution shall promptly provide
copies of the documents.
(2) Debiting provisional credit. Upon debiting a
provisionally credited amount, the financial institution shall:
(i) Notify the consumer of the date and amount of the
debiting;
(ii) Notify the consumer that the institution will honor checks,
drafts, or similar instruments payable to third parties and
preauthorized transfers from the consumer's account (without charge to
the consumer as a result of an overdraft) for five business days after
the notification. The institution shall honor items as specified in the
notice, but need honor only items that it would have paid if the
provisionally credited funds had not been debited.
(e) Reassertion of error. A financial institution that
has fully complied with the error resolution requirements has no
further responsibilities under this section should the consumer later
reassert the same error, except in the case of an error asserted by the
consumer following receipt of information provided under paragraph
(a)(1)(vii) of this section.
[Codified to 12 C.F.R. § 205.11]
[Section 205.11 added at 45 Fed. Reg. 8265, February 6, 1980,
effective May 10, 1980; amended at 47 Fed. Reg. 44713, October 12,
1982; 48 Fed. Reg. 14881, April 6, 1983, effective April 1, 1983; 49
Fed. Reg. 40798, October 18, 1984, effective October 16, 1984; 61 Fed.
Reg. 19673, May 2, 1996; 63 Fed. Reg. 52118, September 29, 1998,
effective September 24, 1998]
§ 205.12 Relation to other laws.
(a) Relation to Truth in Lending. (1) The Electronic
Fund Transfer Act and this part govern:
(i) The addition to an accepted credit card, as defined in
Regulation Z (12 CFR
226.12(a)(2), footnote 21), of the capability to initiate
electronic fund transfers;
(ii) The issuance of an access device that permits credit
extensions (under a preexisting agreement between a consumer and a
financial institution) only when the consumer's account is overdrawn or
to maintain a specified minimum balance in the consumer's account; and
(iii) A consumer's liability for an unauthorized electronic fund
transfer and the investigation of errors involving an extension of
credit that occurs under an agreement between the consumer and a
financial institution to extend credit when the
consumer's
{{10-30-98 p.7372}}account is
overdrawn or to maintain a specified minimum balance in the consumer's
account.
(2) The Truth in Lending Act and Regulation Z (12 CFR part 226),
which prohibit the unsolicited issuance of credit cards, govern:
(i) The addition of a credit feature to an accepted access
device; and
(ii) Except as provided in paragraph (a)(1)(ii) of this section,
the issuance of a credit card that is also an access device.
(b) Preemption of inconsistent state
laws--(1) Inconsistent requirements. The Board shall
determine, upon its own motion or upon the request of a state,
financial institution, or other interested party, whether the act and
this part preempt state law relating to electronic fund transfers. Only
state laws that are inconsistent with the act and this part are
preempted and then only to the extent of the inconsistency. A state law
is not inconsistent with the act and this part if it is more protective
of consumers.
(2) Standards for determination. State law is
inconsistent with the requirements of the act and this part if it:
(i) Requires or permits a practice or act prohibited by the
federal law;
(ii) Provides for consumer liability for unauthorized electronic
fund transfers that exceeds the limits imposed by the federal law;
(iii) Allows longer time period than the federal law for
investigating and correcting alleged errors, or does not require the
financial institution to credit the consumer's account during an error
investigation in accordance with § 205.11(c)(2)(i); or
(iv) Requires initial disclosures, periodic statements, or
receipts that are different in content from those required by the
federal law except to the extent that the disclosures relate to
consumer rights granted by the state law and not by the federal law.
(c) State exemptions--(1) General rule. Any
state may apply for an exemption from the requirements of the act or
this part for any class of electronic fund transfers within the state.
The Board shall grant an exemption if it determines that:
(i) Under state law the class of electronic fund transfers is
subject to requirements substantially similar to those imposed by the
federal law; and
(ii) There is adequate provision for state enforcement.
(2) Exception. To assure that the federal and state
courts continue to have concurrent jurisdiction, and to aid in
implementing the act:
(i) No exemption shall extend to the civil liability provisions
of section 915 of the act; and
(ii) When the Board grants an exemption, the state law
requirements shall constitute the requirements of the federal law for
purposes of section 915 of the act, except for state law requirements
not imposed by the federal law.
[Codified to 12 C.F.R. § 205.12]
[Section 205.12 amended at 44 Fed. Reg. 59471, October 15, 1979,
effective May 10, 1980; 61 Fed. Reg. 19674, May 2,
1996]
§ 205.13 Administrative enforcement; record retention.
(a) Enforcement by federal agencies. Compliance with
this part is enforced by the agencies listed in Appendix B of this
part.
(b) Record retention. (1) Any person subject to the act
and this part shall retain evidence of compliance with the requirements
imposed by the act and this part for a period of not less than two
years from the date disclosures are required to be made or action is
required to be taken.
(2) Any person subject to the act and this part having actual
notice that it is the subject of an investigation or an enforcement
proceeding by its enforcement agency, or having been served with notice
of an action filed under sections
910, 915, or 916(a) of
the act, shall retain the records that pertain to the investigation,
action, or proceeding until final disposition of the matter unless an
earlier time is allowed by court or agency order.
[Codified to 12 C.F.R. § 205.13]
{{8-29-97 p.7373}}
[Section 205.13 added at 44 Fed. Reg. 59472, October 15, 1979;
amended at 45 Fed. Reg. 8266, February 6, 1980, effective May 10, 1980;
50 Fed. Reg. 8708, March 5, 1985, effective March 4, 1985; 54 Fed. Reg.
53539, December 29, 1989; 61 Fed. Reg. 19674, May 2,
1996]
§ 205.14 Electronic fund transfer service provider not holding
consumer's account.
(a) Provider of electronic fund transfer service. A
person that provides an electronic fund transfer service to a consumer
but that does not hold the consumer's account is subject to all
requirements of this part if the person:
(1) Issues a debit card (or other access device) that the
consumer can use to access the consumer's account held by a financial
institution; and
(2) Has no agreement with the account-holding institution
regarding such access.
(b) Compliance by service provider. In addition to the
requirements generally applicable under this part, the service provider
shall comply with the following special rules:
(1) Disclosures and documentation. The service
provider shall give the disclosures and documentation required by
§§ 205.7,
205.8, and
205.9 that are within the
purview of its relationship with the consumer. 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.
(2) Error resolution. (i) The service provider shall
extend by a reasonable time the period in which notice of an error must
be received, specified in § 205.11(b)(1)(i), if a delay resulted from
an initial attempt by the consumer to notify the account-holding
institution.
(ii) The service provider shall disclose to the consumer the date
on which it initiates a transfer to effect a provisional credit in
accordance with § 205.11(c)(2)(ii).
(iii) If the service provider determines an error occurred, it
shall transfer funds to or from the consumer's account, in the
appropriate amount and within the applicable time period, in accordance
with § 205.11(c)(2)(i).
(iv) If funds were provisionally credited and the service
provider determines no error occurred, it may reverse the credit. The
service provider shall notify the account-holding institution of the
period during which the account-holding institution must honor debits
to the account in accordance with § 205.11(d)(2)(ii). If an overdraft
results, the service provider shall promptly reimburse the
account-holding institution in the amount of the overdraft.
(c) Compliance by account-holding institution. The
account-holding institution need not comply with the requirements of
the act and this part with respect to electronic fund transfers
initiated through the service provider except as follows:
(1) Documentation. The account-holding institution
shall provide a periodic statement that describes each electronic
fund transfer initiated by the consumer with the access device issued
by the service provider. The account-holding institution has no
liability for
{{8-29-97 p.7374}}the failure to comply with
this requirement if the service provider did not provide the necessary
information; and
(2) Error resolution. Upon request, the
account-holding institution shall provide information or copies of
documents needed by the service provider to investigate errors or to
furnish copies of documents to the consumer. The account-holding
institution shall also honor debits to the account in accordance with
§ 205.11(d)(2)(ii).
[Codified to 12 C.F.R. § 205.14]
[Section 205.14 added at 45 Fed. Reg. 8266, February 6, 1980,
effective May 10, 1980; amended at 52 Fed. Reg. 30911, August 18, 1987,
effective November 15, 1987; 61 Fed. Reg. 19674, May 2,
1996]
§ 205.15 Electronic fund transfer of government benefits.
(a) Government agency subject to regulation. (1) A
government agency is deemed to be a financial institution for purposes
of the act and this part if directly or indirectly it issues an access
device to a consumer for use in initiating an electronic fund transfer
of government benefits from an account, other than needs-tested
benefits in a program established under state or local law or
administered by a state or local agency. The agency shall comply with
all applicable requirements of the act and this part, except as
provided in this section.
(2) For purposes of this section, the term account
means an account established by a government agency for
distributing government benefits to a consumer electronically, such as
through automated teller machines or point-of-sale terminals, but does
not include an account for distributing needs-tested benefits in a
program established under state or local law or administered by a state
or local agency.
(b) Issuance of access devices. For purposes of this
section, a consumer is deemed to request an access device when the
consumer applies for government benefits that the agency disburses or
will disburse by means of an electronic fund transfer. The agency shall
verify the identity of the consumer receiving the device by reasonable
means before the device is activated.
(c) Alternative to periodic statement. A government
agency need not furnish the periodic statement required by
§ 205.9(b) if the agency
makes available to the consumer:
(1) The consumer's account balance, through a readily available
telephone line and at a terminal (such as by providing balance
information at a balance-inquiry terminal or providing it, routinely or
upon request, on a terminal receipt at the time of an electronic fund
transfer); and
(2) 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 of a request by the
consumer.
(d) Modified requirements. A government agency that does
not furnish periodic statements, in accordance with paragraph (c) of
this section, shall comply with the following special rules:
(1) Initial disclosures. The agency shall modify the
disclosures under § 205.7(b) by disclosing:
(i) Account balance. The means by which the consumer
may obtain information concerning the account balance, including a
telephone number. The agency provides a notice substantially similar to
the notice contained in paragraph A--5 in Appendix A of this part.
(ii) Written account history. A summary of the
consumer's right to receive a written account history upon request, in
place of the periodic statement required by § 205.7(b)(6), and the
telephone number to call to request an account history. This disclosure
may be made by providing a notice substantially similar to the notice
contained in paragraph A--5 in Appendix A of this part.
{{12-31-07 p.7375}}
(iii) Error resolution. A notice concerning error
resolution that is substantially similar to the notice contained in
paragraph A--5 in Appendix A of this part, in place of the notice
required by § 205.7(b)(10).
(2) Annual error resolution notice. The agency shall
provide an annual notice concerning error resolution that is
substantially similar to the notice contained in paragraph A--5 in
appendix A, in place of the notice required by § 205.8(b).
(3) Limitations on liability. For purposes of
§ 205.6(b)(3), regarding a
60-day period for reporting any unauthorized transfer that appears on a
periodic statement, the 60-day period shall begin with transmittal of a
written account history or other account information provided to the
consumer under paragraph (c) of this section.
(4) Error resolution. The agency 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 no later than 60 days after
the consumer obtains the written account history or other account
information, under paragraph (c) of this section, in which the error is
first reflected.
[Codified to 12 C.F.R. § 205.15]
[Section 205.15 added at 59 Fed. Reg. 10683, March 7, 1994,
effective February 28, 1994; amended at 61 Fed. Reg. 19675, May 2,
1996; 62 Fed. Reg. 43469, August 14, 1997, effective September 15,
1997
§ 205.16 Disclosures at automated teller machines.
(a) Definition. Automated teller machine operator means
any person that operates an automated teller machine at which a
consumer initiates an electronic fund transfer or a balance inquiry and
that does not hold the account to or from which the transfer is made,
or about which an inquiry is made.
(b) General. An automated teller machine operator that
imposes a fee on a consumer for initiating an electronic fund transfer
or a balance inquiry shall:
(1) Provide notice that a fee will be imposed for providing
electronic fund transfer services or a balance inquiry; and
(2) Disclose the amount of the fee.
(c) Notice requirement. To meet the requirements of
paragraph (b) of this section, an automated teller machine operator
must comply with the following:
(1) On the machine. Post in a prominent and
conspicuous location on or at the automated teller machine a notice
that:
(i) A fee will be imposed for providing electronic fund transfer
services or for a balance inquiry; or
(ii) A fee may be imposed for providing electronic fund transfer
services or for a balance inquiry, but the notice in this paragraph
(c)(1)(ii) may be substituted for the notice in paragraph (c)(1)(i)
only if there are circumstances under which a fee will not be imposed
for such services; and
(2) Screen or paper notice. Provide the notice
required by paragraphs (b)(1) and (b)(2) of this section either by
showing it on the screen of the automated teller machine or by
providing it on paper, before the consumer is committed to paying a
fee.
(d) Temporary exemption. Through December 31, 2004, the
notice requirement in paragraph (c)(2) of this section does not apply
to any automated teller machine that lacks the technical capability to
provide such information.
(e) Imposition of fee. An automated teller machine
operator may impose a fee on a consumer for initiating an electronic
fund transfer or a balance inquiry only if
(1) The consumer is provided the notices required under paragraph
(c) of this section, and
(2) The consumer elects to continue the transaction or inquiry
after receiving such notices.
[Codified to 12 C.F.R. § 205.16]
[Section 205.16 added at 66 Fed. Reg. 13412, March 6,
2001, effective March 9, 2001, however, compliance date is delayed
until October 1, 2001; amended at 71 Fed. Reg. 1659, January 10, 2006,
effective February 9, 2006, mandatory compliance date is January 1,
2007]
{{12-31-07 p.7376}}
§ 205.17 [Reserved]
§ 205.18 Requirements for Financial Institutions Offering
Payroll Card Accounts.
(a) Coverage. A financial institution shall comply with
all applicable requirements of the act and this part with respect to
payroll card accounts except as provided in this section.
(b) Alternative to periodic statements.
(1) A financial institution need not furnish periodic statements
required by § 205.9(b) if the institution, makes available to the
consumer--
(i) The consumer's account balance, through a readily available
telephone line;
(ii) An electronic history of the consumer's account
transactions, such as through an Internet Web site, that covers at
least 60 days preceding the date the consumer electronically accesses
the account; and
(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.
(2) The history of account transactions provided under paragraphs
(b)(1)(ii) and (iii) of this section must include the information set
forth in § 205.9(b).
(c) Modified requirements. A financial institution that
provides information under paragraph (b) of this section, shall comply
with the following:
(1) Initial disclosures. The financial institution
shall modify the disclosures under § 205.7(b) by disclosing--
(i) Account information. A telephone number that the
consumer may call to obtain the account balance, the means by which the
consumer can obtain an electronic account history, such as the address
of an Internet Web site, and a summary of the consumer's right to
receive a written account history upon request (in place of the summary
of the right to receive a periodic statement required by
§ 205.7(b)(6)), including a telephone number to call to request a
history. The disclosure required by this paragraph (c)(1)(i) may be
made by providing a notice substantially similar to the notice
contained in paragraph A--7(a) in appendix A of this part.
{{10-31-07 p.7377}}
(ii) Error resolution. A notice concerning error
resolution that is substantially similar to the notice contained in
paragraph A--7(b) in appendix A of this part, in place of the notice
required by § 205.7(b)(10).
(2) Annual error resolution notice. The financial
institution shall provide an annual notice concerning error resolution
that is substantially similar to the notice contained in paragraph
A--7(b) in appendix A of this part, in place of the notice required by
§ 205.8(b). Alternatively, a financial institution may include on or
with each electronic and written history provided in accordance with
§ 205.18(b)(1), a notice substantially similar to the abbreviated
notice for periodic statements contained in paragraph A--3(b) in
appendix A of this part, modified as necessary to reflect the error
resolution provision set forth in this section.
(3) Limitations on liability. (i) For purposes of
§ 205.6(b)(3), the 60-day period for reporting any unauthorized
transfer shall begin on the earlier of:
(A) 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
transfer; or
(B) The date the financial institution sends a written history of
the consumer's account transactions requested by the consumer under
paragraph (b)(1)(iii) of this section in which the unauthorized
transfer is first reflected.
(ii) A financial institution may comply with paragraph (c)(3)(i)
of this section by limiting the consumer's liability for an
unauthorized transfer as provided under § 205.6(b)(3) for any
transfer reported by the consumer within 120 days after the transfer
was credited or debited to the consumer's account.
(4) Error resolution. (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
(B) Sixty days after the date the financial institution sends a
written history of the consumer's account transactions requested by
the consumer under paragraph (b)(1)(iii) of this section in which the
alleged error is first reflected.
(ii) In lieu of following the procedures in paragraph (c)(4)(i)
of this section, a financial institution complies with the requirements
for resolving errors in § 205.11 if it investigates any oral or
written notice of an error from the consumer that is received by the
institution within 120 days after the transfer allegedly in error was
credited or debited to the consumer's account.
[Codified to 12 C.F.R. § 205.18]
[Source: Section 205.18 added at 71 Fed. Reg. 1481,
January 10, 2006, effective July 1, 2007; amended at 71 Fed. Reg.
51449, August 30, 2006, effective July 1, 2007]
{{10-31-07 p.7378}}
Appendix A to Part 205Model Disclosure Clauses and Forms
Table of Contents
A--1--MODEL CLAUSES FOR UNSOLICITED ISSUANCE
(§ 205.5(b)(2))
A--2--MODEL CLAUSES FOR INITIAL DISCLOSURES (§ 205.7(b))
A--3--MODEL FORMS FOR ERROR RESOLUTION NOTICE
(§§ 205.7(b)(10) and 205.8(b))
A--4--MODEL FORM FOR SERVICE-PROVIDING INSTITUTIONS
(§ 205.14(b)(1)(ii))
A--5--MODEL FORMS FOR GOVERNMENT AGENCIES (§ 205.15(d)(1) and (2))
A--6--MODEL CLAUSE FOR AUTHORIZING ONE-TIME ELECTRONIC FUND
TRANSFERS USING INFORMATION FROM A CHECK (§ 205.3(b)(2))
A--7--MODEL CLAUSES FOR FINANCIAL INSTITUTIONS OFFERING PAYROLL CARD
ACCOUNTS (§ 205.18(c))
A--8 MODEL CLAUSE FOR ELECTRONIC COLLECTION OF RETURNED ITEM FEES
A--1--MODEL CLAUSES FOR UNSOLICITED ISSUANCE
(§ 205.5(b)(2))
(a) Accounts using cards. You cannot use the enclosed
card to transfer money into or out of your account until we have
validated it. If you do not want to use the card, please (destroy it at
once by cutting it in half).
[Financial institution may add validation instructions here.]
(b) Accounts using codes. You cannot use the enclosed
code to transfer money into or out of your account until we have
validated it. If you do not want to use the code, please (destroy this
notice at once).
[Financial institution may add validation instructions here.]
A--2--MODEL CLAUSES FOR INITIAL DISCLOSURES
(§ 205.7(b))
(a) Consumer Liability (§ 205.7(b)(1)).
(Tell AT ONCE if you believe your [card] [code] has been lost or
stolen, or if you believe that an electronic fund transfer has been
made without your permission using information from your check.
Telephoning is the best way of keeping your possible losses down. You
could lose all the money in your account (plus your maximum overdraft
line of credit). If you tell us within 2 business days after you learn
of the loss or theft or your [card] [code], you can lose no more
than $50 if someone used your [card] [code] without your
permission.)
If you do NOT tell use within 2 business days after you learn of the
loss or theft of your [card] [code], and we can prove we could have
stopped someone from using your [card] [code] without your
permission if you had told us, you could lose as much as $500.
Also, if your statement shows transfers that you did not make,
including those made by card, code or other means, tell us at once. If
you do not tell us within 60 days after the statement was mailed to
you, you may not get back any money you lost after the 60 days if we
can prove that we could have stopped someone from taking the money if
you had told us in time. If a good reason (such as a long trip or a
hospital stay) kept you from telling us, we will extend the time
periods.
(b) Contact in event of unauthorized transfer
(§ 205.7(b)(2)). If you believe your [card] [code] has been
lost or stolen, call: [Telephone number] or write: [Name of person
or office to be notified] [Address]
You should also call the number or write to the address listed above
if you believe a transfer has been made using the information from your
check without your permission.
(c) Business days (§ 205.7(b)(3)). For purposes of
these disclosures, our business days are (Monday thru Friday) (Monday
through Saturday) (any day including Saturdays and Sundays). Holidays
are (not) included.
(d) Transfer types and limitations
(§ 205.7(b)(4)--(1) Account access. You may use your
[card] [code] to:
{{10-31-06 p.7379}}
(i) Withdraw cash from your [checking] [or] [savings]
account.
(ii) Make deposits to your [checking] [or] [savings]
account.
(iii) Transfer funds between your checking and savings accounts
whenever you request.
(iv) Pay for purchases at places that have agreed to accept the
[card] [code].
(v) Pay bills directly [by telephone] from your [checking]
[or] [savings] account in the amounts and on the days you request.
Some of these services may not be available at all terminals.
(2) Electronic check conversion. You may authorize a
merchant or other payee to make a one-time electronic payment from your
checking account using information from your check to:
(i) Pay for purchases.
(ii) Pay bills.
(3) Limitations on frequency of transfers--(i) You
may make only [insert number, e.g., 3] cash withdrawals from our
terminals each [insert time period, e.g., week].
(ii) You can use your telephone bill-payment service to pay
[insert number] bills each [insert time period] [telephone call].
(iii) You can use our point-of-sale transfer service for [insert
number] transactions each [insert time period].
(iv) For security reasons, there are limits on the number of
transfers you can make using our [terminals] [telephone bill-payment
service] [point-of-sale transfer service].
(4) Limitations on dollar amounts of
transfers.--(i) You may withdraw up to [insert dollar amount]
from our terminals each [insert time period] time you use the
[card] [code].
(ii) You may buy up to [insert dollar amount] worth of goods or
services each [insert time period] time you use the [card] [code]
in our point-of-sale transfer service.
(e) Fees (§ 205.7(b)(5)--(1) Per transfer
charge. We will charge you [insert dollar amount] for each
transfer you make using our [automated teller machines] [telephone
bill-payment service] [point-of-sale transfer service].
(2) Fixed charge. We will charge you [insert dollar
amount] each [insert time period] for our [automated teller machine
service] [telephone bill-payment service] [point-of-sale transfer
service].
(3) Average or minimum balance charge. We will only
charge you for using our [automated teller machines] [telephone
bill-payment service] [point-of-sale transfer service] if the
[average] [minimum] balance in your [checking account] [savings
account] [accounts] falls below [insert dollar amount]. If it
does, we will charge you [insert dollar amount] each [transfer]
[insert time period].
(f) Confidentiality (§ 205.7(b)(9)). We will disclose
information to third parties about your account or the transfers you
make:
(i) Where it is necessary for completing transfers, or
(ii) In order to verify the existence and condition of your
account for a third party, such as a credit bureau or merchant, or
(iii) In order to comply with government agency or court orders,
or
(iv) If you give us your written permission.
(g) Documentation (§ 205.7(b)(6))--(1) Terminal
transfers. You can get a receipt at the time you make any transfer
to or from your account using one of our [automated teller machines]
[or] [point-of-sale terminals].
(2) Preauthorized credits. If you have arranged to
have direct deposits made to your account at least once every 60 days
from the same person or company, (we will let you know if the deposit
is [not] made.) [the person or company making the deposit will tell
you every time they send us the money] [you can call us at (insert
telephone number) to find out whether or not the deposit has been
made].
(3) Periodic statements. You will get a [monthly]
[quarterly] account statement (unless there are no transfers in a
particular month. In any case you will get the statement at least
quarterly).
(4) Passbook account where the only possible electronic
fund transfers are preauthorized credits. If you bring your
passbook to us, we will record any electronic deposits that were made
to your account since the last time you brought in your
passbook.
{{10-31-06 p.7380}}
(h) Preauthorized payments (§ 205.7(b)(6), (7) and (8);
§ 205.10(d)--(1) Right to stop payment and procedure for
doing so. If you have told us in advance to make regular payments
out of your account, you can stop any of these payments. Here's how:
Call us at [insert telephone number], or write us at [insert
address], in time for us to receive your request 3 business days or
more before the payment is scheduled to be made. If you call, we may
also require you to put your request in writing and get it to us within
14 days after you call. (We will charge you [insert amount] for each
stop-payment order you give.)
(2) Notice of varying amounts. If these regular
payments may vary in amount, [we] [the person you are going to pay]
will tell you, 10 days before each payment, when it will be made and
how much it will be. (You may choose instead to get this notice only
when the payment would differ by more than a certain amount from the
previous payment, or when the amount would fall outside certain limits
that you set.)
(3) Liability for failure to stop payment of preauthorized
transfer. If you order us to stop one of these payments 3 business
days or more before the transfer is scheduled, and we do not do so, we
will be liable for your losses or damages.
(i) Financial institution's liability (§ 205.7(b)(8)).
If we do not complete a transfer to or from your account on time
or in the correct amount according to our agreement with you, we will
be liable for your losses or damages. However, there are some
exceptions. We will not be liable, for instance:
(1) If, through no fault of ours, you do not have enough money in
your account to make the transfer.
(2) If the transfer would go over the credit limit on your
overdraft line.
(3) If the automated teller machine where you are making the
transfer does not have enough cash.
(4) If the [terminal] [system] was not working properly and
you knew about the breakdown when you started the transfer.
(5) If circumstances beyond our control (such as fire or flood)
prevent the transfer, despite reasonable precautions that we have
taken.
(6) There may be other exceptions stated in our agreement with
you.
(j) ATM fees (§ 205.7(b)(11)). When you use an ATM
not owned by us, you may be charged a fee by the ATM operator [or any
network used] (and you may be charged a fee for a balance inquiry even
if you do not complete a fund transfer).
A--3--MODEL FORMS FOR ERROR RESOLUTION NOTICE
§§ 205.7(b)(10) and
205.8(b))
(a) Initial and annual error resolution notice
(§§ 205.7(b)(10) and 205.8(b))
In Case of Errors or Questions About Your Electronic Transfers
Telephone us at [insert telephone number] or Write us at [insert
address] [or E-mail us at [insert electronic mail address]] as
soon as you can, if you think your statement or receipt is wrong or if
you need more information about a transfer listed on the statement or
receipt. We must hear from you no later than 60 days after we sent the
FIRST statement on which the problem or error appeared.
(1) Tell us your name and account number (if any).
(2) Describe the error or the transfer you are unsure about, and
explain as clearly as you can why you believe it is an error or why you
need more information.
(3) Tell us the dollar amount of the suspected error.
If you tell us orally, we may require that you send us your
complaint or question in writing within 10 business days.
We will determine whether an error occurred within 10 business days
after we hear from you and will correct any error promptly. If we need
more time, however, we may take up to 45 days to investigate your
complaint or 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. 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.
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. For new accounts, we may take
up to 20 business days to credit your account for the amount you think
is in error.
{{10-31-06 p.7381}}
We will tell you the results within three business days after
completing our investigation. If we decide that there was no error, we
will send you a written explanation.
You may ask for copies of the documents that we used in our
investigation.
(b) Error resolution notice on periodic statements
(§ 205.8(b))
In Case of Errors or Questions About Your Electronic Transfers,
Telephone us at [insert telephone number] or Write us at [insert
address] as soon as you can, if you think your statement or receipt is
wrong or if you need more information about a transfer on the statement
or receipt. We must hear from you no later than 60 days after we sent
you the FIRST statement on which the error or problem appeared.
(1) Tell us your name and account number (if any).
(2) Describe the error or the transfer you are unsure about, and
explain as clearly as you can why you believe it is an error or why you
need more information.
(3) Tell us the dollar amount of the suspected error.
We will investigate your complaint and will correct any error
promptly. If we take more than 10 business days to do this, we will
credit your account 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.
A--4--MODEL FORM FOR SERVICE-PROVIDING INSTITUTIONS
(§ 205.14(b)(1)(ii))
ALL QUESTIONS ABOUT TRANSACTIONS MADE WITH YOUR (NAME OF CARD) CARD
MUST BE DIRECTED TO US (NAME OF SERVICE PROVIDER), AND NOT TO THE BANK
OR OTHER FINANCIAL INSTITUTION WHERE YOU HAVE YOUR ACCOUNT. We are
responsible for the [name of service] service and for resolving any
errors in transactions made with your [name of card] card.
We will not send you a periodic statement listing transactions that
you make using your [name of card] card. The transactions will appear
only on the statement issued by your bank or other financial
institution. SAVE THE RECEIPTS YOU ARE GIVEN WHEN YOU USE YOUR [NAME
OF CARD] CARD, AND CHECK THEM AGAINST THE ACCOUNT STATEMENT YOU
RECEIVE FROM YOUR BANK OR OTHER FINANCIAL INSTITUTION. 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].
IF YOUR [NAME OF CARD] CARD IS LOST OR STOLEN, NOTIFY US AT ONCE
by calling or writing to us at [telephone number and address].
A--5--MODEL FORMS FOR GOVERNMENT AGENCIES
(§ 205.15(d)(1) and (2))
(a) Disclosure by government agencies of information about
obtaining account balances and account histories § 205.15(d)(1)(i)
and (ii).
You may obtain information about the amount of benefits you have
remaining by calling [telephone number]. That information is also
available [on the receipt you get when you make a transfer with your
card at (an ATM) (a POS terminal)] [when you make a balance inquiry
at an ATM] [when you make a balance inquiry at specified locations].
You also have the right to receive a written summary of transactions
for the 60 days preceding your request by calling [telephone number].
[Optional: Or you may request the summary by contacting your
caseworker.]
(b) Disclosure of error resolution procedures for
government agencies that do not provide periodic statements
(§ 205.15(d)(1)(iii) and (d)(2)).
In Case of Errors or Questions About Your Electronic Transfers
Telephone us at [telephone number] Write us at [insert address]
[or E-mail us at [insert electronic mail address]] as soon as you
can, if you think an error has occurred in your [EBT] [agency's name
for program] account. We must hear from you no later than 60 days
after you learn of the error. You will need to tell us:
Your name and [case] [file] number.
Why you believe there is an error, and the dollar amount involved.
Approximately when the error took place.
If you tell us orally, we may require that you send us your complaint
or question in writing within 10 business days.
We will determine whether an error occurred within 10 business days
after we hear from you and will correct any error promptly. If we need
more time, however, we may take up
{{10-31-06 p.7382}}to 45 days to
investigate your complaint or 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. 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.
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. For new accounts, we may take
up to 20 business days to credit your account for the amount you think
is in error.
We will tell you the results within three business days after
completing our investigation. If we decide that there was no error, we
will send you a written explanation. You may ask for copies of the
documents that we used in our investigation.
If you need more information about our error resolution procedures,
call us at [telephone number] [the telephone number shown above].
A6 Model Clauses for Authorizing One-Time Electronic Fund
Transfers Using Information From a Check (§ 205.3(b)(2))
(a)Notice About Electronic Check Conversion
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.
(b)Alternative Notice About Electronic Check Conversion
(Optional)
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. In certain circumstances, such as for technical or
processing reasons, we may process your payment as a check transaction.
[Specify other circumstances (at payee's
option).]
(c)Notice For Providing Additional Information About
Electronic Check Conversion.
When we use information from your check to make an electronic fund
transfer, funds may be withdrawn from your account as soon as the same
day [you make] [we receive] your payment [, and you will not
receive your check back from your financial institution].
A7Model Clauses for Financial Institutions Offering Payroll
Card Accounts (§ 205(18)(c))
(a) Disclosure by financial institutions of information about
obtaining account information for payroll card accounts.
§ 205.18(c)(1).
You may obtain information about the amount of money you have
remaining in your payroll card account by calling [telephone number].
This information, along with a 60-day history of account transactions,
is also available on-line at [Internet address].
You also have the right to obtain a 60-day written history of
account transactions by calling [telephone number], or by writing us
at [address].
(b) Disclosure of error-resolution procedures for financial
institutions that provide alternative means of obtaining payroll card
account information (§ 205.18(c)(1)(ii) and (c)(2)).
In Case of Errors or Questions About Your Payroll Card Account
Telephone us at [telephone number] or Write us at [address] [or
E-mail us at [electronic mail address]] as soon as you can, if you
think an error has occurred in your payroll card account. 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. You may request a written history of your
transactions at any time by calling us at [telephone number] or
writing us at [address]. You will need to tell us:
Your name and [payroll card account] number.
Why you believe there is an error, and the dollar amount involved.
Approximately when the error took place.
If you tell us orally, we may require that you send us your
complaint or question in writing within 10 business days.
{{10-31-07 p.7382.01}}
We will determine whether an error occurred within 10 business days
after we hear from you and will correct any error promptly. If we need
more time, however, we may take up to 45 days to investigate your
complaint or 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 money during the time it takes us to complete
our investigation. 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.
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. For new accounts, we may take
up to 20 business days to credit your account for the amount you think
is in error.
We will tell you the results within three business days after
completing our investigation. If we decide that there was no error, we
will send you a written explanation.
You may ask for copies of the documents that we used in our
investigation.
If you need more information about our error-resolution procedures,
call us at [telephone number] [the telephone number shown above]
[[or visit [Internet address]]].
A8 MODEL CLAUSE FOR ELECTRONIC COLLECTION OF RETURNED ITEM
FEES (§ 205.3(b)(3))
If your payment is returned unpaid, you authorize [us/ name of
person collecting the fee electronically] to make a one-time
electronic fund transfer from your account to collect a fee of
[$ _______ ]. [If your payment is returned unpaid, you
authorize [us/ name of person collecting the fee electronically] to
make a one-time electronic fund transfer from your account to collect a
fee. The fee will be determined [by]/ [as follows]:
[ _______ ].]
[Codified to 12 C.F.R. Part 205, Appendix A]
[Appendix A amended at 44 Fed. Reg. 59473, October 15, 1979; 45
Fed. Reg. 8267, February 6, 1980, effective May 10, 1980; 52 Fed. Reg.
30912, August 18, 1987, effective November 15, 1987; 59 Fed. Reg.
10683, March 7, 1994, effective February 28, 1994; 61 Fed. Reg. 19676,
May 2, 1996; 63 Fed. Reg. 52118, September 29, 1998, effective
September 24, 1998; 66 Fed. Reg. 13412, March 6, 2001, effective March
9, 2001, however, compliance date is delayed until October 1, 2001; 66
Fed. Reg. 17793, April 4, 2001, effective March 30, 2001; 71 Fed. Reg.
1659, January 10, 2006, effective February 9, 2006; 71 Fed. Reg. 1482,
January 10, 2006, effective July 1, 2007; 71 Fed. Reg. 5140, August 30,
2006, effective July 1, 2007; 71 Fed. Reg. 69437, December 1, 2006,
effective January 1, 2007]
Appendix B to Part 205Federal Enforcement Agencies
The following list indicates which Federal agency enforces
Regulation E (12 CFR part 205) for particular classes of institutions.
Any questions concerning compliance by a particular institution should
be directed to the appropriate enforcing agency. Terms that are not
defined in the Federal Deposit Insurance Act
(12 U.S.C. 1813(s)) shall have
the meaning given to them in the International Banking Act of 1978
(12 U.S.C. 3101).
National banks, and Federal branches and Federal agencies of
foreign banks
District office of the Office of the Comptroller of the Currency
where the institution is located.
State member banks, branches and agencies of foreign banks
(other than Federal branches, Federal agencies, and insured state
branches of foreign banks), commercial lending companies owned or
controlled by foreign banks, and organizations operating under section
25 or 25(a) of the Federal Reserve Act
Federal Reserve Bank serving the District in which the institution
is located.
Nonmember insured banks and insured state branches of
foreign banks
Federal Deposit Insurance Corporation regional director for the
region in which the institution is located.
{{10-31-07 p.7382.02}}
Savings institutions insured under the Savings Association
Insurance Fund of the FDIC and federally-chartered savings banks
insured under the Bank Insurance Fund of the FDIC (but not including
state-chartered savings banks insured under the Bank Insurance
Fund)
Office of Thrift Supervision Regional Director for the region in
which the institution is located.
Federal Credit Unions
Division of Consumer Affairs, National Credit Union Administration,
1775 Duke Street, Alexandria, Virginia 22314--3428
Air Carriers
Assistant General Counsel for Aviation Enforcement and Proceedings,
Department of Transportation, 400 Seventh Street, S.W., Washington,
D.C. 20590.
Brokers and Dealers
Division of Market Regulation, Securities and Exchange Commission,
Washington, D.C. 20549.
Retailers, Consumer Finance Companies, Certain Other
Financial Institutions, and all others not covered above
Federal Trade Commission, Electronic Fund Transfers, Washington,
D.C. 20580.
[Codified to 12 C.F.R. Part 205, Appendix B]
[Appendix B amended at 50 Fed. Reg. 8708, March 5, 1985,
effective March 4, 1985; 57 Fed. Reg. 20400, May 13, 1992; 61 Fed. Reg.
19677, May 2, 1996]
Appendix C to Part 205Issuance of Staff Interpretations
Official Staff Interpretations
Pursuant to section 915(d) of the act, the Board has designated the
director and other officials of the Division of Consumer and Community
Affairs as officials "duly authorized" to issue, at their
discretion, official staff interpretations of this part. Except in
unusual circumstances, such interpretations will not be issued
separately but will be incorporated in an official commentary to this
part, which will be amended periodically.
Requests for Issuance of Official Staff Interpretations
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. The request shall contain a complete statement of all
relevant facts concerning the issue, including copies of all pertinent
documents.
Scope of Interpretations
No staff interpretations will be issued approving financial
institutions' forms or statements. This restriction does not apply to
forms or statements whose use is required or sanctioned by a government
agency.
[Codified to 12 C.F.R. Part 205, Appendix C]
[Appendix C added at 61 Fed. Reg. 19678, May 2, 1996]
[The page following this is 7389.]
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