REG E - Electronic Funds Transfer (Institutions)

Pt. 1005, App. A

12 CFR Ch. X (1–1–19 Edition)

(d)(1)(i)(A) of this section generally
must be disclosed in close proximity to
the other information required by
paragraph (d)(1)(i)(B) of this section.
(4) Accuracy. Any disclosure required
by paragraph (d)(1) of this section must
be accurate as of the date the
preauthorized remittance transfer to
which it pertains is made.
[76 FR 81023, Dec. 27, 2011, as amended at 77
FR 50284, Aug. 20, 2012]

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APPENDIX A TO PART 1005—MODEL
DISCLOSURE CLAUSES AND FORMS
A–1—Model Clauses for Unsolicited Issuance
(§ 1005.5(b)(2))
A–2—Model Clauses for Initial Disclosures
(§ 1005.7(b))
A–3—Model Forms for Error Resolution Notice (§§ 1005.7(b)(10) and 1005.8(b))
A–4—Model Form for Service-Providing Institutions (§ 1005.14(b)(1)(ii))
A–5—Model Forms for Government Agencies
(§ 1005.15(d)(1) and (2))
A–6—Model Clauses for Authorizing OneTime Electronic Fund Transfers Using
Information From a Check (§ 1005.3(b)(2))
A–7—Model Clauses for Financial Institutions Offering Payroll Card Accounts
(§ 1005.18(c))
A–8—Model Clause for Electronic Collection
of Returned Item Fees (§ 1005.3(b)(3))
A–9—Model Consent Form for Overdraft
Services (§ 1005.17)
A–10 through A–30 [Reserved]
A–30(a)—Model Form for Pre-Payment Disclosures for Remittance Transfers Exchanged into Local Currency including a
disclaimer where non-covered third-party
fees and foreign taxes may apply
(§ 1005.31(b)(1))
A–30(b) —Model Form for Pre-Payment Disclosures for Remittance Transfers Exchanged into Local Currency including a
disclaimer with estimate for non-covered
third-party
fees
(§ 1005.31(b)(1)
and
§ 1005.32(b)(3))
A–30(c)—Model Form for Pre-Payment Disclosures for Remittance Transfers Exchanged into Local Currency including a
disclaimer with estimate for foreign taxes
(§ 1005.31(b)(1) and § 1005.32(b)(3))
A–30(d)—Model Form for Pre-Payment Disclosures for Remittance Transfers Exchanged into Local Currency, including a
disclaimer with estimates for non-covered
third-party
fees
and
foreign
taxes
(§ 1005.31(b)(1) and § 1005.32(b)(3))
A–31—Model Form for Receipts for Remittance Transfers Exchanged into Local Currency (§ 1005.31(b)(2))

A–32—Model Form for Combined Disclosures
for Remittance Transfers Exchanged into
Local Currency (§ 1005.31(b)(3))
A–34—Model Form for Receipts for Dollar-toDollar
Remittance
Transfers
(§ 1005.31(b)(2))
A–35—Model Form for Combined Disclosures
for Dollar-to-Dollar Remittance Transfers
(§ 1005.31(b)(3))
A–36—Model Form for Error Resolution and
Cancellation
Disclosures
(Long)
(§ 1005.31(b)(4))
A–37—Model Form for Error Resolution and
Cancellation
Disclosures
(Short)
(§ 1005.31(b)(2)(iv) and (b)(2)(vi))
A–39—Model Form for Receipts for Remittance Transfers Exchanged into Local Currency—Spanish (§ 1005.31(b)(2))
A–40—Model Form for Combined Disclosures
for Remittance Transfers Exchanged into
Local Currency—Spanish (§ 1005.31(b)(3))
A–41—Model Form for Error Resolution and
Cancellation Disclosures (Long)—Spanish
(§ 1005.31(b)(4))
A–1—MODEL CLAUSES FOR UNSOLICITED
ISSUANCE (§ 1005.5(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 (§ 1005.7(b))
(a) Consumer Liability (§ 1005.7(b)(1)).
(Tell us 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 of
your [card] [code], you can lose no more than
$50 if someone used your [card][code] without
your permission.)
If you do NOT tell us 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

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Bur. of Consumer Financial Protection

Pt. 1005, App. A

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
(§ 1005.7(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 (§ 1005.7(b)(3)). For purposes of these disclosures, our business days
are (Monday through Friday) (Monday
through Saturday) (any day including Saturdays and Sundays). Holidays are (not) included.
(d)
Transfer
types
and
limitations
(§ 1005.7(b)(4)) (1) Account access. You may use
your [card][code] to:
(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 (§ 1005.7(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 (§ 1005.7(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 (§ 1005.7(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.
(h) Preauthorized payments (§ 1005.7(b) (6), (7)
and (8); § 1005.10(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:

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12 CFR Ch. X (1–1–19 Edition)

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
(§ 1005.7(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 (§ 1005.7(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).

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A–3—MODEL FORMS FOR ERROR RESOLUTION
NOTICE (§§ 1005.7(b)(10) AND 1005.8(b))
(a) Initial and annual error resolution notice
(§§ 1005.7(b)(10) and 1005.8(b)).
In Case of Errors or Questions About Your
Electronic Transfers Telephone us at [insert
telephone number] Write us at [insert address] [or email us at [insert email 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, pointof-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.
(b) Error resolution notice on periodic statements (§ 1005.8(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

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Bur. of Consumer Financial Protection

Pt. 1005, App. A

use of the money during the time it takes us
to complete our investigation.
A–4—MODEL FORM FOR SERVICE-PROVIDING
INSTITUTIONS (§ 1005.14(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].

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A–5—MODEL FORMS FOR GOVERNMENT
AGENCIES (§ 1005.15(d)(1) AND (2))
(a) Disclosure by government agencies of information about obtaining account balances and
account histories (§ 1005.15(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 (§ 1005.15(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 email us at [insert email 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 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, pointof-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].
A–6—MODEL CLAUSES FOR AUTHORIZING ONETIME ELECTRONIC FUND TRANSFERS USING
INFORMATION FROM A CHECK (§ 1005.3(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

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12 CFR Ch. X (1–1–19 Edition)

soon as the same day [you make] [we receive] your payment[, and you will not receive your check back from your financial
institution].
A–7—MODEL CLAUSES FOR FINANCIAL INSTITUTIONS OFFERING PAYROLL CARD ACCOUNTS
(§ 1005.18(c))

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(a) Disclosure by financial institutions of information about obtaining account information
for payroll card accounts. § 1005.18(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 online 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 (§ 1005.18(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
email us at [email 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.

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, pointof-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]].
A–8—MODEL CLAUSE FOR ELECTRONIC COLLECTION
OF
RETURNED
ITEM
FEES
(§ 1005.3(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 [$llll]. [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]:

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A–10 THROUGH A–29 [RESERVED]

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A–30(a)—Model Form for Pre-Payment Disclosures for Remittance Transfers Exchanged into
Local Currency (§ 1005.31(b)(1))

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A–30(b)—Model Form for Pre-Payment Disclosures for Remittance Transfers Exchanged into
Local Currency (§ 1005.31(b)(1))

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A–30(c)—Model Form for Pre-Payment Disclosures for Remittance Transfers Exchanged into
Local Currency (§ 1005.31(b)(1))

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A–30(d)—Model Form for Pre-Payment Disclosures for Remittance Transfers Exchanged into
Local Currency (§ 1005.31(b)(1))

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A–31—Model Form for Receipts for Remittance Transfers Exchanged into Local Currency
(§ 1005.31(b)(2))

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A–32—Model Form for Combined Disclosures for Remittance Transfers Exchanged into Local
Currency (§ 1005.31(b)(3))

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A–33—Model Form for Pre-Payment Disclosures for Dollar-to-Dollar Remittance Transfers
(§ 1005.31(b)(1))

Bur. of Consumer Financial Protection

Pt. 1005, App. A

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A–34—Model Form for Receipts for Dollar-to-Dollar Remittance Transfers (§ 1005.31(b)(2))

Pt. 1005, App. A

12 CFR Ch. X (1–1–19 Edition)

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A–35—Model Form for Combined Disclosures for Dollar-to-Dollar Remittance Transfers
(§ 1005.31(b)(3))

Bur. of Consumer Financial Protection

Pt. 1005, App. A

A–36—Model Form for Error Resolution and Cancellation Disclosures (Long) (§ 1005.31(b)(4))

A–37—Model Form for Error Resolution and
Cancellation Disclosures (Short)
(§ 1005.31(b)(2)(iv) and (b)(2)(vi))

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You have a right to dispute errors in your
transaction. If you think there is an error,
contact us within 180 days at [insert telephone number] or [insert website]. You can
also contact us for a written explanation of
your rights.

You can cancel for a full refund within 30
minutes of payment, unless the funds have
been picked up or deposited.
For questions or complaints about [insert
name of remittance transfer provider], contact:
State
Regulatory
Agency,
800–111–2222,
www.stateregulatoryagency.gov
Consumer Financial Protection Bureau, 855–
411–2372,
855–729–2372
(TTY/TDD),
www.consumerfinance.gov

Pt. 1005, App. A

12 CFR Ch. X (1–1–19 Edition)

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A–38—Model Form for Pre-Payment Disclosures for Remittance Transfers Exchanged into
Local Currency—Spanish (§ 1005.31(b)(1))

Bur. of Consumer Financial Protection

Pt. 1005, App. A

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A–39—Model Form for Receipts for Remittance Transfers Exchanged into Local Currency—
Spanish (§ 1005.31(b)(2))

12 CFR Ch. X (1–1–19 Edition)

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Pt. 1005, App. A

Bur. of Consumer Financial Protection

Pt. 1005, App. A

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A–40—Model Form for Combined Disclosures for Remittance Transfers Exchanged into Local
Currency—Spanish (§ 1005.31(b)(3))

Pt. 1005, App. A, Nts.

12 CFR Ch. X (1–1–19 Edition)

A–41—Model Form for Error Resolution and Cancellation Disclosures (Long)—Spanish
(§ 1005.31(b)(4))

EFFECTIVE DATE NOTES: 1. At 81 FR 84338,
Nov. 22, 2016, appendix A to part 1005 was
amended by:
a. In the table of contents:
i. The entries for A–5 and A–7 were revised.
ii. Entries for A–10(a) through A–10(f) were
added.

iii. The entry for reserved A–10 through A–
30 was revised to A–11 through A–29.
b. Model Clauses A–5 and A–7 were revised.
c. Model Forms A–10(a) through (f) were
added.
d. Model Forms A–11 through A–29 were reserved, effective Oct. 1, 2017. At 82 FR 18975,
Apr. 25, 2017, the effective date was delayed

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[76 FR 81023, Dec. 27, 2011, as amended at 77 FR 6290, Feb. 7, 2012; 77 FR 40459, July 10, 2012;
78 FR 30705, May 22, 2013; 79 FR 55991, Sept. 18, 2014; 81 FR 70320, Oct. 12, 2016]

Bur. of Consumer Financial Protection

Pt. 1005, App. A, Nts.

to Apr. 1, 2018. At 83 FR 6364, Feb. 13, 2018,
the effective date was further delayed to
Apr. 1, 2019.
For the convenience of the user, the added
and revised text is set forth as follows:

APPENDIX A TO PART 1005—MODEL
DISCLOSURE CLAUSES AND FORMS
TABLE OF CONTENTS

*

*

*

*

*

A–5—Model Clauses for Government Agencies (§ 1005.15(e)(1) and (2))

*

*

*

*

*

A–7—Model Clauses for Financial Institutions
Offering
Prepaid
Accounts
(§ 1005.18(d) and (e)(3))

*

*

*

*

*

A–10(a)—Model Form for Short Form Disclosures for Government Benefit Accounts
(§§ 1005.15(c) and 1005.18(b)(2), (3), (6), and
(7))
A–10(b)—Model Form for Short Form Disclosures
for
Payroll
Card
Accounts
(§ 1005.18(b)(2), (3), (6), and (7))
A–10(c)—Model Form for Short Form Disclosures for Prepaid Accounts, Example 1
(§ 1005.18(b)(2), (3), (6), and (7))
A–10(d)—Model Form for Short Form Disclosures for Prepaid Accounts, Example 2
(§ 1005.18(b)(2), (3), (6), and (7))
A–10(e)—Model Form for Short Form Disclosures for Prepaid Accounts with Multiple
Service Plans (§ 1005.18(b)(2), (3), (6), and
(7))
A–10(f)—Sample Form for Long Form Disclosures for Prepaid Accounts (§ 1005.18(b)(4),
(6), and (7))
A–11 through A–29 [Reserved]

*

*

*

*

*

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A–5—MODEL CLAUSES FOR GOVERNMENT
AGENCIES (§ 1005.15(E)(1) AND (2))
(a) Disclosure by government agencies of
information about obtaining account information for government benefit accounts
(§ 1005.15(e)(1)(i)).
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]. This information, along with a 12month history of account transactions, is
also available online at [Internet address].

You also have the right to obtain at least
24 months of written history of account
transactions by calling [telephone number],
or by writing to us at [address]. You will not
be charged a fee for this information unless
you request it more than once per month.
[Optional: Or you may request a written history of account transactions by contacting
your caseworker.]
(b) Disclosure of error resolution procedures for government agencies that do not
provide periodic statements (§ 1005.15(e)(1)(ii)
and (e)(2)).
In Case of Errors or Questions About Your
Electronic Transfers Telephone us at [telephone number] Write us at [address] [or
email us at [email address]] as soon as you
can, if you think an error has occurred in
your [agency’s name for program] 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] [optional: or by contacting your caseworker].
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 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, pointof-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.

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Pt. 1005, App. A, Nts.

12 CFR Ch. X (1–1–19 Edition)

If you need more information about our
error resolution procedures, call us at [telephone number][the telephone number shown
above].

*

*

*

*

*

A–7—MODEL CLAUSES FOR FINANCIAL INSTITUTIONS
OFFERING
PREPAID
ACCOUNTS
(§ 1005.18(D) AND (E)(3))

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(a) Disclosure by financial institutions of
information about obtaining account information
for
prepaid
accounts
(§ 1005.18(d)(1)(i)).
You may obtain information about the
amount of money you have remaining in
your prepaid account by calling [telephone
number]. This information, along with a 12month history of account transactions, is
also available online at [Internet address].
[For accounts that are or can be registered:] [If your account is registered with
us,] You also have the right to obtain at
least 24 months of written history of account
transactions by calling [telephone number],
or by writing us at [address]. You will not be
charged a fee for this information unless you
request it more than once per month.
(b) Disclosure of error-resolution procedures for financial institutions that do not
provide periodic statements (§ 1005.18(d)(1)(ii)
and (d)(2)).
In Case of Errors or Questions About Your
Prepaid Account Telephone us at [telephone
number] or Write us at [address] [or email us
at [email address]] as soon as you can, if you
think an error has occurred in your prepaid
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 [prepaid 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.
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,
[and your account is registered with us,] 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. [Keep reading to learn more
about how to register your card.]
For errors involving new accounts, pointof-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]].
(c) Warning regarding unregistered prepaid
accounts (§ 1005.18(e)(3)).
It is important to register your prepaid account as soon as possible. Unless you register your account, we may not credit your
account in the amount you think is in error
until we complete our investigation. To register your account, go to [Internet address]
or call us at [telephone number]. We will ask
you for identifying information about yourself (including your full name, address, date
of birth, and [Social Security Number] [government-issued identification number]), so
that we can verify your identity.

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Pt. 1005, App. A, Nts.

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12 CFR Ch. X (1–1–19 Edition)

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ER22NO16.008

Pt. 1005, App. A, Nts.

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12 CFR Ch. X (1–1–19 Edition)

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Pt. 1005, App. A, Nts.

Bur. of Consumer Financial Protection

Pt. 1005, App. A, Nts.

*

*

*

*

2. At 83 FR 6419, Feb. 13, 2018, appendix A
to part 1005 was amended by revising Model
Clause A–7, effective Apr. 1, 2019. For the

*

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A–11 through A–29 [Reserved]

Pt. 1005, App. C

12 CFR Ch. X (1–1–19 Edition)

convenience of the user, the revised text is
set forth as follows:

APPENDIX A TO PART 1005—MODEL
DISCLOSURE CLAUSES AND FORMS
*

*

*

*

*

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A–7—Model Clauses for Financial Institutions
Offering
Prepaid
Accounts
(§ 1005.18(d) and (e)(3))
(a) Disclosure by financial institutions of information about obtaining account information
for prepaid accounts (§ 1005.18(d)(1)(i)).
You may obtain information about the
amount of money you have remaining in
your prepaid account by calling [telephone
number]. This information, along with a 12month history of account transactions, is
also available online at [internet address].
[For accounts that are or can be registered:] [If your account is registered with
us,] You also have the right to obtain at
least 24 months of written history of account
transactions by calling [telephone number],
or by writing us at [address]. You will not be
charged a fee for this information unless you
request it more than once per month.
(b) Disclosure of error-resolution procedures
for financial institutions that do not provide
periodic statements (§ 1005.18(d)(1)(ii) and
(d)(2)).
In Case of Errors or Questions About Your
Prepaid Account Telephone us at [telephone
number] or Write us at [address] [or email us
at [email address]] as soon as you can, if you
think an error has occurred in your prepaid
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 [prepaid 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.
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,
[and your account is registered with us,] 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. [Keep reading to learn more
about how to register your card.]
For errors involving new accounts, pointof-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]].
(c) Warning regarding unverified prepaid accounts (§ 1005.18(e)(3)).
It is important to register your prepaid account as soon as possible. Until you register
your account and we verify your identity, we
are not required to research or resolve any
errors regarding your account. To register
your account, go to [internet address] or call
us at [telephone number]. We will ask you
for identifying information about yourself
(including your full name, address, date of
birth, and [Social Security Number] [government-issued identification number]), so that
we can verify your identity.

*

*

*

*

APPENDIX B TO PART 1005 [RESERVED]
APPENDIX C TO PART 1005—ISSUANCE OF
OFFICIAL INTERPRETATIONS
OFFICIAL INTERPRETATIONS
Pursuant to section 916(d) of the Act, the
Bureau has designated the Associate Director and other officials of the Division of Research, Markets, and Regulations as officials
‘‘duly authorized’’ to issue, at their discretion, official 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
INTERPRETATIONS
A request for an official interpretation
shall be in writing and addressed to the Bureau of Consumer Financial Protection, 1700
G Street NW., Washington, DC 20006. The request shall contain a complete statement of
all relevant facts concerning the issue, including copies of all pertinent documents.

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Bur. of Consumer Financial Protection

Pt. 1005, Supp. I

SCOPE OF INTERPRETATIONS
No 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.

SUPPLEMENT I TO PART 1005—OFFICIAL
INTERPRETATIONS
SECTION 1005.2

DEFINITIONS

2(a) Access Device
1. Examples. The term ‘‘access device’’ includes debit cards, personal identification
numbers (PINs), telephone transfer and telephone bill payment codes, and other means
that may be used by a consumer to initiate
an electronic fund transfer (EFT) to or from
a consumer account. The term does not include magnetic tape or other devices used internally by a financial institution to initiate
electronic transfers.
2. Checks used to capture information. The
term ‘‘access device’’ does not include a
check or draft used to capture the Magnetic
Ink Character Recognition (MICR) encoding
to initiate a one-time automated clearinghouse (ACH) debit. For example, if a consumer authorizes a one-time ACH debit from
the consumer’s account using a blank, partially completed, or fully completed and
signed check for the merchant to capture the
routing, account, and serial numbers to initiate the debit, the check is not an access device. (Although the check is not an access
device under Regulation E, the transaction
is nonetheless covered by the regulation. See
comment 3(b)(1)–1.v.)

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2(b) Account
1. Consumer asset account. The term ‘‘consumer asset account’’ includes:
i. Club accounts, such as vacation clubs. In
many cases, however, these accounts are exempt from the regulation under § 1005.3(c)(5)
because all electronic transfers to or from
the account have been preauthorized by the
consumer and involve another account of the
consumer at the same institution.
ii. A retail repurchase agreement (repo),
which is a loan made to a financial institution by a consumer that is collateralized by
government or government-insured securities.
2. Certain employment-related cards not covered. The term ‘‘payroll card account’’ does
not include a card used solely to disburse incentive-based payments (other than commissions which can represent the primary means
through which a consumer is paid), such as
bonuses, which are unlikely to be a consumer’s primary source of salary or other
compensation. The term also does not include a card used solely to make disbursements unrelated to compensation, such as

petty cash reimbursements or travel per
diem payments. Similarly, a payroll card account does not include a card that is used in
isolated instances to which an employer
typically does not make recurring payments,
such as when providing final payments or in
emergency situations when other payment
methods are unavailable. However, all transactions involving the transfer of funds to or
from a payroll card account are covered by
the regulation, even if a particular transaction involves payment of a bonus, other incentive-based payment, or reimbursement,
or the transaction does not represent a
transfer of wages, salary, or other employee
compensation.
3. Examples of accounts not covered by
Regulation E (12 CFR part 1005) include:
i. Profit-sharing and pension accounts established under a trust agreement, which are
exempt under § 1005.2(b)(2).
ii. Escrow accounts, such as those established to ensure payment of items such as
real estate taxes, insurance premiums, or
completion of repairs or improvements.
iii. Accounts for accumulating funds to
purchase U.S. savings bonds.
Paragraph 2(b)(2)
1. Bona fide trust agreements. The term
‘‘bona fide trust agreement’’ is not defined
by the Act or regulation; therefore, financial
institutions must look to state or other applicable law for interpretation.
2. Custodial agreements. An account held
under a custodial agreement that qualifies as
a trust under the Internal Revenue Code,
such as an individual retirement account, is
considered to be held under a trust agreement for purposes of Regulation E.
2(d) Business Day
1. Duration. A business day includes the entire 24-hour period ending at midnight, and a
notice required by the regulation is effective
even if given outside normal business hours.
The regulation does not require, however,
that a financial institution make telephone
lines available on a 24-hour basis.
2. Substantially all business functions. Substantially all business functions include both
the public and the back-office operations of
the institution. For example, if the offices of
an institution are open on Saturdays for
handling some consumer transactions (such
as deposits, withdrawals, and other teller
transactions), but not for performing internal functions (such as investigating account
errors), then Saturday is not a business day
for that institution. In this case, Saturday
does not count toward the business-day
standard set by the regulation for reporting
lost or stolen access devices, resolving errors, etc.

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Pt. 1005, Supp. I

12 CFR Ch. X (1–1–19 Edition)

3. Short hours. A financial institution may
determine, at its election, whether an abbreviated day is a business day. For example, if
an institution engages in substantially all
business functions until noon on Saturdays
instead of its usual 3 p.m. closing, it may
consider Saturday a business day.
4. Telephone line. If a financial institution
makes a telephone line available on Sundays
for reporting the loss or theft of an access
device, but performs no other business functions, Sunday is not a business day under the
substantially all business functions standard.
2(h) Electronic Terminal
1. Point-of-sale (POS) payments initiated by
telephone. Because the term ‘‘electronic terminal’’ excludes a telephone operated by a
consumer, a financial institution need not
provide a terminal receipt when:
i. A consumer uses a debit card at a public
telephone to pay for the call.
ii. A consumer initiates a transfer by a
means analogous in function to a telephone,
such as by home banking equipment or a facsimile machine.
2. POS terminals. A POS terminal that captures data electronically, for debiting or
crediting to a consumer’s asset account, is
an electronic terminal for purposes of Regulation E even if no access device is used to
initiate the transaction. See § 1005.9 for receipt requirements.
3. Teller-operated terminals. A terminal or
other computer equipment operated by an
employee of a financial institution is not an
electronic terminal for purposes of the regulation. However, transfers initiated at such
terminals by means of a consumer’s access
device (using the consumer’s PIN, for example) are EFTs and are subject to other requirements of the regulation. If an access device is used only for identification purposes
or for determining the account balance, the
transfers are not EFTs for purposes of the
regulation.

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2(k) Preauthorized Electronic Fund Transfer
1. Advance authorization. A preauthorized
electronic fund transfer under Regulation E
is one authorized by the consumer in advance of a transfer that will take place on a
recurring basis, at substantially regular intervals, and will require no further action by
the consumer to initiate the transfer. In a
bill-payment system, for example, if the consumer authorizes a financial institution to
make monthly payments to a payee by
means of EFTs, and the payments take place
without further action by the consumer, the
payments are preauthorized EFTs. In contrast, if the consumer must take action each
month to initiate a payment (such as by entering instructions on a touch-tone tele-

phone or home computer), the payments are
not preauthorized EFTs.
2(m) Unauthorized Electronic Fund Transfer
1. Transfer by institution’s employee. A consumer has no liability for erroneous or fraudulent transfers initiated by an employee of a
financial institution.
2. Authority. If a consumer furnishes an access device and grants authority to make
transfers to a person (such as a family member or co-worker) who exceeds the authority
given, the consumer is fully liable for the
transfers unless the consumer has notified
the financial institution that transfers by
that person are no longer authorized.
3. Access device obtained through robbery or
fraud. An unauthorized EFT includes a
transfer initiated by a person who obtained
the access device from the consumer through
fraud or robbery.
4. Forced initiation. An EFT at an ATM is
an unauthorized transfer if the consumer has
been induced by force to initiate the transfer.
5. Reversal of direct deposits. The reversal of
a direct deposit made in error is not an unauthorized EFT when it involves:
i. A credit made to the wrong consumer’s
account;
ii. A duplicate credit made to a consumer’s
account; or
iii. A credit in the wrong amount (for example, when the amount credited to the consumer’s account differs from the amount in
the transmittal instructions).
SECTION 1005.3

COVERAGE

3(a) General
1. Accounts covered. The requirements of
the regulation apply only to an account for
which an agreement for EFT services to or
from the account has been entered into between:
i. The consumer and the financial institution (including an account for which an access device has been issued to the consumer,
for example);
ii. The consumer and a third party (for
preauthorized debits or credits, for example),
when the account-holding institution has received notice of the agreement and the fund
transfers have begun.
2. Automated clearing house (ACH) membership. The fact that membership in an ACH
requires a financial institution to accept
EFTs to accounts at the institution does not
make every account of that institution subject to the regulation.
3. Foreign applicability. Regulation E applies to all persons (including branches and
other offices of foreign banks located in the
United States) that offer EFT services to
residents of any state, including resident
aliens. It covers any account located in the

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Bur. of Consumer Financial Protection

Pt. 1005, Supp. I

United States through which EFTs are offered to a resident of a state. This is the case
whether or not a particular transfer takes
place in the United States and whether or
not the financial institution is chartered in
the United States or a foreign country. The
regulation does not apply to a foreign branch
of a U.S. bank unless the EFT services are
offered in connection with an account in a
state as defined in § 1005.2(l).
3(b) Electronic Fund Transfer

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3(b)(1) Definition
1. Fund transfers covered. The term ‘‘electronic fund transfer’’ includes:
i. A deposit made at an ATM or other electronic terminal (including a deposit in cash
or by check) provided a specific agreement
exists between the financial institution and
the consumer for EFTs to or from the account to which the deposit is made.
ii. A transfer sent via ACH. For example,
social security benefits under the U.S. Treasury’s direct-deposit program are covered,
even if the listing of payees and payment
amounts reaches the account-holding institution by means of a computer printout from
a correspondent bank.
iii. A preauthorized transfer credited or
debited to an account in accordance with instructions contained on magnetic tape, even
if the financial institution holding the account sends or receives a composite check.
iv. A transfer from the consumer’s account
resulting from a debit-card transaction at a
merchant location, even if no electronic terminal is involved at the time of the transaction, if the consumer’s asset account is
subsequently debited for the amount of the
transfer.
v. A transfer via ACH where a consumer
has provided a check to enable the merchant
or other payee to capture the routing, account, and serial numbers to initiate the
transfer, whether the check is blank, partially completed, or fully completed and
signed; whether the check is presented at
POS or is mailed to a merchant or other
payee or lockbox and later converted to an
EFT; or whether the check is retained by the
consumer, the merchant or other payee, or
the payee’s financial institution.
vi. A payment made by a bill payer under
a bill-payment service available to a consumer via computer or other electronic
means, unless the terms of the bill-payment
service explicitly state that all payments, or
all payments to a particular payee or payees,
will be solely by check, draft, or similar
paper instrument drawn on the consumer’s
account, and the payee or payees that will be
paid in this manner are identified to the consumer.
2. Fund transfers not covered. The term
‘‘electronic fund transfer’’ does not include:

i. A payment that does not debit or credit
a consumer asset account, such as a payroll
allotment to a creditor to repay a credit extension (which is deducted from salary).
ii. A payment made in currency by a consumer to another person at an electronic terminal.
iii. A preauthorized check drawn by the financial institution on the consumer’s account (such as an interest or other recurring
payment to the consumer or another party),
even if the check is computer-generated.
iv. Transactions arising from the electronic collection, presentment, or return of
checks through the check collection system,
such as through transmission of electronic
check images.
3(b)(2) Electronic Fund Transfer Using
Information From a Check
1. Notice at POS not furnished due to inadvertent error. If the copy of the notice under
section 1005.3(b)(2)(ii) for electronic check
conversion (ECK) transactions is not provided to the consumer at POS because of a
bona fide unintentional error, such as when
a terminal printing mechanism jams, no violation results if the payee maintains procedures reasonably adapted to avoid such occurrences.
2. Authorization to process a transaction as
an EFT or as a check. In order to process a
transaction as an EFT, or alternatively as a
check, the payee must obtain the consumer’s
authorization to do so. A payee may, at its
option, specify the circumstances under
which a check may not be converted to an
EFT. See model clauses in appendix A–6.
3. Notice for each transfer. Generally, a notice to authorize an electronic check conversion transaction must be provided for each
transaction. For example, a consumer must
receive a notice that the transaction will be
processed as an EFT for each transaction at
POS or each time a consumer mails a check
in an accounts receivable (ARC) transaction
to pay a bill, such as a utility bill, if the
payee intends to convert a check received as
payment. Similarly, the consumer must receive notice if the payee intends to collect a
service fee for insufficient or uncollected
funds via an EFT for each transaction
whether at POS or if the consumer mails a
check to pay a bill. The notice about when
funds may be debited from a consumer’s account and the non-return of consumer
checks by the consumer’s financial institution must also be provided for each transaction. However, if in an ARC transaction, a
payee provides a coupon book to a consumer,
for example, for mortgage loan payments,
and the payment dates and amounts are set
out in the coupon book, the payee may provide a single notice on the coupon book stating all of the required disclosures under
paragraph (b)(2) of this section in order to
obtain authorization for each conversion of a

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