The Electronic Fund Transfer Act
(EFTA), 15 U.S.C. 1693 et seq., requires accurate disclosure of the
costs, terms, and rights relating to electronic fund transfer (EFT)
services and remittance transfer services to consumers. Entities
offering EFT services must provide consumers with full and accurate
information regarding consumers' rights and responsibilities in
connection with EFT services. These disclosures are intended to
protect the rights of consumers using EFT services, such as
automated teller machine (ATM) transfers, telephone bill-payment
services, point-of-sale transfers at retail establishments,
electronic check conversion, payroll cards, and preauthorized
transfers from or to a consumer's account. EFTA also establishes
error resolution procedures and limits consumer liability for
unauthorized transfers in connection with EFT services. EFTA and
Regulation E impose disclosure and other requirements on issuers
and sellers of gift cards, gift certificates, and general-use
prepaid cards. Further, EFTA and Regulation E provide protections
for consumers in the United States who send remittance transfers to
persons in a foreign country. On November 22, 2016, the Bureau
published a final rule that amends Regulations E, Regulation Z,
which implements the Truth in Lending Act, and the official
interpretations to the regulations, to provide comprehensive
protections for consumers who use “prepaid accounts.” In addition,
it modifies general Regulation E requirements to create tailored
provisions governing disclosures, limited liability and error
resolution, and periodic statements, and adds new requirements
regarding the posting of account agreements. Additionally, the
final rule amends Regulations E and Z to regulate overdraft credit
features offered in connection with prepaid accounts. Federal
agencies and private litigants use the records to ascertain whether
accurate and complete disclosures of EFT services and other
services covered under Regulation E have been provided and other
required actions (for example, error resolution and limitation of
consumer liability for unauthorized transfers) have been taken.
This information will provide the primary evidence of law
violations in EFTA enforcement actions brought by the CFPB and
other Federal agencies. Without recordkeeping requirements of
Regulation E, the Federal agencies' ability to enforce the EFTA
would be significantly impaired. Consumers rely on the disclosures
required by EFTA and Regulation E to facilitate informed EFT, gift
card, and remittance transfer decision making. Without this
information, consumers would be severely hindered in their ability
to assess the true costs and terms of the transactions offered.
Also, without the special error resolution and limitation of
consumer liability provisions, consumers would be unable to detect
and correct unauthorized transfers and errors in their EFT and
remittance transfer transactions. These disclosures and provisions
are also necessary for the agencies to enforce EFTA and Regulation
E.
US Code:
15
USC 1693 Name of Law: Electronic Funds Transfer Act
PL:
Pub.L. 111 - 203 X Name of Law: Wall Street Reform and Consumer
Protection Act
The changes to Regulation E,
imposed by this rule will result in 76,347 hours of one-time and
ongoing burden. However, the Bureau is also removing 652,817 hours
in one time burden imposed by previous rule changes that the Bureau
estimates have now been fully absorbed by the affected entities.
Therefore the Bureau is requesting a net burden reduction of
569,267 hours.
$0
No
No
No
No
Yes
No
No
Darrin King 202-693-4129
King.Darrin@dol.gov
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
3170-0014 (Reg E) Change Request (RIN 3170-AA96).docx
Techinical_Spec_Prepaids(RIN3170-AA87)_03062019.pdf
Regulation E Reporting, Recodkeeping and Disclosure requirements