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Electronic Fund Transfer Act
- Examination Procedures
- Examination Checklist

Regulation E

Electronic Fund Transfer Act

The Electronic Fund Transfer Act (EFTA) (15 U.S.C.

1693 et seq.) of 1978 is intended to protect

individual consumers engaging in electronic fund

transfers (EFTs) and remittance transfers. These

services include

• transfers through automated teller machines

(ATMs);

• point-of-sale (POS) terminals;

• automated clearinghouse (ACH) systems;

• telephone bill-payment plans in which periodic or

recurring transfers are contemplated;

• remote banking programs; and

• remittance transfers.

The EFTA is implemented through Regulation E,

which includes official interpretations.

In 2009, the Federal Reserve Board (Board)

amended Regulation E to prohibit institutions from

charging overdraft fees for ATM and one-time debit

card transactions, unless the consumer opts in or

affirmatively consents to the institution’s overdraft

services (74 Fed. Reg. 59033 (Nov. 17, 2009) and

75 Fed. Reg. 31665 (June 4, 2010)). The Board

also amended Regulation E to restrict fees and

expiration dates on gift cards and to require that

gift card terms be stated clearly (75 Fed. Reg.

16580 (April 1, 2010)).

The Dodd−Frank Wall Street Reform and Con-

sumer Protection Act (Dodd−Frank Act) transferred

rulemaking authority under the EFTA from the

Board of Governors of the Federal Reserve System

to the Consumer Financial Protection Bureau

(CFPB).

The Dodd−Frank Act also amended the

EFTA and created a new system of consumer

protections for remittance transfers sent by con-

sumers in the United States to individuals and

businesses in foreign countries. In December

2011, the CFPB restated the Board’s implementing

Regulation E at 12 CFR Part 1005 (76 Fed. Reg.

81020) (December 27, 2011). In February 2012, the

CFPB added subpart B (Requirements for Remit-

tance Transfers) to Regulation E to implement the

new remittance protections set forth in the Dodd−

Frank Act (77 Fed. Reg. 6194) (February 7, 2012),

effective on February 7, 2013.

In July 2012, the

CFPB amended the February 2012 rule to effect

certain technical corrections primarily related to

formatting of the model forms in the rule. In August

2012, the CFPB again amended the February 2012

rule to modify the definition of ‘‘remittance transfer

provider.’’ The August amendment also revised

several aspects of the rule regarding remittance

transfers that are scheduled before the date of

transfer, including preauthorized remittance trans-

fers (77 Fed. Reg. 50244) (August 20, 2012). In

January 2013, the rule’s February 21, 2013,

effective date was delayed pending finalization of a

proposal to address three specific issues in the

rule. In May 2013, the CFPB finalized the proposal,

which modified the disclosure requirements for

certain fees and foreign taxes, revised some

aspects of the error resolution requirements, and

established a new effective date of October 28,

2013 (78 Fed. Reg. 30661) (May 22, 2013).

Information in this narrative is provided for

subpart A and subpart B in the order listed below.

Note that the order, particularly as it relates to

subpart A, does not strictly follow the order of the

regulatory text. For ease of use by the examiner,

however, the examination procedures and check-

list follow the order of the regulation.

Subpart A

I. Scope and Key Definitions (12 CFR 1005.2,

1005.3, 1005.17, 1005.20)

II. Disclosures (12 CFR 1005.4, 1005.7, 1005.8,

1005.16, 1005.17, 1005.20)

III. Electronic Transaction Overdraft Service Opt

In (12 CFR 1005.17)

IV. Issuance of Access Devices (12 CFR 1005.5,

1005.18)

V. Consumer Liability and Error Resolution (12

CFR 1005.6, 1005.11)

VI. Receipts and Periodic Statements (12 CFR

1005.9, 1005.18)

VII. Gift Cards (12 CFR 1005.20)

1. The Board also implemented a legislative extension of time

for complying with the gift card disclosure requirements until

January 31, 2011. 75 Fed. Reg. 50683 (August 17, 2010).

2. Dodd−Frank Act §§1002(12)(C), 1024(b)-(c), and 1025(b)-

(c); 12 U.S.C. §§5481(12)(C), 5514(b)-(c), and 5515(b)-(c).

Section 1029 of the Dodd−Frank Act generally excludes from this

transfer of authority, subject to certain exceptions, any rulemaking

authority over a motor vehicle dealer that is predominantly

engaged in the sale and servicing of motor vehicles, the leasing

and servicing of motor vehicles, or both. The transfer of authority

also did not include section 920 of EFTA, which concerns debit

card interchange fees charged to merchants. Section 920 of EFTA

is implemented by Board regulations at 12 CFR Part 235. Section

920 is not addressed here or in the accompanying examination

procedures and checklist.

3. The agency responsible for supervising and enforcing

compliance with Regulation E will depend on the person subject

to the EFTA (e.g., for financial institutions, jurisdiction will depend

on the size and charter of the institution).

4. The amendment designated 12 CFR 1005.1 through 1005.20

as subpart A.

Consumer Compliance Handbook Reg. E • 1 (11/13)

VIII. Other Requirements (12 CFR 1005.10,

1005.14, 1005.15)

IX. Relation to Other Laws (12 CFR 1005.12)

Subpart B

Requirements for remittance transfers

X. Remittance Transfer Definitions (12 CFR

1005.30)

XI. Disclosures (12 CFR 1005.31)

XII. Estimates (12 CFR 1005.32)

XIII. Procedures for Resolving Errors (12 CFR

1005.33)

XIV. Procedures for Cancellation and Refund of

Remittance Transfers (12 CFR 1005.34)

XV. Acts of Agents (12 CFR 1005.35)

XVI. Transfers Scheduled Before the Date of

Transfer (12 CFR 1005.36)

Sections Applicable to Both

Subpart A and Subpart B

XVII. Preemption

XVIII. Administrative Enforcement and Record Re-

tention (12 CFR 1005.13)

XIX. Miscellaneous (EFTA provisions not reflected

in Regulation E)

SUBPART A

I. Scope

Key Definitions—12 CFR 1005.2

Access device is a card, code, or other means of

access to a consumer’s account or a combination

of these used by the consumer to initiate EFTs.

Access devices include debit cards, personal

identification numbers (PINs), telephone transfer

and telephone bill payment codes, and other

means to initiate an EFT to or from a consumer

account (12 CFR 1005.2(a)(1) and 12 CFR Part

1005, Supp. I, Comment 2(a)-1).

Access devices do not include either of the

following:

• magnetic tape or other devices used internally by

a financial institution to initiate electronic trans-

fers

• a check or draft used to capture the MICR

(Magnetic Ink Character Recognition) encoding

or routing, account, and serial numbers to initiate

a one-time ACH debit (Comments 2(a)-1 and

2(a)-2)

Accepted access device is an access device

that a consumer

• requests and receives, signs, or uses (or autho-

rizes another to use) to transfer money between

accounts or to obtain money, property, or

services

• requests to be validated even if it was issued on

an unsolicited basis

• receives as a renewal or substitute for an

accepted access device from either the financial

institution that initially issued the device or a

successor (12 CFR 1005.2(a)(2))

Account includes the following:

• checking, savings, or other consumer asset

accounts held by a financial institution (directly or

indirectly), including certain club accounts, es-

tablished primarily for personal, family, or house-

hold purposes

•payroll card account, established through an

employer (directly or indirectly), to which EFTs of

the consumer’s wages, salary, or other employee

compensation (such as commissions), are made

on a recurring basis. The payroll card account

can be operated or managed by the employer, a

third-party processor, a depository institution, or

any other person. All transactions involving the

transfer of funds to or from a payroll card account

are covered by the regulation (12 CFR 1005.2

(b)(2) and Comment 2(b)-2).

An account does not include:

• an account held by a financial institution under a

bona fide trust agreement

• an occasional or incidental credit balance in a

credit plan

• profit-sharing and pension accounts established

under a bona fide trust agreement

• escrow accounts such as for payments of real

estate taxes, insurance premiums, or completion

of repairs

• accounts for purchasing U.S. savings bonds (12

CFR 1005.2(b)(3) and Comment 2(b)-3)

Apayroll card account does not include a card

used

• solely to disburse incentive-based payments

(other than commissions when they represent the

primary means through which a consumer is

paid) that are unlikely to be a consumer’s primary

source of salary or other compensation;

• solely to make disbursements unrelated to com-

pensation, such as petty cash reimbursements or

travel per diem payments; or

• in isolated instances to which an employer

typically does not make recurring payments

Electronic Fund Transfer Act

2 (11/13) • Reg. E Consumer Compliance Handbook

(Comment 2(b)-2).

Activity means any action that results in an

increase or decrease of the funds underlying a

certificate or card, other than the imposition of a

fee, or an adjustment due to an error or a reversal

of a prior transaction (12 CFR 1005.20(a)(7)).

ATM operator is any person that operates an

ATM at which a consumer initiates an EFT or a

balance inquiry and that does not hold the account

to or from which the transfer is made or about which

the inquiry is made (12 CFR 1005.16(a)).

Dormancy fee and inactivity fee mean a fee for

non-use of or inactivity on a gift certificate, store gift

card, or general-use prepaid card (12 CFR 1005.20

(a)(5)).

Electronic check conversion (ECK) transactions

are transactions 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 (12 CFR 1005.3(b)(2))

Electronic fund transfer (EFT) is a transfer of

funds initiated through an electronic terminal,

telephone, computer (including online banking) or

magnetic tape for the purpose of ordering, instruct-

ing, or authorizing a financial institution to debit or

credit a consumer’s account. EFTs include, but are

not limited to, point-of-sale (POS) transfers; auto-

mated teller machine (ATM) transfers; direct depos-

its or withdrawals of funds; transfers initiated by

telephone; and transfers resulting from debit card

transactions, whether or not initiated through an

electronic terminal (12 CFR 1005.3(b)).

Electronic terminal is an electronic device, other

than a telephone call by a consumer, through

which a consumer may initiate an EFT. The term

includes, but is not limited to, point-of-sale termi-

nals, automated teller machines, and cash-

dispensing machines (12 CFR 1005.2(h)).

Exclusions from gift card definition. The following

cards, codes, or other devices are excluded and

not subject to the substantive restrictions on

imposing dormancy, inactivity, or service fees, or

on expiration dates if they are (12 CFR 1005.20(b))

• usable solely for telephone services;

• reloadable and not marketed or labeled as a gift

card or gift certificate. For purposes of this

exception, the term ‘‘reloadable’’ includes a

temporary non-reloadable card issued solely in

connection with a reloadable card, code, or other

device;

• a loyalty, award, or promotional gift card (except

that these must disclose on the card or device

itself, information such as the date the funds

expire, fee information and a toll-free number) (12

CFR 1005.20(a)(4) and (c)(4));

• not marketed to the general public;

• issued in paper form only; or

• redeemable solely for admission to events or

venues at a particular location or group of

affiliated locations, or to obtain goods or services

in conjunction with admission to such events or

venues, at the event or venue or at specific

locations affiliated with and in geographic prox-

imity to the event or venue.

General-use prepaid card is a card, code, or

other device

• issued on a prepaid basis primarily for personal,

family, or household purposes to a consumer in a

specified amount, whether or not that amount

may be increased or reloaded, in exchange for

payment; and

• that is redeemable upon presentation at multiple,

unaffiliated merchants for goods or services, or

that may be usable at automated teller machines

(12 CFR 1005.20(a)(3)). See ‘‘Exclusions from gift

card definition.’’

Gift certificate is a card, code, or other device

issued on a prepaid basis primarily for personal,

family, or household purposes to a consumer in a

specified amount that may not be increased or

reloaded in exchange for payment and redeem-

able upon presentation at a single merchant or an

affiliated group of merchants for goods or services

(12 CFR 1005.20(a)(1)). See ‘‘Exclusions from gift

card definition.’’

Loyalty, award, or promotional gift card is a card,

code, or other device (1) issued on a prepaid basis

primarily for personal, family, or household pur-

poses to a consumer in connection with a loyalty,

award, or promotional program; (2) that is redeem-

able upon presentation at one or more merchants

for goods or services, or usable at automated teller

machines; and (3) that sets forth certain disclo-

sures, including a statement indicating that the

card, code, or other device is issued for loyalty,

award, or promotional purposes (12 CFR 1005.20

(a)(4)). See ‘‘Exclusions from gift card definition.’’

Overdraft services. A financial institution pro-

vides an overdraft service if it assesses a fee or

charge for paying a transaction (including a check

or other item) when the consumer has insufficient or

unavailable funds in the account to pay the

transaction. However, an overdraft service does

not include payments made from the following:

• a line of credit subject to Regulation Z, such as a

credit card account, a home equity line of credit,

or an overdraft line of credit;

• funds transferred from another account held

individually or jointly by the consumer; or

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 3 (11/13)

• a line of credit or other transaction from a

securities or commodities account held by a

broker–dealer registered with the Securities and

Exchange Commission (SEC) or the Commodity

Futures Trading Commission (CFTC). (12 CFR

1005.17(a)).

Preauthorized electronic fund transfer is an EFT

authorized in advance to recur at substantially

regular intervals (12 CFR 1005.2(k)).

Service fee means a periodic fee for holding or

use of a gift certificate, store gift card, or general-

use prepaid card. A periodic fee includes any fee

that may be imposed on a gift certificate, store gift

card, or general-use prepaid card from time to time

for holding or using the certificate or card (12 CFR

1005.20(a)(6)). For example, a service fee may

include a monthly maintenance fee, a transaction

fee, an ATM fee, a reload fee, a foreign currency

transaction fee, or a balance inquiry fee, whether or

not the fee is waived for a certain period of time or

is only imposed after a certain period of time.

However, a service fee does not include a one-time

fee or a fee that is unlikely to be imposed more than

once while the underlying funds are still valid, such

as an initial issuance fee, a cash-out fee, a

supplemental card fee, or a lost or stolen certificate

or card replacement fee (Comment 20(a)(6)-1).

State means any state, territory, or possession of

the United States; the District of Columbia; the

Commonwealth of Puerto Rico; or any of their

political subdivisions (12 CFR 1005.2(l)).

Store gift card is a card, code, or other device

issued on a prepaid basis primarily for personal,

family, or household purposes to a consumer in a

specified amount, whether or not that amount may

be increased or reloaded, in exchange for pay-

ment, and redeemable upon presentation at a

single merchant or an affiliated group of merchants

for goods or services (12 CFR 1005.20(a)(2)). See

‘‘Exclusions from gift card definition.’’

Unauthorized electronic fund transfer is an EFT

from a consumer’s account initiated by a person

other than the consumer without authority to initiate

the transfer and from which the consumer receives

no benefit. This does not include an EFT initiated in

any of the following ways:

• by a person who was furnished the access

device to the consumer’s account by the con-

sumer, unless the consumer has notified the

financial institution that transfers by that person

are no longer authorized;

• with fraudulent intent by the consumer or any

person acting in concert with the consumer; or

• by the financial institution or its employee (12

CFR 1005.2(m)).

Coverage—12 CFR 1005.3

Subpart A of Regulation E applies to any electronic

fund transfer (EFT) that authorizes a financial

institution to debit or credit a consumer’s account.

The requirements of subpart A of Regulation E

apply only to accounts for which there is an

agreement for EFT services to or from the account

between (i) the consumer and the financial institu-

tion or (ii) the consumer and a third party, when the

account-holding financial institution has received

notice of the agreement and the fund transfers

have begun (Comment 3(a)-1).

Regulation E applies to all persons, including

offices of foreign financial institutions in the United

States, that offer EFT services to residents of any

state, and it covers any account located in the

United States through which EFTs are offered to a

resident of a state, no matter where a particular

transfer occurs or where the financial institution is

chartered (Comment 3(a)-3). Regulation E does not

apply to a foreign branch of a U.S. financial

institution unless the EFT services are offered in

connection with an account in a state, as defined in

12 CFR 1005.2(l) (Comment 3(a)-3).

Exclusions from Coverage

12 CFR 1005.3(c) describes transfers that are not

EFTs and are therefore not covered by the EFTA

and Regulation E:

• transfers of funds originated by check, draft, or

similar paper instrument;

• check guarantee or authorization services that do

not directly result in a debit or credit to a

consumer’s account;

• any transfer of funds for a consumer within a

system that is used primarily to transfer funds

between financial institutions or businesses, e.g.,

Fedwire or other similar network;

• any transfer of funds that has as its primary

purpose the purchase or sale of securities or

commodities regulated by the SEC or the CFTC,

purchased or sold through a broker−dealer

regulated by the SEC or through a futures

commission merchant regulated by the CFTC, or

held in book-entry form by a Federal Reserve

Bank or federal agency;

• intra-institutional automatic transfers under an

agreement between a consumer and a financial

institution;

• transfers initiated by telephone between a con-

sumer and a financial institution provided the

transfer is not a function of a written plan

contemplating periodic or recurring transfers. A

written statement available to the public, such as

Electronic Fund Transfer Act

4 (11/13) • Reg. E Consumer Compliance Handbook

a brochure, that describes a service allowing a

consumer to initiate transfers by telephone con-

stitutes a written plan; or

• preauthorized transfers to or from accounts at

financial institutions with assets of less than $100

million on the preceding December 31. Such

preauthorized transfers, however, remain subject

to the compulsory use prohibition under Section

913 of the EFTA and 12 CFR 1005.10(e), as well

as the civil and criminal liability provisions of

Sections 915 and 916 of the EFTA. A small

financial institution that provides EFT services

besides preauthorized transfers must comply

with the requirements of subpart A for those other

services (Comment 3(c)(7)-1). For example, a

small financial institution that offers ATM services

must comply with subpart A in regard to the

issuance of debit cards, terminal receipts, peri-

odic statements, and other requirements.

Electronic Check Conversion (ECK) and

Collection of Returned-Item Fees

Subpart A covers electronic check conversion

(ECK) transactions. In an ECK transaction, a

consumer provides a check to a payee and

information from the check is used to initiate a

one-time EFT from the consumer’s account. Al-

though transfers originated by checks are not

covered by subpart A, an ECK is treated as an EFT

and not a payment originated by check. Payees

must obtain the consumer’s authorization for each

ECK transaction. A consumer authorizes a one-

time EFT for an ECK transaction when the con-

sumer receives notice that the transaction will or

may be processed as an EFT and goes forward

with the underlying transaction

(12 CFR 1005.3(b)

(2)(i) and (ii) and Comment 3(b)(2)-3).

If a payee re-presents electronically a check

that has been returned unpaid, the transaction is

not an EFT, and subpart A does not apply

because the transaction originated by check

(Comment 3(c)(1)-1).

However, subpart A applies to a fee collected

electronically from a consumer’s account for a

check or EFT returned unpaid. A consumer autho-

rizes a one-time EFT from the consumer’s account

to pay the fee for the returned item or transfer if the

person collecting the fee provides notice to the

consumer stating the amount of the fee and that the

person may electronically collect the fee, and the

consumer goes forward with the underlying trans-

action

(12 CFR 1005.3(b)(3)). These authorization

requirements do not apply to fees imposed by the

account-holding financial institution for returning

the check or EFT or paying the amount of an

overdraft (Comment 3(b)(3)-1).

II. Disclosures

Disclosures Generally—12 CFR 1005.4

Required disclosures must be clear and readily

understandable, in writing, and in a form the

consumer may keep. The required disclosures may

be provided to the consumer in electronic form, if

the consumer affirmatively consents after receiving

a notice that complies with the E-Sign Act (12 CFR

1005.4(a)(1)).

Disclosures may be made in a language other

than English, if the disclosures are made available

in English upon the consumer’s request (12 CFR

1005.4(a)(2)).

A financial institution has the option of disclosing

additional information and combining disclosures

required by other laws (for example, Truth in

Lending disclosures) with Regulation E disclosures

(12 CFR 1005.4(b)).

A financial institution may combine required

disclosures into a single statement if a consumer

holds two or more accounts at the financial

institution. Thus, a single periodic statement or

error resolution notice is sufficient for multiple

accounts. In addition, it is only necessary for a

financial institution to provide one set of disclosures

for a joint account (12 CFR 1005.4(c)(l) and (2)).

Two or more financial institutions that jointly

provide EFT services may contract among them-

selves to meet the requirements that the regulation

imposes on any or all of them. When making initial

disclosures (see 12 CFR 1005.7) and disclosures

of a change in terms or an error resolution notice

(see 12 CFR 1005.8), a financial institution in a

shared system only needs to make disclosures that

are within its knowledge and apply to its relation-

ship with the consumer for whom it holds an

account (12 CFR 1005.4(d)).

Initial Disclosure of Terms and

Conditions—12 CFR 1005.7

Financial institutions must provide initial disclo-

sures of the terms and conditions of EFT services

before the first EFT is made or at the time the

consumer contracts for an EFT service. They must

give a summary of various consumer rights under

the regulation, including the consumer’s liability for

unauthorized EFTs, the types of EFTs the consumer

5. For POS transactions, the notice must be posted in a

prominent and conspicuous location and a copy of the notice

must be provided to the consumer at the time of the transaction

(12 CFR 1005.3(b)(2)(i) and (ii) and Comment 3(b)(2)-3).

6. For POS transactions, the notice must be posted in a

prominent and conspicuous location and a copy of the notice

must either be provided to the consumer at the time of the

transaction or mailed to the consumer’s address as soon as

reasonably practicable after the person initiates the EFT to collect

the fee (12 CFR 1005.3(b)(3)).

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 5 (11/13)

may make, limits on the frequency or dollar amount,

fees charged by the financial institution, and the

error-resolution procedures. Appendix A to Part

1005 provides model clauses that financial institu-

tions may use to provide the disclosures.

Timing of disclosures. Financial institutions must

make the required disclosures 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 (12 CFR

1005.7(a)).

Disclosures given by a financial institution earlier

than the regulation requires (for example, when the

consumer opens a checking account) need not be

repeated when the consumer later authorizes an

electronic check conversion or agrees with a third

party to initiate preauthorized transfers to or from

the consumer’s account, unless the terms and

conditions differ from the previously disclosed

term. This interpretation also applies to any notice

provided about one-time EFTs from a consumer’s

account initiated using information from the con-

sumer’s check. On the other hand, if an agreement

for EFT services to be provided by an account-

holding financial institution is directly between the

consumer and the account-holding financial insti-

tution, disclosures must be given in close proximity

to the event requiring disclosure, for example,

when the consumer contracts for a new service

(Comment 7(a)-1).

Where a consumer authorizes a third party to

debit or credit the consumer’s account, an account-

holding financial institution that has not received

advance notice of the transfer or transfers must

provide the required disclosures as soon as

reasonably possible after the first debit or credit is

made, unless the financial institution has previously

given the disclosures (Comment 7(a)-2).

If a consumer opens a new account permitting

EFTs at a financial institution, and the consumer

has already received subpart A disclosures for

another account at that financial institution, the

financial institution need only disclose terms and

conditions that differ from those previously given

(Comment 7(a)-3).

If a financial institution joins an interchange or

shared network system (which provides access to

terminals operated by other financial institutions),

disclosures are required for additional EFT services

not previously available to consumers if the terms

and conditions differ from those previously dis-

closed (Comment 7(a)-4).

A financial institution may provide disclosures

covering all EFT services that it offers, even if some

consumers have not arranged to use all services

(Comment 7(a)-5).

Addition of EFT services. A financial institution

must make disclosures for any new EFT service

added to a consumer’s account if the terms and

conditions are different from those described in the

initial disclosures. ECK transactions may be a new

type of transfer requiring new disclosures (See

Appendix A-2 and Comment 7(c)-1).

Content of disclosures. 12 CFR 1005.7(b) re-

quires a financial institution to provide the following

disclosures as they apply:

•Liability of consumers for unauthorized electronic

fund transfers. The financial institution must

include a summary of the consumer’s liability

(under 12 CFR 1005.6, state law, or other

applicable law or agreement) for unauthorized

transfers (12 CFR 1005.7(b)(1)). A financial

institution does not need to provide the liability

disclosures if it imposes no liability. If it later

decides to impose liability, it must first provide

the disclosures (Comment 7(b)(1)-1). The finan-

cial institution can choose to include advice on

promptly reporting unauthorized transfers or the

loss or theft of the access device (Comment

7(b)(1)-3).

•Telephone number and address. A financial

institution must provide a specific telephone

number and address, on or with the disclosure

statement, for reporting a lost or stolen access

device or a possible unauthorized transfer (Com-

ment 7(b)(2)-2). Except for the telephone number

and address for reporting a lost or stolen access

device or a possible unauthorized transfer, the

disclosure may insert a reference to a telephone

number that is readily available to the consumer,

such as ‘‘Call your branch office. The number is

shown on your periodic statement’’ (Comment

7(b)(2)-2).

•Business days. The financial institution’s busi-

ness days (12 CFR 1005.7(b)(3)).

•Types of transfers; limitations on frequency or

dollar amount. Limitations on the frequency and

dollar amount of transfers generally must be

disclosed in detail (12 CFR 1005.7(b)(4)). If the

confidentiality of certain details is essential to the

security of an account or system, these details

may be withheld (but the fact that limitations exist

must still be disclosed).

A limitation on account

activity that restricts the consumer’s ability to

make EFTs must be disclosed even if the

restriction also applies to transfers made by

7. For example, if a financial institution limits cash ATM

withdrawals to $100 per day, the financial institution may disclose

that daily withdrawal limitations apply and need not disclose that

the limitations may not always be in force (such as during periods

when its ATMs are off-line) (Comment 7(b)(4)-1).

Electronic Fund Transfer Act

6 (11/13) • Reg. E Consumer Compliance Handbook

non-electronic means.

Financial institutions are

not required to list preauthorized transfers among

the types of transfers that a consumer can make

(Comment 7(b)(4)-3). Financial institutions must

disclose the fact that one-time EFTs initiated

using information from a consumer’s check are

among the types of transfers that a consumer can

make (See Appendix A-2 and Comment 7(b)(4)-

4).

•Fees. A financial institution must disclose all fees

for EFTs or for the right to make EFTs (12 CFR

1005.7(b)(5)). Other fees, for example, minimum-

balance fees, stop-payment fees, account over-

drafts, or ATM inquiry fees, may, but need not, be

disclosed under Regulation E (see Regulation

DD, 12 CFR Part 1030) and (Comment 7(b)(5)-1).

A per-item fee for EFTs must be disclosed even if

the same fee is imposed on non-electronic

transfers. If a per-item fee is imposed only under

certain conditions, such as when the transactions

in the cycle exceed a certain number, those

conditions must be disclosed. Itemization of the

various fees may be on the disclosure statement

or on an accompanying document referenced in

the statement (Comment 7(b)(5)-2).

A financial institution must disclose that net-

works used to complete the EFT as well as an

ATM operator, may charge a fee for an EFT or for

balance inquiries (12 CFR 1005.7(b)(11)).

•Documentation. A summary of the consumer’s

right to receipts and periodic statements, as

provided in 12 CFR 1005.9, and notices regard-

ing preauthorized transfers as provided in 12

CFR 1005.10(a) and 1005.10(d) (12 CFR 1005.7

(b)(6)).

•Stop payment. A summary of the consumer’s

right to stop payment of a preauthorized elec-

tronic fund transfer and the procedure for placing

a stop-payment order, as provided in 12 CFR

1005.10(c) and 12 CFR 1005.7(b)(7).

•Liability of institution. A summary of the financial

institution’s liability to the consumer under Sec-

tion 910 of the EFTA for failure to make or to stop

certain transfers (12 CFR 1005.7(b)(8)).

•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 (12 CFR

1005.7(b)(9)). A financial institution must de-

scribe the circumstances under which any infor-

mation relating to an account to or from which

EFTs are permitted will be made available to third

parties, not just information concerning those

EFTs. Third parties include other subsidiaries of

the same holding company (Comment 7(b)(9)-1).

•Error resolution. The error-resolution notice must

be substantially similar to Model Form A-3 in

Appendix A of Part 1005. A financial institution

may use different wording so long as the

substance of the notice remains the same, may

delete inapplicable provisions (for example, the

requirement for written confirmation of an oral

notification), and may substitute substantive state

law requirements affording greater consumer

protection than Regulation E (Comment 7(b)(10)-

1). To take advantage of the longer time periods

for resolving errors under 12 CFR 1005.11(c)(3)

(for new accounts as defined in Regulation CC,

transfers initiated outside the United States, or

transfers resulting from POS debit card transac-

tions), a financial institution must have disclosed

these longer time periods. Similarly, a financial

institution relying on the exception from provi-

sional crediting in 12 CFR 1005.11(c)(2) for

accounts relating to extensions of credit by

securities brokers and dealers (Regulation T, 12

CFR Part 220) must disclose accordingly (Com-

ment 7(b)(10)-2).

•ATM fees. A notice that a fee may be imposed by

an automated teller machine operator as defined

in §1005.16(a), when the consumer initiates an

electronic fund transfer or makes a balance

inquiry, and by any network used to complete the

transaction.

Change in Terms; Error Resolution

Notice—12 CFR 1005.8

If a financial institution contemplates a change in

terms, it must mail or deliver a written or electronic

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 12 CFR 1005.7(b) if

the change would result in any of the following:

• increased fees or charges;

• increased liability for the consumer;

• fewer types of available EFTs; or

• stricter limitations on the frequency or dollar

amounts of transfers (12 CFR 1005.8(a)(1)).

If an immediate change in terms or conditions is

necessary to maintain or restore the security of an

EFT system or account, the financial institution

does not need to give prior notice. However, if the

change is to be permanent, the financial institution

must provide notice in writing of the change to the

consumer on or with the next regularly scheduled

periodic statement or within 30 days, unless

disclosures would jeopardize the security of the

8. For example, Regulation D (12 CFR 1004) restricts the

number of payments to third parties that may be made from a

money market deposit account; a financial institution that does not

execute fund transfers in excess of those limits must disclose the

restriction as a limitation on the frequency of EFTs (Comment

7(b)(4)-2).

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 7 (11/13)

system or account (12 CFR 1005.8(a)(2)).

For accounts to or from which EFTs can be

made, the financial institution must mail, deliver, or

provide electronically to the consumer at least once

each calendar year, the error resolution notice in 12

CFR 1005 Appendix A—Model Form A-3, or one

substantially similar. Alternatively, the financial

institution may include an abbreviated error reso-

lution notice substantially similar to the notice set

out in Appendix A (Model Form A-3) with each

periodic statement (12 CFR 1005.8(b)).

Disclosures at Automated Teller

Machines—12 CFR 1005.16

An ATM operator that charges a fee is required to

provide notice that a fee will be imposed and

disclose the amount of the fee. The notice must be

provided either by showing it on the screen of the

automated teller machine or on paper before the

consumer is committed to paying a fee (12 CFR

1005.16(b) and (c)).

The ‘‘clear and readily understandable standard’’

under 12 CFR 1005.4(a) applies to the content of

the notice. The requirement that the notice be in a

retainable format only applies to printed notices

(not those on the ATM screen).

The fee may be imposed by the ATM operator

only if: (1) the consumer is provided the required

notice, and (2) the consumer elects to continue the

transaction or inquiry after receiving such notice

(12 CFR 1005.16(d)).

These fee disclosures are not required where a

network owner is not charging a fee directly to the

consumer (i.e., some network owners charge an

interchange fee to financial institutions whose

customers use the network) (Comment 7(b)(5)-3). If

the network practices change such that the net-

work charges the consumer directly, these fee

disclosure requirements would apply to the net-

work (12 CFR 1005.7(c)).

Overdraft Service Disclosures—12 CFR

1005.17

Disclosure requirements for overdraft services are

addressed in Section III of this document.

Gift Card Disclosures—12 CFR

1005.20(c)

Disclosures must be clear and conspicuous and

generally in a written or electronic form (except for

certain pre-purchase disclosures, which may be

given orally) that the consumer may retain. The fees

and terms and conditions of expiration that are

required to be disclosed prior to purchase may not

be changed after purchase.

A number of disclosures must be made on the

actual card. Making such disclosures in an accom-

panying terms and conditions document, on pack-

aging surrounding a certificate or card, or on a

sticker or other label affixed to the certificate or

card does not constitute a disclosure on the

certificate or card. Those disclosures include the

following:

• the existence, amount, and frequency of any

dormancy, inactivity, or service fee;

• the expiration date for the underlying funds (or

the fact that the funds do not expire);

• a toll-free telephone number and (if any) a

website that the consumer may use to obtain a

replacement certificate or card if the certificate or

card expires while underlying funds are still

available;

• a statement that the certificate or card expires,

but the underlying funds do not expire or expire

later than the certificate or card, as well as a

statement that the consumer may contact the

issuer for a replacement card;

and

• a toll-free telephone number and (if any) a

website that the consumer may use to obtain

information about fees.

Additional disclosure requirements regarding fees.

In addition to the disclosure requirements related to

dormancy, inactivity, or service fees, all other fees

must be disclosed as well. These disclosures must

be provided on or with the certificate or card and

disclosed prior to purchase. The certificate or card

must also disclose a toll-free telephone number

and website, if one is maintained, that a consumer

may use to obtain fee information or replacement

certificates or cards (12 CFR 1005.20(f)).

Disclosure requirements for loyalty, award, or

promotional gift cards (12 CFR 1005.20(a)(4)). To

qualify for the exclusion for loyalty, award, or

promotional gift cards, the following must be

disclosed:

• a statement indicating that the card, code, or

other device is issued for loyalty, award, or

promotional purposes, which must be included

on the front of the card, code, or other device;

• the expiration date for the underlying funds,

which must be included on the front of the card,

code, or other device;

• the amount of any fees that may be imposed in

connection with the card, code, or other device,

and the conditions under which they may be

9. This requirement does not apply to non-reloadable certifi-

cates or cards that expire seven years or more after the date of

manufacture.

Electronic Fund Transfer Act

8 (11/13) • Reg. E Consumer Compliance Handbook

imposed, which must be provided on or with the

card, code, or other device; and

• a toll-free telephone number and, if one is

maintained, a website, that a consumer may use

to obtain fee information, which must be included

on the card, code, or other device.

Amendments to Regulation E were issued on

August 11, 2010. The amendments implemented

legislation that modified the effective date of certain

disclosure and card expiration requirements in the

gift card provisions of the Credit Card Accountabil-

ity Responsibility and Disclosure Act of 2009 for

cards produced prior to April 1, 2010.

The disclosures and card expiration require-

ments are

1. disclosures required to be made prior to pur-

chase (see 12 CFR 1005.20(c)(3));

2. disclosures that must be stated on the certificate

or card regarding the fees and expiration dates

(see 12 CFR 1005.20(d)(2), (e)(1) & (e)(3)); and

3. disclosures that may be provided on or with the

certificate or card (see 12 CFR 1005.20(f)).

Gift cards must comply with all other provisions

of the gift card rule.

Issuers must make the following disclosures on

in-store signs, messages during customer service

calls, websites, and general advertising:

• the funds underlying the gift card do not expire;

• consumers have the right to receive a free

replacement card, along with the packaging and

materials that typically accompany the gift card;

and

• the issuer will charge dormancy, inactivity, or

service fees only if the fee is permitted by the gift

card rule.

The issuer was required to make the disclosures

via customer service call center and website until

January 31, 2013. See 12 CFR 1005.20(h).

III. Electronic Transaction Overdraft

Services Opt-In—12 CFR 1005.17

In recent years overdraft protection services have

been extended to cover overdrafts resulting from

non-check transactions, including ATM withdraw-

als, debit card transactions at point of sale, online

transactions, preauthorized transfers, and ACH

transactions. Generally, institutions charge a flat

fee each time an overdraft is paid, although some

institutions have a tiered fee structure and charge

higher fees based on the amount of the negative

balance at the end of the day or as the number of

overdrafts increases. Institutions commonly charge

the same amount for paying check and ACH

overdrafts as they would if they returned the item

unpaid. Some institutions also impose a fee for

each day the account remains overdrawn. For

debit card overdrafts, the[a0]dollar amount of the

fee and multiple assessments can exceed the

dollar amount of the overdrafts.

In 2005, the agencies

issued guidance con-

cerning the marketing, disclosure, and implemen-

tation of overdraft programs. The guidance also

covers safety and soundness considerations, and

establishes a number of best practices financial

institutions should incorporate into their overdraft

programs. The 2009 revisions to Regulation E

supersede portions of the guidance related to ATM

and one-time debit card overdraft transactions.

However, in addition to the revised Regulation E

requirements, institutions should incorporate their

agency’s overdraft guidance into their overdraft

protection programs.

12 CFR 1005.17 was added in the 2009 revision

to Regulation E.

It provides consumers with a

choice to opt into their institution’s overdraft

protection program and be charged a fee for

overdrafts for ATM and one-time debit card trans-

actions. It also requires disclosure of the fees and

terms associated with the institution’s overdraft

service. Before an institution may assess overdraft

fees, the consumer must opt in, or affirmatively

consent, to the overdraft service for ATM and

one-time debit card transactions, and the con-

sumer has an ongoing right to revoke consent.

Institutions may not require an opt in for ATM and

one-time debit transactions as a condition to the

payment of overdrafts for checks and other trans-

actions. The account terms, conditions and fea-

tures must be the same for consumers who opt in

and for those who do not.

Opt-in requirement for overdraft services. The

financial institution may assess a fee for paying an

ATM or one-time debit card transaction pursuant to

an overdraft service only if it has met the following

requirements:

• the financial institution has provided the con-

sumer with a written (or, if the consumer agrees,

electronic) notice, segregated from all other

information, describing the overdraft service;

• the financial institution has provided a reason-

able opportunity for the consumer to affirmatively

consent (opt in) to the overdraft service for ATM

10. The Office of the Comptroller of the Currency, the Board of

Governors of the Federal Reserve System, the Federal Deposit

Insurance Corporation, and the National Credit Union Administra-

tion, collectively issued joint guidance concerning a service

offered by insured depository institutions commonly referred to as

‘‘bounced-check protection’’ or ‘‘overdraft protection.’’ This credit

service is sometimes offered on both consumer and small

business transaction accounts as an alternative to traditional

means of covering overdrafts. Joint Guidance on Overdraft

Protection Programs (February 18, 2005).

11. 74 Fed. Reg. 59033, Nov. 17, 2009; 75 Fed. Reg. 31665,

June 4, 2010.

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 9 (11/13)

and one-time debit card transactions;

• the financial institution has obtained the consum-

er’s affirmative consent (opt in) for ATM and

one-time debit card transactions; and

• the financial institution has mailed or delivered

written (or, if the consumer agrees, electronic)

confirmation of the consent, including a state-

ment informing the consumer of the right to

revoke consent. An institution complies if it

adopts reasonable procedures to ensure that it

assesses overdraft fees only for transactions

paid after mailing or delivering the confirmation to

the consumer (12 CFR 1005.17(b)(1); Comment

17(b)-7).

Fee prohibitions. As a general rule, an institution

may not charge overdraft fees for paying an ATM or

one-time debit card transaction unless the con-

sumer has opted in. The fee prohibition also

applies to an institution that has a policy and

practice of not paying an ATM or one-time debit

card overdraft when it reasonably believes at the

time of the authorization request that the consumer

does not have sufficient funds available to pay the

transaction, although the institution does not have

to comply with the notice and opt-in requirements

(Comment17(b)-1(iv)).

Lack of consent does not prohibit the financial

institution from paying ATM or one-time debit card

overdrafts. However, the financial institution may

charge a fee only if the consumer has consented to

the institution’s overdraft service for ATM and

one-time debit card transactions (Comment 17(b)-

2). Conversely, the financial institution is not

required to pay an ATM or one-time debit card

overdraft even if the consumer has consented to

pay a fee (Comment 17(b)-3).

For a consumer who has not opted in, if a fee or

charge is based on the amount of the outstanding

negative balance, an institution may not charge a

fee for a negative balance that is solely attributable

to an ATM or one-time debit card transaction.

However, an institution may assess a fee if the

negative balance is attributable in whole or in part

to a check, ACH transaction or other type of

transaction not subject to the prohibition on assess-

ing overdraft fees (Comment 17(b)-8).

For a consumer who has not opted in, the

institution may not assess daily or sustained

negative balance, overdraft, or similar fees for a

negative balance, based solely on ATM or one-time

debit card transactions. However, if the negative

balance is attributable in part to a check, ACH

transaction, or other type of transaction not subject

to the prohibition on assessing overdraft fees, the

institution may charge a daily or sustained over-

draft or similar fee, even if the consumer has not

opted in. The date the fee may be charged is

based on the date on which the check, ACH, or

other type of transaction is paid into overdraft

(Comment 17(b)-9).

Contents and format of notice. The notice

describing the overdraft service must be substan-

tially similar to Model Form A-9. The notice must

include all of the following items and may not

contain any other information not expressly speci-

fied or otherwise permitted:

• a brief description of the overdraft service and

the types of transactions for which the financial

institution may charge a fee;

• the dollar amount of any fee that may be charged

for an ATM or one-time debit card transaction,

including any daily or other overdraft fees;

• the maximum number of fees that may be

charged per day, or, if applicable, that there is no

limit;

• an explanation of the right to affirmatively consent

to the overdraft service, including the methods by

which the consumer may consent;

and

• the availability of a line of credit or a service that

transfers funds from another account to cover

overdrafts, if the financial institution offers those

alternatives

(12 CFR 1005.17(d)(1) through

(d)(5)).

The financial institution also may (but is not

required to) include the following information, to the

extent applicable:

• disclosure of the right to opt into, or out of, the

payment of overdrafts for other types of transac-

tions (e.g., checks, ACH transactions, or auto-

matic bill payments) and a means for the

consumer to exercise such choices;

• disclosure of the financial institution’s returned

item fee, as well as the fact that merchants may

charge additional fees; and

• disclosure of the right to revoke consent (12 CFR

1005.17(d)(6)).

Reasonable opportunity to consent. The financial

12. If the amount of the fee may vary based on the number of

times the consumer has overdrawn the account, the amount of the

overdraft, or other factors, the financial institution must disclose

the maximum fee.

13. Institutions may tailor the response portion of Model Form

A-9 to the methods offered. For example, a tear-off portion of

Model Form A-9 is not necessary if consumers may only opt in by

telephone or electronically (Comment 17(d)-3).

14. If the institution offers both a line of credit subject to

Regulation Z (12 CFR Part 1026) and a service that transfers funds

from another account of the consumer held at the institution to

cover overdrafts, the institution must state in its opt-in notice that

both alternative plans are offered. If the institution offers one, but

not the other, it must state in its opt-in notice the alternative plan

that it offers. If the institution does not offer either plan, it should

omit the reference to the alternative plans (Comment 17(d)-5). If

the financial institution offers additional alternatives for paying

overdrafts, it may (but is not required to) disclose those

alternatives (12 CFR 1005.17(d)(5)).

Electronic Fund Transfer Act

10 (11/13) • Reg. E Consumer Compliance Handbook

institution must provide a reasonable opportunity to

consent. Reasonable methods of consent include

mail, if the financial institution provides a form for

the consumer to fill out and mail; telephone, if the

financial institution provides a readily available

telephone line that the consumer may call; elec-

tronic means, if the financial institution provides a

form that can be accessed and processed at its

website, where the consumer may click on a box to

consent and click on a button to affirm consent; or

in person, if the financial institution provides a form

for the consumer to complete and present at a

branch or office (Comment 17(b)-4). The financial

institution may provide the opportunity to consent

and require the consumer to make a choice as a

step to opening an account (Comment 17(b)-5).

Affirmative consent is necessary. An important

feature of the opt in is that the consumer’s

affirmative consent is necessary before the institu-

tion may charge overdraft fees for paying an ATM

or one-time debit card transaction (12 CFR 1005.17

(b)(iii)). The consent must be separate from other

consents or acknowledgments (including a con-

sent to receive disclosures electronically). Check

boxes are allowed, but the check box and the

consumer’s signature may only apply to the

consumer’s consent to opt in. Preprinted disclo-

sures about the overdraft service provided with a

signature card or contract do not constitute affir-

mative consent (Comment 17(b)-6).

Confirmation and consumer’s right to revoke. Not

only must the consumer affirmatively consent, but

the institution must mail or deliver to the consumer

a written confirmation (or electronic, if the con-

sumer agrees) that the consumer has consented,

along with a statement informing the consumer of

the right to revoke the consent at any time (12 CFR

1005.17(b)(iv) and Comment 17(b)-7). An institu-

tion complies with the confirmation requirement if it

has adopted reasonable procedures to ensure that

overdraft fees are assessed only on transactions

paid after the confirmation is mailed or delivered to

the consumer (Comment 17(b)-7)).

Assessing fees. For consumers who have not

opted in, institutions are prohibited from charging

overdraft fees for paying those transactions. This

prohibition applies to daily or sustained overdraft,

negative balance, or similar fees. However, the rule

does not prohibit an institution from assessing

these fees if the negative balance is attributable, in

whole or part, to a check, ACH or other transaction

not subject to the fee prohibition. However, if the

negative balance is attributable in part to an ATM

transaction, for example, and in part to a check, a

fee may be assessed based on the date when the

check is paid into overdraft, not the date of the ATM

or one-time debit transaction.

Conditioning payment of other overdrafts. The

financial institution may not condition the payment

of other types of overdraft transactions on the

consumer’s affirmative consent, and the financial

institution may not decline to pay other types of

overdraft transactions because the consumer has

not affirmatively consented to the payment of ATM

and one-time debit card overdrafts (12 CFR

1005.17(b)(2)). In other words, the financial institu-

tion may not use different criteria for paying other

types of overdraft transactions for consumers who

have consented and for consumers who have not

consented (Comment 17(b)(2)-1).

Same account terms, conditions, and features. In

addition, the financial institution must provide to

consumers who do not affirmatively consent the

same account terms, conditions, and features

(except the payment of ATM and one-time debit

overdrafts) that are available to consumers who do

affirmatively consent (12 CFR 1005.17(b)(3)). That

requirement includes, but is not limited to

• interest rates paid;

• fees assessed;

• the type of ATM or debit card provided to the

depositor;

• minimum balance requirements; and

• online bill payment services (Comment

17(b)(3)-1).

Joint accounts. Any one account holder may

consent, or revoke consent, for payment of ATM or

one-time debit card transactions from a joint

account (12 CFR 1005.17(e)).

Continuing right to consent or revoke. A con-

sumer may consent to the payment of ATM and

one-time debit card overdrafts at any time. A

consumer may also revoke consent at any time.

The financial institution must implement a revoca-

tion as soon as reasonably practicable (12 CFR

1005.17(f)). The financial institution need not waive

overdraft fees assessed before it implements the

consumer’s revocation (Comment 17(f)-1).

Duration of consent. Consent remains effective

until the consumer revokes it, unless the financial

institution terminates the overdraft service (12 CFR

1005.17(g)). The financial institution may terminate

the overdraft service, for example, if the consumer

makes excessive use of the service (Comment

17(g)-1).

Effective date. The overdraft services rule be-

came effective on January 19, 2010, and compli-

ance became mandatory on July 1, 2010. For

accounts opened on or after July 1, 2010, the

15. For example, the financial institution may not provide a

PIN-only debit card to consumers who do not opt in and a debit

card with both PIN and signature-debit features to consumers who

do opt in.

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 11 (11/13)

financial institution must obtain consent before

charging a fee for payment of any ATM or one-time

debit overdraft. However, for accounts opened

before July 1, 2010, the financial institution may not

charge a fee for paying any ATM or one-time debit

overdraft on or after August 15, 2010, unless it has

obtained consent (See 12 CFR 1005.17(c)).

IV. Issuance of Access Devices—

12 CFR 1005.5 and 1005.18

In general, a financial institution may issue an

access device to a consumer only in the following

cases:

• the consumer requested it in writing or orally.

• it is a renewal of, or a substitute for, an accepted

access device (as defined in 12 CFR 1005.2(a)).

See 12 CFR 1005.5(a).

Only one renewal or substitute device may

replace a previously issued device. A financial

institution may provide additional devices at the

time it issues the renewal or substitute access

device provided the institution complies with the

requirements for issuing unsolicited access de-

vices for the additional devices (Comments 5(a)

(2)-1 and 5(b)-5).

A financial institution may issue an unsolicited

access device only if the access device meets all

of the following criteria. The access device is

• not validated—that is, it cannot be used to initiate

an EFT.

• accompanied by the explanation that it is not

validated and how the consumer may dispose of

it if the consumer does not wish to validate it.

• accompanied by a complete disclosure, in

accordance with 12 CFR 1005.7, of the consum-

er’s rights and liabilities that will apply if the

access device is validated.

• validated only upon oral or written request from

the consumer and after a verification of the

consumer’s identity by some reasonable means

(12 CFR 1005.5(b)).

The financial institution may use any reasonable

means of verifying the consumer’s identity, but the

consumer is not liable for any unauthorized trans-

fers if an imposter succeeds in validating the

access device (Comment 5(b)-4).

Payroll card access devices. Consistent with 12

CFR 1005.5(a), a financial institution may issue a

payroll card access device only in response to an

oral or written request for the device or as a renewal

or substitute for an accepted access device. A

consumer is deemed to request an access device

for a payroll account when the consumer chooses

to receive salary or other compensation through a

payroll card account (Comment 18(a)-1).

EFT added to credit card. The EFTA and

Regulation E apply when the capability to initiate

EFTs is added to an accepted credit card (as

defined under Regulation Z). The EFTA and

Regulation E also apply to the issuance of an

access device that permits credit extensions under

a preexisting agreement between the consumer

and a financial institution to extend credit only to

cover overdrafts (or to maintain a specified mini-

mum balance). The Truth in Lending Act and

Regulation Z govern the addition of a credit feature

to an accepted access device, and except as

discussed above, the issuance of a credit card that

is also an access device. For information on the

relationship of Regulation E to other laws, including

Truth in Lending, see 12 CFR 1005.12.

V. Consumer Liability and Error

Resolution

Liability of Consumers for Unauthorized

Transfers—12 CFR 1005.6

A consumer may be liable for an unauthorized EFT

(defined in 12 CFR 1005.2(m)) depending on when

the consumer notifies the financial institution and

whether an access device was used to conduct the

transaction. Under the EFTA, there is no bright-line

time limit within which consumers must report

unauthorized EFTs (71 Fed. Reg. 1638, 1653 (Jan.

10, 2006)).

The extent of the consumer’s liability is deter-

mined solely by the consumer’s promptness in

notifying the financial institution (Comment 6(b)-3).

Other factors may not be used as a basis to hold

consumers liable. 12 CFR 1005.6 expressly prohib-

its the following factors as the basis for imposing

greater liability than is permissible: the consumer

was negligent (e.g., wrote a PIN on an ATM card),

an agreement between the consumer and the

financial institution provides for greater liability, or

the consumer is liable for a greater amount under

state law (Comment 6(b)-2 and 6(b)-3).

A consumer may only be held liable for an

unauthorized transaction, within the limitations set

forth in 12 CFR 1005.6(b), if

• the financial institution has provided all of the

following written disclosures to the consumer:

– a summary of the consumer’s liability for

unauthorized EFTs

– the telephone number and address for report-

ing that an unauthorized EFT has been or may

be made

16. For a joint account, a financial institution may issue an

access device to each account holder for whom the requesting

holder specifically requests an access device (Comment

5(a)(1)-1).

Electronic Fund Transfer Act

12 (11/13) • Reg. E Consumer Compliance Handbook

– the financial institution’s business days

• any access device used to affect the EFT was an

accepted access device (as defined in 12 CFR

1005.2(a)).

• the financial institution has provided a means to

identify the consumer to whom the access device

was issued (12 CFR 1005.6(a)).

12 CFR 1005.6 allows, but does not require, the

financial institution to provide a separate means to

identify each consumer of a multiple-user account

(Comment 6(a)-2).

The limitations on the amount of consumer

liability for unauthorized EFTs, the time limits within

which consumers must report unauthorized EFTs,

and the liability for failing to adhere to those time

limits, are listed in the chart below. The financial

institution may impose less consumer liability than

is provided by 12 CFR 1005.6 based on state law or

the deposit agreement (12 CFR 1005.6(b)(6)).

Consumer Liability for Unauthorized Transfers

Event

Timing of Consumer Notice to

Financial Institution Maximum Liability

Loss or theft of access device

Within two business days after

learning of loss or theft

Lesser of $50 or total amount of

unauthorized transfers

Loss or theft of access device More than two business days

after learning of loss or theft up

to 60 calendar days after

transmittal of statement showing

first unauthorized transfer made

with access device

Lesser of $500 or the sum of:

(a) $50 or the total amount of

unauthorized transfers

occurring in the first two

business days, whichever is

less, and

(b) The amount of unauthorized

transfers occurring after two

business days and before

notice to the financial

institution.

Loss or theft of access device More than 60 calendar days after

transmittal of statement showing

first unauthorized transfer made

with access device

For transfers occurring within the

60-day period, the lesser of $500

or the sum of

(a) Lesser of $50 or the amount

of unauthorized transfers in

first two business days, and

(b) The amount of unauthorized

transfers occurring after two

business days.

For transfers occurring after the

60-day period, unlimited liability

(until the financial institution is

notified).

Unauthorized transfer(s) not

involving loss or theft of an

access device

Within 60 calendar days after

transmittal of the periodic

statement on which the

unauthorized transfer first

appears

No liability.

Unauthorized transfer(s) not

involving loss or theft of an

access device

More than 60 calendar days after

transmittal of the periodic

statement on which the

unauthorized transfer first

appears

Unlimited liability for

unauthorized transfers occurring

60 calendar days after the

periodic statement and before

notice to the financial institution.

1. Includes a personal identification number (PIN) if used

without a card in a telephone transaction, for example.

2. Provided the financial institution demonstrates that these

transfers would not have occurred had notice been given within

the two-business-day period.

3. Provided the financial institution demonstrates that these

transfers would not have occurred had notice been given within

the 60-day period.

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Consumer Compliance Handbook Reg. E • 13 (11/13)

Knowledge of loss or theft. The fact that a

consumer has received a periodic statement

reflecting an unauthorized transaction is a factor,

but not conclusive evidence, in determining whether

the consumer had knowledge of a loss or theft of

the access device (Comment 6(b)(1)-2).

Timing of notice. If a consumer’s delay in

notifying a financial institution was due to extenu-

ating circumstances, such as extended travel or

hospitalization, the time periods for notification

specified above must be extended to a reasonable

time (12 CFR 1005.6(b)(4); Comment 6(b)(4)-1).

Notice to the financial institution. A consumer

gives notice to a financial institution about unau-

thorized use when the consumer takes reasonable

steps to provide the financial institution with the

pertinent information, whether or not a particular

employee actually receives the information (12 CFR

1005.6(b)(5)(i)). Even if the consumer is unable to

provide the account number or the card number,

the notice effectively limits the consumer’s liability if

the consumer sufficiently identifies the account in

question, for example, by giving the name on the

account and the type of account (Comment

6(b)(5)-3). At the consumer’s option, notice may be

given in person, by telephone, or in writing (12 CFR

1005.6(b)(5)(ii)). Notice in writing is considered

given at the time the consumer mails the notice or

delivers the notice for transmission by any other

usual means to the financial institution. Notice may

also be considered given when the financial

institution becomes aware of circumstances lead-

ing to the reasonable belief that an unauthorized

transfer has been or may be made (12 CFR

1005.6(b)(5)(iii)).

Relation of error resolution to Truth in Lending.

The liability and error resolution provisions in 12

CFR 1005.6 and 1005.11 apply to an extension of

credit that occurs under an agreement between the

consumer and a financial institution to extend credit

when the consumer’s account is overdrawn, to

maintain a specified minimum balance in the

consumer’s account, or under an overdraft service

(12 CFR 1005.12(a)(1)(ii)). As provided in 12 CFR

1005.12 and related commentary, for transactions

involving access devices that also function as

credit cards, the liability and error resolution

provisions in 12 CFR 1005.6 and 1005.11 or

Regulation Z will apply depending on the nature of

the transaction:

• If the unauthorized use of a combined access

device−credit card solely involves an extension

of credit, other than an extension of credit

described under 12 CFR 1005.12(a)(1)(iii), and

does not involve an EFT, for example, when the

card is used to draw cash advances directly from

a credit line, only the error resolution provisions of

Regulation Z will apply.

• If the unauthorized use of a combined access

device−credit card involves only an EFT, for

example, debit card purchases or cash withdraw-

als at an ATM from a checking account, only the

error resolution provisions of 12 CFR 1005.6 and

1005.11 will apply.

• If a combined access device−credit card is

stolen and unauthorized transactions are made

by using the card as both a debit card and a

credit card, 12 CFR 1005.6 and 1005.11 will

apply to the unauthorized transactions in which

the card was used as a debit card, and

Regulation Z will apply to the unauthorized

transactions in which the card was used as a

credit card.

Procedures for Resolving Errors—

12 CFR 1005.11

This section defines the term error and describes

the steps the consumer must take when asserting

an error in order to receive the protection of the

EFTA and 12 CFR 1005.11, and the procedures

that a financial institution must follow to resolve an

alleged error under this section.

An error includes any of the following:

• an unauthorized EFT

• an incorrect EFT to or from the consumer’s

account

• the omission from a periodic statement of an EFT

to or from the consumer’s account that should

have been included

• a computational or bookkeeping error made by

the financial institution relating to an EFT

• the consumer’s receipt of an incorrect amount of

money from an electronic terminal

• an EFT not identified in accordance with the

requirements of 12 CFR 1005.9 or 1005.10(a)

• a consumer’s request for any documentation

required by 12 CFR 1005.9 or 1005.10(a) or for

additional information or clarification concerning

an EFT (12 CFR 1005.11(a)(1))

The term error does not include:

• a routine inquiry about the balance in the

consumer’s account or a request for duplicate

copies of documentation or other information that

is made only for tax or other record-keeping

purposes (12 CFR 1005.11(a)(2)(i), (ii), and (iii))

• the fact that a financial institution does not make

a terminal receipt available for a transfer of $15 or

less in accordance with 12 CFR 1005.9(e)

(Comment 11(a)-6)

A financial institution must comply with the error

resolution procedures in 12 CFR 1005.11 with

respect to any oral or written notice of error from the

Electronic Fund Transfer Act

14 (11/13) • Reg. E Consumer Compliance Handbook

consumer that

• the financial institution receives not later than 60

days after sending a periodic statement or other

documentation first reflecting the alleged error

(see 12 CFR 1005.14 and 1005.18)

• enables the financial institution to identify the

consumer’s name and account number

• indicates why the consumer believes the error

exists and, to the extent possible, the type, date,

and amount of the error (12 CFR 1005.11(b)(1))

A financial institution may require a consumer to

give written confirmation of an error within 10

business days of giving oral notice. The financial

institution must provide the address where confir-

mation must be sent (12 CFR 1005.11(b)(2)).

Error resolution procedures. After receiving a

notice of error, the financial institution must do all of

the following:

• promptly investigate the oral or written allegation

of error;

• complete its investigation within 10 business

days (12 CFR 1005.11(c)(1));

• report the results of its investigation within three

business days after completing its investigation;

• correct the error within one business day after

determining that an error has occurred.

The financial institution may take up to 45

calendar days (12 CFR 1005.11(c)(2)) to complete

its investigation provided it

• provisionally credits the funds (including interest,

where applicable) to the consumer’s account

within the 10 business-day period

• advises the consumer within two business days

of the provisional crediting

• gives the consumer full use of the funds during

the investigation

A financial institution need not provisionally

credit the account to take up to 45 calendar days to

complete its investigation if the consumer fails to

provide the required written confirmation of an oral

notice of error, or if the notice of error involves an

account subject to the margin requirements or

other aspects of Regulation T (Securities Credit by

Brokers and Dealers, 12 CFR Part 220) (12 CFR

1005.11(c)(2)(i)(B)).

However, where an error involves an unauthor-

ized EFT, the financial institution must comply with

the requirements of the provisions relating to

unauthorized EFTs before holding the consumer

liable, even if the consumer does not provide a

notice of error within the time limits in 12 CFR

1005.11(b) (Comment 11(b)(1)-7).

When investigating a claim of error, the financial

institution need only review its own records if the

alleged error concerns a transfer to or from a third

party, and there is no agreement between the

financial institution and the third party for the type of

EFT involved (12 CFR 1005.11(c)(4)). However, the

financial institution may not limit its investigation

solely to the payment instructions where other

information within the financial institution’s records

pertaining to a particular account may help to

resolve a consumer’s claim (Comment 11(c)(4)-5).

If, after investigating the alleged error, the

financial institution determines that an error has

occurred, it must promptly (within one business

day after such determination) correct the error,

including the crediting of interest if applicable. The

financial institution must provide within three busi-

ness days of the completed investigation an oral or

written report of the correction to the consumer

and, as applicable, notify the consumer that the

provisional credit has been made final (12 CFR

1005.11(c)(2)(iii) and (iv)).

If the financial institution determines that no error

occurred or that an error occurred in a different

manner or amount from that described by the

consumer, the financial institution must mail or

deliver a written explanation of its findings within

three business days after concluding its investiga-

tion. The explanation must include a notice of the

consumer’s rights to request the documents upon

which the financial institution relied in making its

determination (12 CFR 1005.11(d)).

Upon debiting a provisionally credited amount,

the financial institution must notify the consumer of

the date and amount of the debit and of the fact that

the financial institution will honor (without charge)

checks, drafts, or similar paper instruments pay-

able to third parties and preauthorized debits for

five business days after transmittal of the notice.

The financial institution need honor only items that it

would have paid if the provisionally credited funds

had not been debited. Upon request from the

consumer, the financial institution must promptly

mail or deliver to the consumer copies of docu-

ments upon which it relied in making its determina-

tion (12 CFR 1005.11(d)(2)).

If a notice involves an error that occurred within

30 days after the first deposit to the account was

made, the time periods are extended from 10 and

45 days, to 20 and 90 days, respectively. If the

notice of error involves a transaction that was not

initiated in a state or resulted from a point-of-sale

debit card transaction, the 45-day period is ex-

tended to 90 days (12 CFR 1005.11(c)(3)).

If a financial institution has fully complied with the

investigation requirements, it generally does not

need to reinvestigate if a consumer later reasserts

the same error. However, it must investigate a claim

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 15 (11/13)

of error asserted by a consumer following receipt of

information provided pursuant to 12 CFR 1005.11

(a)(1)(vii) and 12 CFR 1005.11(e).

VI. Receipts and Periodic Statements

Documentation of Transfers—12 CFR

1005.9

Electronic terminal receipts. Receipts must be

made available at the time a consumer initiates an

EFT at an electronic terminal (12 CFR 1005.9(a)).

Financial institutions may provide receipts only to

consumers who request one (Comment 9(a)-1).

The receipt must include, as applicable:

•Amount of the transfer—a charge for making the

transfer may be included in the amount, provided

the charge is disclosed on the receipt and on a

sign posted on or at the terminal.

•Date—the date the consumer initiates the trans-

fer.

•Type of transfer and type of account—

descriptions such as ‘‘withdrawal from checking’’

or ‘‘transfer from savings to checking’’ are

appropriate. This is true even if the accounts are

only similar in function to a checking account

(such as a share draft or NOW account) or a

savings account (such as a share account). If the

access device used can only access one

account, the type of account may be omitted

(Comments 9(a)(3)-1; 9(3)-2; 9(3)-4; and 9(3)-5).

•Number or code identifying the consumer’s

account(s) or the access device used to initiate

the transfer—the number and code need not

exceed four digits or letters.

•Location of the terminal—The location of the

terminal where the transfer is initiated or an

identification, such as a code or terminal number.

If the location is disclosed, except in limited

circumstances where all terminals are located in

the same city or state, the receipt must include

the city and state or foreign country and one of

the following:

– street address of the terminal;

– generally accepted name for the location of the

terminal (such as an airport, shopping center,

or branch of a financial institution); or

– name of the entity (if other than the financial

institution providing the statement) at whose

place of business the terminal is located, such

as a store, and the city, state, or foreign

country (12 CFR 1005.9(a)(5)).

•Third party—Name of any third party to or from

whom funds are transferred—a code may be

used to identify the party if the code is explained

on the receipt. This requirement does not apply if

the name of the party is provided by the

consumer in a manner the terminal cannot

duplicate on the receipt, such as on a payment

stub (12 CFR 1005.9(a)(6) and Comment

9(a)(6)-1).

Receipts are not required for EFTs of $15 or less

(12 CFR 1005.9(e)).

Periodic statements. Periodic statements must

be sent for each monthly cycle in which an EFT has

occurred, and at least quarterly if no EFT has

occurred (12 CFR 1005.9(b)). For each EFT made

during the cycle, the statement must include, as

applicable:

• amount of the transfer—if a charge was imposed

at an electronic terminal by the owner or operator

of the terminal, that charge may be included in

the amount

• date the transfer was posted to the account

• type of transfer(s) and type of account(s) to or

from which funds were transferred

• for each transfer (except deposits of cash, or a

check, draft or similar paper instrument to the

consumer’s account) initiated at an electronic

terminal, the terminal location as required for the

receipt under 12 CFR 1005.9(a)(5)

• name of any third-party payee or payor

• account number(s)

• total amount of any fees and charges, other than

a finance charge as defined by Regulation Z,

assessed during the period for making EFTs, the

right to make EFTs, or for account maintenance

• balance in the account at the beginning and

close of the statement period

• address and telephone number to be used by the

consumer for inquiries or notice of errors. If the

financial institution has elected to send the

abbreviated error notice with every periodic

statement, the address and telephone number

may appear on that document.

• if the financial institution has provided a tele-

phone number which the consumer can use to

find out whether or not a preauthorized transfer

has taken place, that telephone number

Exceptions to the periodic statement

requirement for certain accounts

•Passbook accounts. Where a consumer’s pass-

book may not be accessed by an EFT other than

preauthorized transfers to the account, a periodic

statement need not be sent, provided that the

financial institution updates the consumer’s pass-

book or provides the required information on a

separate document at the consumer’s request.

To update the passbook, the amount and date of

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16 (11/13) • Reg. E Consumer Compliance Handbook

each EFT made since the passbook was last

presented must be listed (12 CFR 1005.9(c)(1)

(i)). For other accounts that may be accessed

only by preauthorized transfers to the account,

the financial institution must send a periodic

statement at least quarterly (12 CFR 1005.9(c)(1)

(ii)).

•Transfers between accounts. If a transfer occurs

between two accounts of the consumer at the

same financial institution, the transfer need only

be documented for one of the two accounts (12

CFR 1005.9(c)(2)). A preauthorized transfer be-

tween two accounts of the consumer at the same

financial institution is subject to the 12 CFR

1005.9(c)(1) rule on preauthorized transfers and

not the 12 CFR 1005.9(c)(2) rule on intra-

institutional transfers (12 CFR 1005.9(c)(3)).

•Documentation for foreign-initiated transfers. If

an EFT is initiated outside the United States, the

financial institution need not provide a receipt or

a periodic statement reflecting the transfer if it

treats an inquiry for clarification or documentation

as a notice of error (12 CFR 1005.9(d)).

Alternatives to Periodic Statements for

Financial Institutions Offering Payroll Card

Accounts—12 CFR 1005.18

This section provides an alternative to providing

periodic statements for payroll card accounts if

financial institutions make the account information

available to consumers by specific means. In

addition, this section clarifies how financial institu-

tions that do not provide periodic statements for

payroll card accounts can comply with the subpart

A requirements relating to initial disclosures, the

annual error resolution notice, liability limits, and

the error resolution procedures.

Typically, employers and third-party service

providers do not meet the definition of a ‘‘financial

institution’’ subject to the regulation because they

neither (i) hold payroll card accounts nor (ii) issue

payroll cards and agree with consumers to provide

EFT services in connection with payroll card

accounts. However, to the extent an employer or a

service provider undertakes either of these func-

tions, it would be deemed a financial institution

under the regulation (Comment 18(a)-2).

Alternative to Periodic Statements. A financial

institution does not need to furnish periodic state-

ments required by 12 CFR 1005.9(b) if the financial

institution makes available to the consumer the

following:

• the account balance, through a readily available

telephone line

• an electronic history of account transactions

covering at least 60 days preceding the date the

consumer electronically accesses the account

• a written history of the account transactions

provided promptly in response to an oral or

written request and covering at least 60 days

preceding the date the financial institution re-

ceives the consumer’s request (12 CFR 1005.18

(b)(1))

The history of account transactions must include

the same type of information required on periodic

statements under 12 CFR 1005.9(b) (12 CFR

1005.18(b)(2)).

Requirements to comply with Regulation E. If a

financial institution provides an alternative to peri-

odic statements under 12 CFR 1005.18(b), it must

comply with the following:

• Modify the initial disclosures under 12 CFR

1005.7(b) by disclosing:

– a telephone number that the consumer may

call to obtain the account balance; the means

by which the consumer can obtain an elec-

tronic account history, such as the address of

an Internet website; 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 12 CFR 1005.7(b)(6)), including a

telephone number to call to request a history.

The disclosure required by 12 CFR 1005.18(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 Part 1005.

– a notice concerning error resolution that is

substantially similar to the notice contained in

paragraph A-7(b) in Appendix A, in place of

the notice required by 12 CFR 1005.7(b)(10)

• Provide an annual error resolution notice that is

substantially similar to the notice contained in

paragraph (b) to A-7—Model Clauses for Finan-

cial Institutions Offering Payroll Card Accounts in

Appendix A of Part 1005, in place of the notice

required by 12 CFR 1005.8(b). Alternatively, a

financial institution may include on or with each

electronic and written history provided in accor-

dance with 12 CFR 1005.18(b)(1), a notice

substantially similar to the abbreviated notice for

periodic statements contained in paragraph

A-3(b) in Appendix A, modified as necessary to

reflect the error-resolution provisions set forth in

this section.

• Limits on consumer liability.

– For purposes of 12 CFR 1005.6(b)(3), the

60-day period for reporting any unauthorized

transfer begins on the earlier of:

• the date the consumer electronically ac-

cesses the consumer’s account under 12

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 17 (11/13)

CFR 1005.18(b)(1)(ii), provided that the elec-

tronic history made available to the con-

sumer reflects the transfer; or

• the date the financial institution sends a

written history of the consumer’s account

transactions requested by the consumer

under 12 CFR 1005.18(b)(1)(iii) in which the

unauthorized transfer is first reflected.

– A financial institution may limit the consumer’s

liability for an unauthorized transfer as pro-

vided under 12 CFR 1005.6(b)(3) for transfers

reported by the consumer within 120 days after

the transfer was credited or debited to the

consumer’s account.

• Comply with error resolution requirements.

– An error notice is considered timely, and the

financial institution must comply with the re-

quirements of 12 CFR 1005.11, if the financial

institution receives notice from the consumer

no later than the earlier of:

• 60 days after the date the consumer elec-

tronically accesses the consumer’s account

under 12 CFR 1005.18(b)(1)(ii), provided

that the electronic history made available to

the consumer reflects the alleged error; or

• 60 days after the date the financial institution

sends a written history of the consumer’s

account transactions requested by the con-

sumer under 12 CFR 1005.18(b)(1)(iii) in

which the alleged error is first reflected.

– Alternatively, a financial institution complies

with the error resolution requirements in 12

CFR 1005.11 if it investigates any oral or written

notice of an error from the consumer that is

received by the financial institution within 120

days after the transfer allegedly in error was

credited or debited to the consumer’s account.

VII. Gift Cards—12 CFR 1005.20

A gift card is a type of prepaid card that is

designed to be purchased by one consumer and

given to another consumer as a present or

expression of appreciation or recognition. When

provided in the form of a plastic card, a user of a

gift card is able to access and spend the value

associated with the device by swiping the card at a

POS terminal, much as a person would use a debit

card.

Scope of the gift card rule. The rule is generally

limited to gift certificates, store gift cards, or

general-use prepaid cards sold or issued to

consumers primarily for personal, family, or house-

hold purposes. It generally does not apply to cards,

codes, or other devices that are reloadable and not

marketed or labeled as a gift card or gift certificate

and loyalty, award, and promotional gift cards. See

also the exclusions from the gift card definitions,

described above.

Restrictions on dormancy, inactivity, or service

fees—12 CFR 1005.20(d). No person may impose

a dormancy, inactivity, or service fee with respect

to a gift certificate, store gift card, or general-use

prepaid card, unless three conditions are satisfied:

1. There has been no activity with respect to the

certificate or card within the one-year period

prior to the imposition of the fee;

2. Only one such fee is assessed in a given

calendar month; and

3. Disclosures regarding dormancy, inactivity, or

service fees are clearly and conspicuously

stated on the certificate or card, and the person

issuing or selling the certificate or card has

provided these disclosures to the purchaser

before the certificate or card is purchased. See

the disclosure section, above, for additional

information.

Expiration date restrictions—12 CFR 1005.20(e).

A gift certificate, store gift card, or general-use

prepaid card may not be sold or issued unless the

expiration date of the funds underlying the certifi-

cate or card is no less than five years after the date

of issuance (in the case of a gift certificate) or five

years after the date of last load of funds (in the case

of a store gift card or general-use prepaid card). In

addition, information regarding whether funds un-

derlying a certificate or card may expire must be

clearly and conspicuously stated on the certificate

or card and disclosed prior to purchase.

No person may sell or issue a certificate or card

with an expiration date unless the person has

established policies and procedures to provide

consumers with a reasonable opportunity to pur-

chase a certificate or card that has an expiration

date that is at least five years from the date of

purchase. A person who has established policies

and procedures to prevent the sale of a certificate

or card with less than five years from the date of

purchase satisfies this requirement.

A certificate or card generally must include a

disclosure alerting consumers to the difference

between the certificate or card expiration date and

the funds expiration date, if any, and that the

consumer may contact the issuer for a replacement

card. This disclosure must be stated with equal

prominence and in close proximity to the certificate

or card expiration date. Non-reloadable certificates

or cards that bear an expiration date on the

certificate or card that is at least seven years from

the date of manufacture need not include this

disclosure. See the disclosure section, above, for

additional information.

To ensure that consumers are able to access the

Electronic Fund Transfer Act

18 (11/13) • Reg. E Consumer Compliance Handbook

underlying funds for the full five-year period, fees

may not be imposed for replacing an expired

certificate or card if the underlying funds remain

valid (unless the card has been lost or stolen). In

lieu of sending a replacement certificate or card,

issuers may remit, without charge, the remaining

balance of funds to the consumer.

VIII. Other Requirements

Preauthorized Transfers—12 CFR

1005.10

A preauthorized transfer may be either a credit to,

or a debit from, an account.

Preauthorized transfers to a consumer’s account.

When an account is scheduled to be credited by a

preauthorized EFT from the same payor at least

once every 60 days, the financial institution must

provide some form of notice to the consumer so

that the consumer can find out whether or not the

transfer occurred (12 CFR 1005.10(a)). The notice

requirement will be satisfied if the payor provides

notice to the consumer that the transfer has been

initiated. If the payor does not provide notice, the

financial institution must adopt one of three alter-

native procedures for giving notice:

1. The financial institution may give the consumer

oral or written notice within two business days

after a preauthorized transfer occurs.

2. The financial institution may give the consumer

oral or written notice, within two business days

after the preauthorized transfer was scheduled

to occur, that the transfer did not occur.

3. The financial institution may establish a readily

available telephone line

that the consumer

may call to find out whether a preauthorized

transfer has occurred. If the financial institution

selects this option, the telephone number must

be disclosed on the initial disclosures and on

each periodic statement.

The financial institution need not use any specific

language to give notice but may not simply provide

the current account balance (Comment 10(a)(1)-1).

The financial institution may use different methods

of notice for different types of preauthorized

transfers and need not offer consumers a choice of

notice methods (Comment 10(a)(1)-2).

The financial institution that receives a preautho-

rized transfer must credit the consumer’s account

as of the day the funds are received (12 CFR

1005.10(a)(3)).

Preauthorized transfers from a customer’s ac-

count. Preauthorized transfers from a consumer’s

account may only be authorized by the consumer

in writing and signed or similarly authenticated by

the consumer (12 CFR 1005.10(b)). Signed, written

authorizations may be provided electronically,

subject to the E-Sign Act (Comment 10(b)-5). In all

cases, the party that obtains the authorization from

the consumer must provide a copy to the con-

sumer. If a third-party payee fails to obtain an

authorization in writing or fails to provide a copy to

the consumer, the third-party payee and not the

financial institution has violated subpart A (Com-

ment 10(b)-2).

Stop payments. Consumers have the right to

stop payment of preauthorized transfers from

accounts. The consumer must notify the financial

institution orally or in writing at any time up to three

business days before the scheduled date of the

transfer (12 CFR 1005.10(c)(1)). If the debit item is

resubmitted, the institution must continue to honor

the stop-payment order. (Comment 10(c)-1) The

financial institution may require written confirmation

of an oral stop payment order to be made within 14

days of the consumer’s oral notification. If the

financial institution requires a written confirmation,

it must inform the consumer at the time of the oral

stop payment order that written confirmation is

required and provide the address to which the

confirmation should be sent. If the consumer fails to

provide written confirmation, the oral stop payment

order ceases to be binding after 14 days (12 CFR

1005.10(c)(2)).

Notice of transfers varying in amount. If a

preauthorized transfer from a consumer’s account

varies in amount from the previous transfer under

the same authorization or the preauthorized amount,

either the financial institution or the designated

payee must send to the consumer a written notice,

at least 10 days before the scheduled transfer date,

of the amount and scheduled date of the transfer

(12 CFR 1005.10(d)(1)). The consumer may elect to

receive notice only when the amount varies by

more than an agreed amount or falls outside a

specified range (12 CFR 1005.10(d)(2)). The range

must be an acceptable range that the consumer

could reasonably anticipate (Comment 10(d)(2)-1).

The financial institution does not violate Regulation

E if the payee fails to provide sufficient notice

(Comment 10(d)-1).

Compulsory use. The financial institution may not

make it a condition for an extension of credit that

repayment will be by means of preauthorized EFT,

except for credit extended under an overdraft

credit plan or extended to maintain a specified

minimum balance in the consumer’s account (12

17. The telephone line must be ‘‘readily available’’ so that

consumers calling to inquire about transfers are able to have their

calls answered reasonably promptly during normal business

hours. During the initial call in most cases and within two business

days after the initial call in all cases, the financial institution should

be able to verify whether the transfer was received (Comment

10(a)(1)-5). Within its primary service area, a financial institution

must provide a local or toll-free telephone number (Comment

10(a)(1)-7).

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 19 (11/13)

CFR 1005.10(e)(1)). The financial institution may

offer a reduced APR or other cost-related incentive

for an automatic payment feature as long as the

creditor offers other loan programs for the type of

credit involved (Comment 10(e)(1)-1).

Services Offered by Provider Not

Holding consumer’s Account—12 CFR

1005.14

A person who provides EFT services to a consumer

but does not hold the consumer’s account is a

service provider subject to 12 CFR 1005.14 if the

person issues an access device that the consumer

can use to access the account and no agreement

exists between the person and the account-holding

financial institution. Transfers initiated by a service

provider are often cleared through an automated

clearinghouse (ACH).

The responsibilities of the service provider are

set forth in 12 CFR 1005.14(b)(l) and (2). The duties

of the account-holding financial institution with

respect to the service provider are found in 12 CFR

1005.14(c)(l) and (2).

Electronic Fund Transfer of Government

Benefits—12 CFR 1005.15

12 CFR 1005.15 contains the rules that apply to

electronic benefit transfer (EBT) programs. It pro-

vides that government agencies must comply with

modified rules on the issuance of access devices,

periodic statements, initial disclosures, liability for

unauthorized use, and error resolution notices.

IX. Relation to Other Laws—12 CFR

1005.12

This section describes the relationship between the

EFTA and the Truth in Lending Act (TILA). The

section also provides procedures for states to

apply for exemptions from the requirements of the

EFTA or Regulation E for any class of EFTs within

the state.

The EFTA governs the following:

• the issuance of debit cards and other access

devices with EFT capabilities;

• the addition of EFT features to credit cards; and

• the issuance of access devices whose only credit

feature is a pre-existing agreement to extend

credit to cover account overdrafts or to maintain

a minimum account balance, or is an overdraft

service.

The TILA governs all of the following:

• the issuance of credit cards as defined in

Regulation Z;

• the addition of a credit feature to a debit card or

other access device, other than an overdraft

service; and

• the issuance of dual debit/credit cards, except

for access devices whose only credit feature is a

pre-existing agreement to cover account over-

drafts or to maintain a minimum account balance,

or is an overdraft service.

SUBPART B—REQUIREMENTS FOR

REMITTANCE TRANSFERS

Subpart B provides new disclosures, error resolu-

tion, and cancellation and refund rights to consum-

ers who send remittance transfers to be received

by other consumers or businesses in a foreign

country.

X. Remittance Transfer

Definitions—12 CFR 1005.30

The definitions in subpart A (12 CFR 1005.2) also

apply to subpart B unless specifically modified or

limited by subpart B. The definitions in subpart B

(12 CFR 1005.30) are applicable only to subpart B.

Agent is an agent, authorized delegate, or

person affiliated with a remittance transfer provider,

as defined under state or other applicable law,

when that person acts for a remittance transfer

provider. A person is not deemed a remittance

transfer provider when it performs activities as an

agent on behalf of a remittance transfer provider

(Comment 30(f)-1).

A business day is any day that the offices of a

remittance transfer provider are open to the public

for carrying on ‘‘substantially all business func-

tions.’’

Preauthorized remittance transfer is a remittance

transfer authorized in advance to recur at substan-

tially regular intervals.

Remittance transfer is an electronic transfer of

funds requested by a consumer in a state to a

designated recipient that is sent by a remittance

transfer provider. The term applies whether or not

the consumer holds an account and whether or not

the transfer is an electronic fund transfer.

An electronic transfer of funds occurs when

a. a provider makes an electronic book entry

between different settlement accounts to make

18. This section also prohibits anyone from requiring the

establishment of an account for receipt of EFTs with a particular

financial institution either as a condition of employment or the

receipt of a government benefit (12 CFR 1005.10(e)(2)). However,

the employer may require direct deposit of salary, as long as the

employee may choose the financial institution that will accept the

direct deposit, or limit direct deposits to one financial institution as

long as the employee may choose to receive salary by other

means (e.g., check or cash) (Comment 10(e)(2)-1).

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20 (11/13) • Reg. E Consumer Compliance Handbook

the remittance transfer.

b. a payment is made under a bill-payment

service available to a consumer via computer or

other electronic means, except in certain cir-

cumstances where a check, draft, or similar

paper instrument drawn on a consumer’s ac-

count under the bill-payment service is mailed

abroad.

An electronic transfer of funds does not occur

where a sender mails funds directly to a recipient,

or funds are provided to a courier for delivery to a

foreign country (Comment 30(e)-1)).

Transactions of $15 or less and certain transac-

tions in connection with securities and commodities

transfers that are excluded from the definition of an

EFT are not remittance transfers (12 CFR 1005.30

(e)(2) and 12 CFR 1005.3(c)(4)).

Remittance transfers include

a. transfers in cash or by another method con-

ducted through a money transmitter or a

financial institution;

b. consumer wire transfers conducted by a finan-

cial institution upon a sender’s request to wire

money from the sender’s account to a desig-

nated recipient;

c. an addition of funds to a prepaid card by a

participant in a prepaid card program, such as

a prepaid card issuer or its agent, that is

directly engaged with the sender to add these

funds, where the prepaid card is sent or was

previously sent by a participant in the prepaid

card program to a person in a foreign country,

even if a sender retains the ability to withdraw

such funds;

d. international ACH transactions sent by the

sender’s financial institution at the sender’s

request;

e. online bill payments and other electronic trans-

fers that a sender schedules in advance,

including preauthorized remittance transfers,

made by the sender’s financial institution at the

sender’s request to a designated recipient

(Comment 30(e)-3).

Sender is a consumer in a state, who requests a

remittance transfer primarily for personal, family, or

household purposes. For account-based transfers,

the location of the consumer’s account will deter-

mine whether the consumer is located in a state.

For transfers not made from an account that are

requested by telephone or electronically, the

remittance transfer provider may make the deter-

mination of whether a consumer is located in a

state based on information provided by the con-

sumer and any records associated with the con-

sumer (Comment 30(g)-1).

A designated recipient is any person identified

by the name provided by a sender to receive a

remittance transfer at a location in a foreign

country. A designated recipient can be either a

natural person or an organization such as a

corporation (Comment 30(c)-1). Similar to the

definition of ‘‘sender,’’ for transfers to a designated

recipient’s account, where funds are to be received

depends on where the recipient’s account is

located.

‘‘Remittance transfer provider’’ or ‘‘provider’’ is

any person that provides remittance transfers for a

consumer in the normal course of its business,

regardless of whether the consumer holds an

account with such person (12 CFR 1005.30(f)(1)).

Whether a person provides remittance transfers

in the ‘‘normal course of business’’ depends on the

facts and circumstances, including the total num-

ber and frequency of remittance transfers sent by

the provider. The rule also provides a safe harbor

for a person that provided 100 or fewer remittance

transfers in the previous calendar year and pro-

vides 100 or fewer remittance transfers in the

current calendar year (a total via all channels).

Such a person is deemed not to be providing

remittance transfers in the normal course of its

business and is therefore not subject to the rule’s

requirements. In determining whether a person

qualifies for the safe harbor, any transfers that are

excluded from the definition of ‘‘remittance trans-

fer’’ such as small value transactions or certain

securities and commodities transfers are excluded.

If a person exceeds the safe harbor criteria and is

providing remittance transfers for consumers in the

normal course of its business, that person has a

reasonable period of time, not to exceed six

months, to begin complying with subpart B (12 CFR

1005.30(f)(2) and Comment 30(f)-2).

‘‘Covered third-party fees’’ means any fees that

are imposed on the remittance transfer by a person

other than the remittance transfer provider that are

not non-covered third-party fees. Fees imposed on

the remittance transfer include only those fees that

are charged to the designated recipient and are

specifically related to the remittance transfer (Com-

ment 30(h)-1). Examples include fees imposed on

a remittance transfer by intermediary institutions in

connection with a wire transfer (sometimes referred

to as ‘‘lifting fees’’) and fees imposed on a

remittance transfer by an agent of the provider at

pick-up for receiving the transfer (Comment 30(h)-

2).

‘‘Non-covered third-party fees’’ means any fees

imposed by the designated recipient’s institution

for receiving a remittance transfer into an account

except if the institution acts as an agent of the

remittance transfer provider. For example, a fee

imposed by the designated recipient’s institution

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Consumer Compliance Handbook Reg. E • 21 (11/13)

for receiving an incoming transfer into an account

is a non-covered third-party fee if the institution is

not acting as the agent of the remittance transfer

provider. A designated recipient’s account does

not include a credit card, prepaid card, or a virtual

account held by an Internet-based or mobile

telephone company that is not a bank, savings

association, credit union, or equivalent institution

(Comment 30(h)-3).

XI. Disclosures—12 CFR 1005.31

Providers must give senders disclosures at certain

stages of the remittance transfer process. The rule

requires providers to give senders a prepayment

disclosure when a transfer request is made, but

prior to payment for the transfer. Providers must

also provide a receipt when payment is made for

the transfer. Model disclosure forms are provided

in Appendix A.

General Form of Disclosures—12 CFR

1005.31(a)

Required disclosures or disclosures permitted by

12 CFR 1005.31(b)(1)(viii) or 12 CFR 1005.33(h)(3)

must be clear and conspicuous and generally be

provided to the sender in writing. Disclosures may

contain commonly accepted or readily understand-

able abbreviations or symbols. Disclosures are

clear and conspicuous if they are readily under-

standable and, in the case of written and electronic

disclosures, the location and type size are readily

noticeable to senders. Oral disclosures are clear

and conspicuous when they are given at a volume

and speed sufficient for a sender to hear and

comprehend them (12 CFR 1005.31(a); Comments

31(a)(1)-1 and 31(a)(2)-2).

Prepayment disclosures may be provided elec-

tronically without E-SIGN consent, if the sender

electronically requests the provider to send the

transfer. However, the receipt for the transaction

may be provided electronically only with E-SIGN

consent (12 CFR 1005.31(a)(2); Comment 31(a)(2)-

1).

Written and electronic disclosures generally

must be made in a retainable form. Prepayment

disclosures provided via mobile application or text

message (to the extent permitted by the rule) need

not be retainable. In some cases, disclosures may

be disclosed orally. For example, prepayment

disclosures may be disclosed orally if the transac-

tion is conducted orally and entirely by telephone

and the remittance transfer provider complies with

certain other disclosure requirements (12 CFR

1005.31(a)(2) and (a)(3)).

Additional requirements apply for certain trans-

fers scheduled at least three days before the date

of transfer that are conducted orally over the

telephone or by mobile application or text messag-

ing (12 CFR 1005.31(a)(3)(iv) and (a)(5)(iv)).

Disclosure Requirements—12 CFR

1005.31(b)

Disclosures provided as applicable. The required

disclosures need to be provided only to the extent

applicable. A remittance transfer provider may

choose to omit an item of information if it is

inapplicable to a particular transaction. Alterna-

tively, a provider may disclose a term and state that

an amount or item is ‘‘not applicable,’’ ‘‘N/A,’’ or

‘‘None’’ (Comment 31(b)-1).

Substantially similar terms, language, and no-

tices. Certain disclosures must be described using

the terms set forth in 12 CFR 1005.31(b) or

substantially similar terms. Terms may be more

specific than those provided. For example, a

remittance transfer provider sending funds may

describe fees imposed by an agent at pick-up as

‘‘Pick-up Fees’’ in lieu of describing them as ‘‘Other

Fees.’’ Foreign language disclosures must contain

accurate translations of the required terms, lan-

guage, and notices as well as the disclosures

permitted by 12 CFR 1005.31(b)(1)(viii) and

1005.33.(h)(3) (Comment 31(b)-2).

Prepayment disclosures—12 CFR

1005.31(b)(1)

A remittance transfer provider must provide the

prepayment disclosure when the sender requests

the remittance transfer but prior to payment for the

transfer. The provider must disclose:

a. the amount to be transferred (transfer amount),

b. front-end fees imposed by the provider and any

taxes collected on the remittance transfer by

the provider (transfer fees and transfer taxes),

c. total amount of the transaction (the sum of the

transfer amount and front-end fees and taxes),

d. the exchange rate,

e. any covered third-party fees (other fees),

f. the total amount to be received by the desig-

nated recipient (total amount of the transaction

minus covered third-party fees), and

g. a statement that non-covered third-party fees or

taxes collected on the remittance transfer by a

third person may apply to the remittance

transfer and result in the designated recipient

receiving less than the amount disclosed. In this

statement, a provider also may, but is not

required, to disclose in the currency in which

the funds will be received, any applicable

non-covered third-party fees or taxes collected

by a person other than the provider.

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22 (11/13) • Reg. E Consumer Compliance Handbook

Transfer amount. Two transfer amount disclo-

sures are required in the prepayment disclosures.

1. The transfer amount in the currency in which the

sender funds the remittance transfer to show the

calculation of the total amount of the transaction.

2. The transfer amount in the currency in which the

funds will be made available to the designated

recipient. This second transfer amount need not

be disclosed if covered third-party fees are not

imposed on the remittance transfer. The terms

used to describe each transfer amount should

be the same (Comment 31(b)(1)-2).

Fees and taxes. Fees imposed and taxes

collected on the remittance transfer by a provider

must be disclosed in the currency in which the

transaction is funded, as applicable. Taxes col-

lected on the remittance transfer by the provider

include taxes imposed on the remittance transfer

by a state or other governmental body (Comment

31(b)(1)-1(i)).

The fees and taxes required to be disclosed by

12 CFR 1005.31(b)(1)(ii) include all fees imposed

and all taxes collected on the remittance transfer

by the provider and include only those that are

specifically related to the remittance transfer. For

example, a provider must disclose any service fees

imposed by an agent at the time of the transfer and

any state taxes collected on the remittance transfer

(Comment 31(b)(1)-1(ii)).

Applicable exchange rate. If the designated

recipient will receive funds in a currency other than

the currency in which the remittance transfer is

funded, a remittance transfer provider must dis-

close the exchange rate to be used by the provider

for the remittance transfer (Comment 31(b)(1)(iv)-

1).

Rounding. The exchange rate disclosed for the

remittance transfer is required to be rounded on the

disclosure. The provider may round to two, three, or

four decimal places, at its option, but this must be

done consistently for each currency. (Comment

31(b)(1)(iv)-2). However, the exchange rate used to

calculate: (a) the transfer amount, (b) the fees and

taxes imposed on the remittance transfer by a

person other than the provider, and (c) the amount

received by the designated recipient, is prior to any

rounding. If an exchange rate need not be

rounded, a provider must use that exchange rate to

calculate these disclosures (Comment 31(b)(1)-3).

Exchange rate used. The exchange rate used by

the provider for the remittance transfer need not

have been set by the provider. For example, an

exchange rate set by an intermediary institution

and applied to the remittance transfer would be the

exchange rate used for the remittance transfer and

must be disclosed by the provider (Comment

31(b)(1)(iv)-3).

Disclosure of covered third-party fees. Covered

third-party fees must be disclosed in the currency

in which the funds will be received by the

designated recipient, using the applicable ex-

change rate, or an estimated exchange rate to the

extent permitted, prior to any rounding of the

exchange rate. If a provider does not have specific

knowledge regarding the currency in which the

funds will be received, the provider may rely on a

sender’s representation as to the currency in which

funds will be received. If a sender does not know

the currency in which funds will be received, the

provider may assume that the currency in which

funds will be received is the currency in which the

remittance transfer is funded (Comment 31(b)(1)

(vi)-1).

Amount received. The remittance transfer pro-

vider is required to disclose the amount that will be

received by the designated recipient in the cur-

rency in which the funds will be received. The

amount received must reflect the exchange rate, all

fees imposed and all taxes collected on the

remittance transfer by the remittance transfer

provider, as well as any covered third-party fees

required to be disclosed. The disclosed amount

received must be reduced by the amount of any

fees or taxes (except non-covered third-party fees

or taxes collected on the remittance transfer by a

person other than the provider) imposed on the

remittance transfer that affect the amount received

even if that amount is imposed or itemized

separately from the transaction amount. (Comment

31(b)(1)(vii)-1).

Required disclaimer when non-covered third-

party fees and taxes collected by a person other

than the provider may apply. The provider is

required to include a disclaimer that non-covered

third-party fees or taxes may apply to the remit-

tance transfer if such taxes and fees apply to a

particular transfer or the provider does not know

whether they apply. This disclosure may only be

provided to the extent applicable. For example, if

the designated recipient’s institution is an agent of

the provider and thus non-covered third-party fees

cannot apply to the transfer, the provider must

disclose all fees imposed on the remittance transfer

and may not provide the disclaimer regarding

non-covered third-party fees (Comment 31(b)(1)

(viii)-1).

Optional disclosure of non-covered third-party

fees and taxes collected by a person other than the

provider. The provider is permitted to disclose any

non-covered third-party fees or taxes collected on

the remittance transfer by a person other than the

provider that will apply to a particular transaction if

it knows the amount of such fees and taxes.

Additionally, the provider is permitted to disclose

an estimate of such fees and taxes, provided any

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 23 (11/13)

estimates are based on reasonable source of

information (Comment 31(b)(1)(viii)-2; 12 CFR

1005.32(b)(3) and Comment 32(b)(3)-1).

Receipt—12 CFR 1005.31(b)(2)

When payment is made, a remittance transfer

provider must provide a receipt to a sender

disclosing all applicable information required in the

prepayment disclosure. The receipt must also

disclose, as applicable:

a. the date of availability of the funds (date

available);

b. the name and, if provided by the sender, the

telephone number and/or address of the desig-

nated recipient (recipient);

c. a statement about the sender’s error resolution

and cancellation;

d. specified contact information for the remittance

transfer provider; and

e. the transfer date for remittance transfers sched-

uled at least three business days in advance, or

the first transfer in a series of of preauthorized

transfers.

The provider must also provide a statement that

the sender can contact the state agency that

licenses or charters the remittance transfer pro-

vider with respect to the particular transfer (if

applicable), and the Consumer Financial Protection

Bureau (CFPB) for questions or complaints about

the remittance transfer provider. The statement

must include the name of the agency(ies), tele-

phone number(s), and website address(es).

Date funds will be available. The provider must

disclose the date in the foreign country on which

the funds will be available to the designated

recipient, using the term ‘‘Date Available’’ or a

substantially similar term. If a provider does not

know the exact date on which funds will be

available, the provider may disclose the latest date

on which the funds will be available. The provider

may also disclose that funds ‘‘may be available

sooner’’ or use a substantially similar term to inform

senders that funds may be available to the

designated recipient on a date earlier than the date

disclosed (Comment 31(b)(2)-1).

Agencies required to be disclosed. The provider

must disclose information about a state agency that

licenses or charters the provider with respect to the

particular remittance transfer. If a financial institu-

tion is solely regulated by a federal agency, the

institution does not need to disclose information

about a state agency. However, information about

the CFPB must be provided whether or not the

CFPB is the provider’s primary federal regulator.

(Comment 31(b)(2)-2). If a provider is licensed in

multiple states, and the state agency that licenses

the provider with respect to the remittance transfer

is determined by the sender’s location, a provider

may make the determination of the sender’s state

based on information provided by the sender and

on any records associated with the sender. A

state-chartered bank must disclose information

about the state agency that granted its charter,

regardless of the location of the sender (Comment

31(b)(2)-3).

Date of transfer on receipt. For remittance

transfers scheduled at least three business days in

advance, or the first transfer in a series of

preauthorized transfers, the date of transfer for the

remittance transfer must be disclosed on the

receipt. Additional disclosures apply to subse-

quent preauthorized remittance transfers, as de-

scribed below regarding 12 CFR 1005.36(d) (Com-

ment 31(b)(2)-4).

Cancellation disclosure. The provider may pro-

vide the three-business-day right-to-cancel notice

(for transfers scheduled three or more business

days before the transfer date) and the 30-minute

right-to-cancel notice (for transfers scheduled fewer

than three business days in advance), on the same

disclosure, with a checkbox or other method to

clearly designate the applicable cancellation pe-

riod. For transfers scheduled three or more busi-

ness days before the transfer date, the cancellation

disclosure should be phrased and formatted in

such a way that it is clear to the sender which

cancellation period is applicable to the date of

transfer disclosed on the receipt (Comment 31(b)

(2)-6).

Combined disclosure—12 CFR

1005.31(b)(3)

As an alternative to providing separate pre-

payment and receipt disclosures, a remittance

transfer provider may provide the information in the

receipt in a single disclosure when the sender

requests the remittance transfer, but prior to

payment for the transfer. If this combined disclo-

sure is provided and the sender completes the

transfer, the remittance transfer provider must

provide the sender with proof of payment when

payment is made for the remittance transfer. For

one-time transfers scheduled at least five business

days in advance, or for the first in a series of

preauthorized transfers, the provider may provide

confirmation that the transaction has been sched-

uled in lieu of the proof of payment if payment is not

processed at the time the remittance transfer is

scheduled. No further proof of payment is required

when payment is later processed.

Proof of payment/confirmation of scheduling. The

proof of payment or confirmation of scheduling

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24 (11/13) • Reg. E Consumer Compliance Handbook

must be clear and conspicuous, provided in writing

or electronically, and provided in a retainable form.

The proof of payment for the transaction may be

provided on the same piece of paper as the

combined disclosure or on a separate piece of

paper. A provider may also provide this additional

information to a sender on a separate piece of

paper when payment is made (12 CFR 1005.31(b)

(3)(ii) and Comment 31(b)(3)-1).

Long-form error resolution and cancellation

notice—12 CFR 1005.31(b)(4)

At the sender’s request, a remittance transfer

provider is required promptly to provide a notice

describing the sender’s error resolution and can-

cellation rights, using language set forth in Model

Form A-36 of Appendix A or substantially similar

language. For any remittance transfer scheduled

by the sender at least three business days before

the date of the transfer, the description of the rights

of the sender regarding cancellation must instead

reflect the requirements of 12 CFR 1005.36(c).

Specific Format of Disclosures—12 CFR

1005.31(c)

Grouping of disclosed information. Disclosures

related to transfer amount, transfer fees and taxes

imposed by the provider, and the total amount of

the transaction generally must be grouped to-

gether. Similarly, disclosures related to the transfer

amount in the currency to be made available to the

designated recipient, covered third-party fees,

taxes collected on the remittance by the provider,

the total amount to be received by the designated

recipient, and the disclaimer statement generally

must be grouped together. Information is grouped

together if multiple disclosures are in close proxim-

ity to one another and a sender can reasonably

calculate the total amount of the transaction and

the amount that will be received by the designated

recipient (12 CFR 1005.31(c)(1) and Comment

31(c)(1)-1).

Proximity of disclosed information. The exchange

rate used for the remittance transfer generally must

be disclosed in close proximity to the other

information required in the prepayment disclosure.

Disclosures on error resolution and cancellation

rights must generally be disclosed in close proxim-

ity to the other disclosures required on the receipt

(12 CFR 1005.31(c)(2)).

Prominence and size of disclosures. Disclosures

required by subpart B or permitted by 12 CFR

1005.31(b)(1)(viii) that are provided in writing or

electronically, other than disclosures permitted to

be provided via mobile application or text mes-

sage, must be in a minimum of eight-point font and

in equal prominence to each other. They must be

provided on the front of the page on which the

disclosures are printed (12 CFR 1005.31(c)(3)).

Segregation of disclosures from other informa-

tion. Disclosures that are provided in writing or

electronically, other than disclosures permitted to

be provided via mobile application or text mes-

sage, must be segregated from everything else

and must contain only information that is ‘‘directly

related’’ to the disclosures (12 CFR 1005.31(c)(4)).

The following is ‘‘directly related’’ information:

a. the date and time of the transaction;

b. the sender’s name and contact information;

c. the location at which the designated recipient

may pick up the funds;

d. the confirmation or other identification code;

e. a company name and logo;

f. an indication that a disclosure is or is not a

receipt or other indicia of proof of payment;

g. a designated area for signatures or initials;

h. a statement that funds may be available sooner;

i. instructions regarding the retrieval of funds,

such as the number of days the funds will be

available to the recipient before they are

returned to the sender;

j. a statement that the provider makes money

from foreign currency exchange; and

k. disclosure of any non-covered third-party fees

and any taxes collected by a person other than

the provider (Comment 31(c)(4)-2).

Terms used in the case of estimated disclosures.

A remittance transfer provider may provide esti-

mates of the amounts required to be disclosed in

the prepayment disclosure, receipt, and combined

disclosure to the extent permitted by 12 CFR

1005.32. An estimate must be described using the

term ‘‘Estimated’’ or a substantially similar term in

close proximity to the estimated term or terms. For

example, a remittance transfer provider could

describe an estimated disclosure as ‘‘Estimated

Transfer Amount,’’ ‘‘Other Estimated Fees and

Taxes,’’ or ‘‘Total to Recipient (Est.)’’ (12 CFR

1005.31(d) and Comment 31(d)-1).

Request to send a remittance transfer. Determin-

ing whether a consumer has requested a remit-

tance transfer depends on the facts and circum-

stances. A sender who asks a provider to send a

remittance transfer, and provides transaction-

specific information to the provider in order to send

funds to a designated recipient, has requested a

remittance transfer. However, a consumer who

solely inquires about that day’s rates and fees to

send to a particular country has not requested the

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 25 (11/13)

provider to send a remittance transfer (Comment

31(e)-1).

When payment is made. Payment is made when

a sender provides cash to the remittance transfer

provider or when payment is authorized (Comment

31(e)-2).

Disclosures related to mobile application and

text message transactions. If a transaction is

conducted entirely by telephone via mobile appli-

cation or text message, a receipt may be mailed or

delivered to the sender pursuant to the timing

requirements for transfers conducted entirely by

telephone (Comment 31(e)-4).

Accuracy of disclosures—when payment is

made. Disclosures required by subpart B or

permitted by 12 CFR 1005.31(b)(1)(viii) must be

accurate when a sender makes payment for the

remittance transfer, except to the extent estimates

are permitted. A remittance transfer provider is not

required to guarantee the terms of the remittance

transfer in the prepayment disclosures for any

specific period of time. However, if any of these

disclosures are not accurate when a sender makes

payment for the remittance transfer, the provider

must give new disclosures before accepting pay-

ment (12 CFR 1005.31(f) and Comment 31(f)-1).

Foreign language disclosures

Written and electronic disclosures required by

subpart B or permitted by 12 CFR 1005.31(b)(1)

(viii) generally must be provided in English and in

each foreign language principally used to adver-

tise, solicit, or market remittance transfer services

at the office in which a sender conducts a

transaction or asserts an error. Alternatively, written

and electronic disclosures can be provided in

English and in the foreign language primarily used

by the sender with the remittance transfer provider,

provided such foreign language is principally used

to advertise, solicit, or market remittance transfers

at the office in which a sender conducts a

transaction or asserts an error. For transfers

requested orally, by text message, or mobile

application, the disclosures must be in the lan-

guage primarily used by the sender to communi-

cate with the transfer provider (12 CFR 1005.31(g)).

Number of foreign languages used in written

disclosure. There is no limit to the number of

languages that may be used on a single document,

but such disclosures must be clear and conspicu-

ous. If the remittance transfer provider chooses to

provide written and electronic disclosures in Eng-

lish and in the foreign language primarily used by

the sender with the remittance transfer provider, it

may provide disclosures in a single document with

both languages or in two separate documents with

one document in English and the other document in

the applicable foreign language (Comment 31(g)-

1).

Language ‘‘primarily used.’’ The language pri-

marily used by the sender with the remittance

transfer provider to conduct the transaction is the

primary language used by the sender with the

remittance transfer provider to convey the informa-

tion necessary to complete the transaction. Simi-

larly, the language primarily used by the sender

with the remittance transfer provider to assert the

error is the primary language used by the sender

with the remittance transfer provider to provide the

information required to assert an error (Comment

31(g)-2).

Language ‘‘principally’’ used. Whether a foreign

language is principally used by the remittance

transfer provider to advertise, solicit, or market is

determined from all relevant facts and circum-

stances, including

a. the frequency with which the foreign language

is used in advertising, soliciting, or marketing of

remittance transfer services at that office;

b. the prominence of the advertising, soliciting, or

marketing of remittance transfer services in that

foreign language at that office; and

c. the specific foreign language terms used in the

advertising soliciting, or marketing of remit-

tance transfer services at that office (Comment

31(g)(1)-1(i)).

Language used to advertise, solicit, or market.

Any commercial message in a foreign language,

appearing in any medium, that promotes directly or

indirectly the availability of remittance transfer

services constitutes advertising, soliciting, or mar-

keting in such foreign language (Comment 31(g)

(1)-2).

Office. An office includes any physical location,

telephone number, or website of a remittance

transfer provider where a sender may conduct a

remittance transfer or assert an error for a remit-

tance transfer (Comment 31(g)(1)-3).

At the office. Any advertisement, solicitation, or

marketing is considered to be made at the office in

which a sender conducts a transaction or asserts

an error if it is posted, provided, or made: at a

physical office, on a website of a remittance

transfer provider that may be used by senders to

conduct remittance transfers or assert errors,

during a telephone call with a remittance transfer

provider that may be used by senders to conduct

remittance transfers or assert errors, or via mobile

application or text message if the mobile applica-

tion or text message may be used by senders to

conduct remittance transfers or assert errors (Com-

Electronic Fund Transfer Act

26 (11/13) • Reg. E Consumer Compliance Handbook

ment 31(g)(1)-4).

XII. Estimates—12 CFR 1005.32

Disclosures for which estimates may be used.

Estimates may be used in certain circumstances

for certain information required in prepayment

disclosures, receipts, and combined disclosures.

Temporary Exception for Insured

Institutions—12 CFR 1005.32(a)

Estimates may be provided for certain amounts

required to be disclosed in the prepayment disclo-

sures, receipts and combined disclosures if

a. the remittance transfer provider cannot deter-

mine the exact amounts for reasons beyond its

control;

b. the remittance transfer provider is an insured

institution; and

c. the remittance transfer is sent from the sender’s

account with the institution.

An insured institution means an insured deposi-

tory institution (including an uninsured U.S branch

and agency of a foreign depository institution) and

an insured credit union (12 CFR 1005.32(a)(3)).

Control. An insured institution cannot determine

exact amounts ‘‘for reasons beyond its control’’

when a person other than the insured institution or

with which the insured institution has no correspon-

dent relationship sets the exchange rate or im-

poses a covered third-party fee required to be

disclosed. For example, if an insured institution has

a correspondent relationship with an intermediary

financial institution in another country and that

intermediary institution sets the exchange rate or

imposes a fee for remittance transfers sent from the

insured institution to the intermediary institution,

then this exception is not applicable and the

insured institution must determine exact amounts

for the disclosures because the determination of

those amounts are not beyond the insured institu-

tion’s control (Comment 32(a)(1)-1).

Covered third-party fees. An insured institution

cannot determine the exact covered third-party

fees to disclose if, for example, an intermediary

institution with which the insured institution does

not have a correspondent relationship imposes a

transfer or conversion fee. However, an insured

institution can determine the exact covered third-

party fees required to be disclosed if it has agreed

upon the specific fees with an intermediary corre-

spondent institution, and this correspondent insti-

tution is the only institution in the transmittal route to

the designated recipient’s institution (Comments

32(a)(1)-2(ii) and -3(ii)).

The temporary exception is available for insured

institutions until July 21, 2015.

Permanent Exception for Transfers to

Certain Countries—12 CFR

1005.32(b)(1)

Estimates may be provided in prepayment disclo-

sures, receipts, or combined disclosures for trans-

fers to certain countries if a remittance transfer

provider cannot determine the exact amounts at

the time the disclosure is required either because

a. the laws of the recipient country do not permit

such a determination, or

b. the method by which transactions are made in

the recipient country does not permit such

determination.

Laws of the recipient country. The laws of the

recipient country do not permit a remittance

transfer provider to determine exact amounts

required to be disclosed when a law or regulation

of the recipient country (e.g., currency exchange or

certain privacy laws) do not allow the person

making funds directly available to the designated

recipient to determine the exact amounts at the

time the disclosure is required. A typical example is

where the law requires an exchange rate to be

either

a. set by the government of the recipient country

after the remittance transfer provider sends the

remittance transfer; or

b. set when the designated recipient receives the

funds (Comment 32(b)(1)-1).

Method by which transactions are made in the

recipient country. The method by which transac-

tions are made in the recipient country does not

permit a remittance transfer provider to determine

exact amounts required to be disclosed when

transactions are sent via international ACH on

terms negotiated between the United States gov-

ernment and the recipient country’s government,

under which the exchange rate is a rate set by the

recipient country’s central bank or other govern-

mental authority after the provider sends the

remittance transfer (Comment 32(b)(1)-3).

Safe harbor list. The remittance transfer provider

may rely on a list of countries published by the

CFPB to determine whether estimates may be

provided for the exchange rate, the transfer

amounts, covered third-party fees, and total amount

to the recipient. If a country is on the CFPB’s list, the

provider may give estimates under this section,

unless it has information that a country on the list

legally permits the provider to determine exact

disclosure amounts. If a country does not appear

on the CFPB’s list, the provider may provide

estimates if it determines that the recipient country

does not legally permit or the method by which

transactions are conducted in that country does not

permit the provider to determine exact disclosure

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 27 (11/13)

amounts (Comments 32(b)(1)-5 and 32(b)(1)-6).

Change in laws of recipient country. If the laws of

a recipient country change such that a remittance

transfer provider can determine exact amounts, the

remittance transfer provider must begin providing

exact amounts for the required disclosures as soon

as reasonably practicable. If the laws of a recipient

country change such that the provider cannot

determine exact disclosure amounts, the provider

may provide estimates even if that country does not

appear on the list published by the CFPB (Com-

ment 32(b)(1)-7).

Permanent Exception for Transfers

Scheduled before the Date of

Transfer—12 CFR 1005.32(b)(2)

For remittance transfers scheduled five or more

business days before the date of the transfer,

estimates may be provided for the exchange rate,

transfer amount, covered third-party fees (where

the exchange rate is also estimated and affects

such fees), and the total amount to recipient, if at

the time the sender schedules such a transfer, the

provider agrees to a sender’s request to fix the

amount to be transferred in the currency in which

the remittance transfer will be received and not the

currency in which it is funded. For example, if a

sender schedules a wire transfer to be sent from

the sender’s bank account denominated in U.S.

dollars but to be paid to the recipient in euro

transfer, the provider is allowed to estimate the

transfer amount, front-end fees or taxes collected

by the provider (if based on the amount trans-

ferred), and the total amount of the transaction. The

provider is also allowed to estimate any covered

third-party fees if the exchange rate is also

estimated and the estimated exchange rate affects

the amount of fees. (12 CFR 1005.32(b)(2) and

Comment 32(b)(2)-1).

Permanent Exception for Optional

Disclosure of Non-covered Third-Party

Fees and Taxes Collected on the

Remittance Transfer by a Person Other

Than the Provider—12 CFR

1005.32(b)(3)

The remittance transfer provider may provide

estimates (as part of the required disclaimer

statement) for applicable non-covered third-party

fees and taxes collected on the remittance transfer

by a person other than the provider, if such

estimates are based on reasonable sources of

information. Reasonable sources of information

may include, for example: information obtained

from recent transfers to the same institution or the

same country or region; fee schedules from the

recipient institution; fee schedules from the recipi-

ent institution’s competitors; surveys of recipient

institution fees in the same country or region as the

recipient institution; information provided or sur-

veys of recipient institutions’ regulators or taxing

authorities; commercially or publicly available da-

tabases, services or sources; and information or

resources developed by international nongovern-

mental organizations or intergovernmental organi-

zations (Comment 32(b)(3)-1).

Bases for Estimates—12 CFR 1005.32(c)

and (d)

If a remittance transfer provider qualifies for either

the temporary or permanent exception, the rule

allows two bases for estimating information in the

disclosures:

1. The estimates must generally be based on any

of the approaches listed in the rule (12 CFR

1005.32(c)(1)).

2. Alternatively, the estimates may be based on an

approach that is not listed, provided that the

designated recipient receives the same, or

greater, amount of funds than the remittance

transfer provider disclosed.

For remittance transfers scheduled five or more

business days before the date of the transfer,

estimates must be based on the exchange rate or,

where applicable, the estimated exchange rate that

the provider would have used or did use that day to

provide disclosures to a sender requesting such a

remittance transfer to be made on the same day.

Approaches listed in the rule

Estimates of the exchange rate. For remittance

transfers sent via international ACH, the estimate

must be based on the most recent exchange rate

set by the recipient country’s central bank or other

governmental authority and reported by a Federal

Reserve Bank. For any remittance transfers for

which estimates are permitted, the exchange rate

may be estimated based on the most recent

publicly available wholesale exchange rate and

any applicable spread that the remittance transfer

provider or its correspondent typically applies for

remittance transfers for that currency or the most

recent exchange rate offered or used by the person

making funds available directly to the designated

recipient or by the person setting the exchange

rate (12 CFR 1005.32(c)(1)).

Where the exchange rate for a remittance

transfer sent via international ACH that qualifies for

the permanent exception is set the following

business day, the most recent exchange rate

available for a transfer is the exchange rate set for

the day that the disclosure is provided, i.e. the

current business day’s exchange rate (Comment

32(c)(1)-1).

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28 (11/13) • Reg. E Consumer Compliance Handbook

Publicly available. Examples of publicly available

sources of information containing the most recent

wholesale exchange rate for a currency include

U.S. news services, such as Bloomberg, the Wall

Street Journal, and the New York Times; a recipient

country’s national news services, and a recipient

country’s central bank or other government agency

(Comment 32(c)(1)-2).

Spread applied to the wholesale exchange rate.

An estimate for disclosing the exchange rate based

on the most recent publicly available wholesale

exchange rate must also reflect any spread the

remittance transfer provider typically applies to the

wholesale exchange rate for remittance transfers

for a particular currency (Comment 32(c)(1)-3).

Most recent exchange rate. If the exchange rate

with respect to a particular currency is published or

provided multiple times throughout the day be-

cause the exchange rate fluctuates throughout the

day, a remittance transfer provider may use any

exchange rate available on that day to determine

the most recent exchange rate (Comment 32(c)(1)-

4).

Estimates of the transfer amount and covered

third-party fees in the currency in which funds will

be received by the designated recipient. Estimates

of the transfer amount in the currency in which the

funds will be received by the designated recipient

as well as covered third-party fees imposed as a

percentage of the amount transferred must be

based on the estimated exchange rate, prior to any

rounding (12 CFR 1005.32(c)(2) and (3)(i)).

Estimates of the fees imposed by intermediary or

final institution. Estimates for covered third-party

fees imposed by intermediary or final institutions

that act as intermediaries or by the designated

recipient’s institution must be based on the remit-

tance transfer provider’s most recent remittance

transfer to the designated recipient’s institution or a

representative transmittal route identified by the

remittance transfer provider (12 CFR 1005.32(c)(3)

(ii).

Estimates of the amount of currency that will be

received by the designated recipient. Estimates for

the amount of currency that will be received by the

designated recipient must be based on the esti-

mates provided in accordance with 12 CFR

1005.31(c)(1) through (3) as applicable for the

transaction (12 CFR 1005.32(c)(4)).

XIII. Procedures for Resolving

Errors—12 CFR 1005.33

Definition of Error—12 CFR 1005.33(a)

In connection with an error asserted under 12 CFR

1005.33, the term error means

a. generally, an incorrect amount paid by a sender

in connection with a remittance transfer;

b. a computational or bookkeeping error made by

the remittance transfer provider relating to the

remittance transfer;

c. the failure, generally, to make available to a

designated recipient the amount of currency

required to be disclosed under 12 CFR 1005.31

(b)(vii) and stated in the disclosure provided to

the sender unless the disclosure stated an

estimate of the amount paid and the difference

results from application of the actual exchange

rate, fees, and taxes, rather than any estimated

amount;

d. the failure, generally, to make funds available to

a designated recipient by the date of availability

stated in the disclosure provided to the sender;

e. the sender’s request for documentation re-

quired by 12 CFR 1005.31 or for additional

information or clarification concerning a remit-

tance transfer, including a request a sender

makes to determine whether an error exists.

(See more detailed discussion of errors and

exceptions below.)

Error due to incorrect amount of currency paid by

sender. This type of error covers circumstances in

which a sender pays an amount that differs from

the total amount of the transaction, including fees

imposed in connection with the transfer stated in

the receipt or combined disclosure provided.

However, there is no error if the disclosure

appropriately stated an estimate of the amount

paid by the sender and the difference results from

application of the actual exchange rate, fees, and

taxes rather than any estimated amounts (12 CFR

1005.33(a)(1)(i) and Comment 33(a)-1).

Error due to incorrect amount of currency

received. This type of error covers circumstances

in which the designated recipient receives an

amount of currency that differs from the amount of

currency identified on the disclosures provided to

the sender. It also covers circumstances in which

the remittance transfer provider transmits an amount

that differs from the amount requested by the

sender. There are three general exceptions to this.

There is no error if

a. the disclosure appropriately, under one of the

two exceptions under 12 CFR 1005.32, stated

an estimate of the amount of currency to be

received and the difference results from appli-

cation of the actual exchange rate, fees, and

taxes rather than any estimated amounts, or

b. the failure was caused by extraordinary circum-

stances outside the remittance transfer provid-

er’s control; or

c. the difference results from the application of

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 29 (11/13)

non-covered third-party fees or taxes collected

on the remittance transfer by a person other

than the provider and the provider provided the

required disclaimer.

A designated recipient may receive an amount of

currency that differs from the amount of currency

disclosed and an error has occurred if for example

a. an exchange rate other than the disclosed rate

is applied to the remittance transfer, or

b. the provider provides the sender a receipt

stating an amount of currency that will be

received by the designated recipient, which

does not reflect additional covered third-party

fees that are imposed by the receiving agent in

the destination country. However, if the desig-

nated recipient will receive less than the amount

of currency disclosed on the receipt due solely

to the additional foreign taxes that the provider

was not required to disclose, no error has

occurred (Comment 33(a)-3(ii)).

Exception for extraordinary circumstances out-

side the remittance transfer provider’s control. If the

provider fails to make the amount of currency

disclosed available to the designated recipient,

such an occurence is not an error if such failure

was caused by extraordinary circumstances out-

side the remittance transfer provider’s control that

could not have been reasonably anticipated.

Examples of extraordinary circumstances outside

the remittance transfer provider’s control that could

not have been reasonably anticipated include war

or civil unrest, natural disaster, garnishment or

attachment of some of the funds after the transfer is

sent, and government actions or restrictions that

could not have been reasonably anticipated by the

remittance transfer provider, such as the imposition

of foreign currency controls or foreign taxes

unknown at the time the receipt or combined

disclosure is provided (Comment 33(a)-4). Note

that foreign taxes are not required to be disclosed.

However, if a provider, believing that there is no

applicable foreign tax, elects not to provide a

disclaimer pursuant to 1005.31(b)(1)(viii), no error

has occurred if a new tax is imposed that could not

have been reasonably anticipated at the time the

receipt or combined disclosure was required to be

given.

Error due to failure to make funds available by

disclosed date of availability. This error generally

covers disputes about the failure to make remit-

tance transfer funds available to a designated

recipient by the disclosed date of availability.

Examples of errors for failure to make funds

available by the disclosed date of availability

include, late or non-delivery of a remittance trans-

fer, delivery of funds to the wrong account, the

fraudulent pick-up of a remittance transfer in a

foreign country by a person other than the desig-

nated recipient, and the recipient agent or institu-

tion’s retention of the remittance transfer, instead of

making the funds available to the designated

recipient.

There is no error if funds were not made available

by the disclosed date due to:

a. extraordinary circumstances outside the remit-

tance transfer provider’s control that could not

have been reasonably anticipated;

b. delays related to the remittance transfer provid-

er’s fraud screening procedures or in accor-

dance with the Bank Secrecy Act, Office of

Foreign Assets Control requirements, or similar

laws or requirements; or

c. the remittance transfer was made with fraudu-

lent intent by the sender or any person acting in

concert with the sender (i.e., friendly fraud); or

d. the sender provided the remittance transfer

provider an incorrect account number or recipi-

ent institution identifier for the designated

recipient’s account or institution, and the remit-

tance transfer provider

i. can demonstrate that the sender provided

an incorrect account number or recipient

institution identifier to the provider in con-

nection with the remittance transfer;

ii. prior to or when sending the transfer, used

reasonably available means to verify (for

recipient institution identifier errors only)

that the recipient institution identifier pro-

vided by the sender corresponded to the

recipient institution name provided by the

sender;

iii. provided notice to the sender (prior to

payment for the remittance transfer) that, in

the event the sender provided an incorrect

account number or recipient institution

identifier, the sender could lose the transfer

amount.

iv. the incorrect account number or recipient

institution identifier resulted in the deposit of

the remittance transfer into a customer’s

account that is not the designated recipi-

ent’s account; and

v. promptly used reasonable efforts to recover

the amount that was to be received by the

designated recipient.

Account number or recipient institution identifier.

Account number and recipient institution identifier

refer to alphanumerical account or institution iden-

tifiers other than names or addresses, such as

account numbers, routing numbers, Canadian

transit numbers, International Bank Account Num-

bers, Business Identifier Codes, and other similar

Electronic Fund Transfer Act

30 (11/13) • Reg. E Consumer Compliance Handbook

account or institution identifiers used to route a

transaction. Designated recipient’s account refers

to an asset account but does not include a credit

card, prepaid card, or a virtual account held by an

Internet-based or mobile telephone company that

is not a bank, savings association, credit union, or

equivalent institution (Comment 33(a)-8).

Reasonable methods of verification. Reasonably

available means may include accessing a directory

of Business Identifier Codes and verifying that the

code provided by the sender matches the provided

institution name, and, if possible, the specific

branch or location provided by the sender. A

provider may also rely on other commercially

available databases or directories to check other

recipient institution identifiers. The requirement to

verify would be met if no reasonably available

means exist to verify the accuracy of the recipient

institution identifier if the other conditions are

satisfied (Comment 33(h)-1).

Reasonable efforts. Whether a provider has used

reasonable efforts does not depend on whether the

provider is ultimately successful in recovering the

amount that was to be received by the designated

recipient. If the remittance transfer provider is

requested to provide documentation or other

supporting information in order for the pertinent

institution or authority to obtain the proper authori-

zation for the return of the incorrectly credited

amount, reasonable efforts to recover the amount

include timely provision of any such documentation

to the extent that it is available and permissible

under law (Comment 33(h)-2).

Promptness of reasonable efforts. Whether a

provider acts promptly to use reasonable efforts

depends on the facts and circumstances. For

example, if, before the disclosed date of availability

the sender informs the provider that the sender

provided a wrong account number, the provider

will have acted promptly if it attempts to contact the

recipient’s institution before the date of availability

(Comment 33(h)-3).

Failure to make funds available by disclosed

date of availability due to circumstances outside

the remittance transfer provider’s control. A remit-

tance transfer provider’s failure to deliver or

transmit a remittance transfer by the disclosed date

of availability is not an error if such failure was

caused by extraordinary circumstances outside the

remittance transfer provider’s control that could not

have been reasonably anticipated. Examples of

such circumstances include war or civil unrest,

natural disaster, garnishment or attachment of

funds after the transfer is sent, and government

actions or restrictions that could not have been

reasonably anticipated by the remittance transfer

provider, such as the imposition of foreign currency

controls (Comment 33(a)-6).

Issues that are not considered errors under

subpart B

The following are not errors:

a. an inquiry about the status of a remittance

transfer except where the funds from the

transfer were not made available to a desig-

nated recipient by the disclosed date of avail-

ability;

b. a request for information for tax or other

record-keeping purposes;

c. a change requested by the designated recipi-

ent that the remittance transfer provider or

others involved in the remittance transfer de-

cide to accommodate; or

d. a change in the amount or type of currency

received by the designated recipient from the

amount or type of currency stated in the

disclosure provided to the sender if the remit-

tance transfer provider relied on information

provided by the sender (12 CFR 1005.33(a)(2)

and Comment 33(a)-10).

Notice of Error from Sender—12 CFR

1005.33(b)

Person asserting or discovering error. The error

resolution procedures apply only when a notice of

error is received from the sender (Comment

33(b)-1).

Timing of error notice. The notice of error must be

received by the remittance transfer provider within

180 days of the disclosed date of availability of the

remittance transfer (12 CFR 1005.33(b)(1)). But if

the notice of error is based on documentation,

additional information, or clarification provided by

the remittance transfer provider, then notice is

timely if it is received by the remittance transfer

provider the later of

a. 180 days after the disclosed date of availability

of the remittance transfer, or

b. 60 days after the provider sent the documenta-

tion, information, or clarification that had been

requested (12 CFR 1005.33(b)(2)).

Content of error notice. Errors may be reported

orally or in writing. The notice of error is effective so

long as the remittance transfer provider is able to

identify

a. the sender’s name and telephone number or

address (or e-mail address);

b. the recipient’s name and, if known, telephone

number and address;

c. the remittance transfer to which the notice of

error applies; and

d. why the sender believes an error exists and, if

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 31 (11/13)

possible, the type, date, and amount of the

error, except for errors involving requests for

documentation, additional information, or clari-

fication.

For example, the sender could provide the

confirmation number or code that would be used

by the designated recipient to pick up the transfer,

or other identification number or code supplied by

the remittance transfer provider in connection with

the transfer, if the number or code is sufficient for

the remittance transfer provider to identify the

sender (and contact information), designated re-

cipient, and the transfer in question (Comment

33(b)-2 and 3).

Effect of late notice. A remittance transfer

provider is not required to comply with the error

resolution requirements for any notice of error from

a sender that is received more than 180 days from

the disclosed date of availability of the remittance

transfer or, if applicable, more than 60 days after a

provider sent documentation, additional informa-

tion, or clarification requested by the sender

(Comment 33(b)-4).

Notice of error provided to agent. A notice of

error provided by a sender to an agent of the

remittance transfer provider is deemed to be

received by the provider when the agent receives it

(Comment 33(b)-5).

Consumer notice of error resolution rights. In

addition to the requirement to provide an abbrevi-

ated notice of the consumer’s error resolution rights

on the receipt or combined notice, the remittance

transfer provider must make available to a sender,

upon request, a notice providing a full description

of the sender’s error resolution rights, using

language set forth in Appendix A (Model Form

A-36) or substantially similar language (Comment

33(b)-6).

Time Limits and Extent of

Investigation—12 CFR 1005.33(c)

A remittance transfer provider must investigate

promptly and determine whether an error occurred

within 90 days of receiving a notice of error. The

remittance transfer provider must report the results

to the sender within three business days after

completing its investigation and include notice of

any remedies available for correcting any error that

the provider determines has occurred. If the

remittance transfer provider determines during its

investigation that an error occurred as described

by the sender, the remittance provider may inform

the sender of its findings either orally or in writing.

However, if the provider determines that no error or

a different error occurred, the provider must

provide a written explanation of the findings, and

note the sender’s right to request the documents on

which the provider relied in making its determina-

tion (Comment 33(c)-1).

Remedies

If the remittance transfer provider determines an

error (as defined in subpart B) occurred and the

error relates to

a. an incorrect amount paid by the sender,

b. a computational or bookkeeping error made by

the remittance transfer provider, or

c. failure to make the amount of currency stated in

the disclosures available to the designated

recipient.

the provider must either

a. refund the amount of funds provided by the

sender in connection with a remittance transfer

which was not properly transmitted or the

amount appropriate to resolve the error, or

b. make available to the designated recipient, the

amount appropriate to resolve the error without

additional cost to the sender or the designated

recipient (12 CFR 1005.33(c)(2)(i)).

If the error relates to a sender’s request for

documentation or additional information or clarifi-

cation to determine whether an error exists, the

remittance transfer provider must provide the

requested information (12 CFR 1005.33(c)(2)(iv)).

Remedy in the case of failure to make funds

available by the disclosed date of

availability.

a. Where failure to make funds available by the

disclosed date of availability occurred due to

incorrect or insufficient information provided by

the sender:

The remittance transfer provider is required to

refund to the sender the amount of funds that

was not properly transmitted, or the amount

appropriate to resolve the error, within three

business days of providing the written explana-

tion of findings. However, the provider may

agree to the sender’s request, upon receiving

the results of the error investigation, to apply the

funds toward a new remittance transfer, rather

than be refunded, if the provider has not yet

processed a refund.

In such an instance, the provider may deduct

from the amount refunded or applied toward a

new transfer any fees actually imposed by a

person other than the provider (except those

that will ultimately be refunded to the provider)

on or, to the extent not prohibited by law, taxes

actually collected on the remittance transfer as

part of the first unsuccessful remittance transfer

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32 (11/13) • Reg. E Consumer Compliance Handbook

attempt and inform the sender of the deduction

and reason. The agreement to apply the funds

toward a new transfer is treated as a new

remittance transfer, and the provider must

provide new disclosures in accordance with 12

CFR 1005.31 and all other applicable provi-

sions of subpart B (12 CFR 1005.33(c)(2)(iii))

and Comments 33(c)-11 and -12).

b. All other instances of failure to make funds

available by the disclosed date of availability:

As applicable, the remittance transfer provider

must either

i. refund to the sender, the amount of funds

which was not properly transmitted or the

amount appropriate to resolve the error; or

ii. make available to the designated recipient

the amount appropriate to resolve the error

without additional cost to the sender or to

the designated recipient; and

refund to the sender any fees imposed and,

to the extent not prohibited by law, taxes

collected on the remittance transfer (12

CFR 1005.33(c)(2)(ii).

Designation of requested remedy. The provider

may request that the sender indicate the preferred

remedy when providing the notice of the error. If the

provider does so, it should indicate that a resend

remedy may be unavailable if the error occurred

because the sender provided incorrect or insuffi-

cient information. If the sender does not indicate

the desired remedy at the time of providing notice

of error, the remittance transfer provider must notify

the sender of any available remedies in the written

explanation of findings (Comment 33(c)-3).

Default remedy (except where the sender pro-

vided incorrect or insufficient information). The

provider may set a default remedy that the

remittance transfer provider will use if the sender

does not designate a remedy within a reasonable

time after receiving the written explanation of

findings. If a default remedy is provided, the

remittance transfer provider must correct the error

within one business day or as soon as reasonably

practicable, after the reasonable time for the

sender to designate the remedy has passed. For

purposes of designating a remedy, 10 days is

deemed a reasonable time (Comment 33(c)-4).

Amount appropriate to resolve the error. The

amount appropriate to resolve the error is the

specific amount of transferred funds that should

have been received if the remittance transfer had

taken place without error. It does not include

consequential damages (Comment 33(c)-5).

Form of refund. Where a refund may be issued, a

remittance transfer provider may generally, at its

discretion, issue a refund either in cash or in the

same form of payment that was initially provided by

the sender for the remittance transfer (Comment

33(c)-6).

Remedies for incorrect amount paid. If an error

relates to the payment of an incorrect amount, the

sender may request a refund of the amount

necessary to resolve the error or request that the

remittance transfer provider make the amount

necessary to resolve the error available to the

designated recipient at no additional cost (Com-

ment 33(c)-7).

Correction of an error if funds were not not

available by disclosed date. If the remittance

transfer provider determines an error related to

failure to make funds available by the disclosed

date occured, it must correct the error and refund

any fees imposed by the provider or a third party

involved in sending the transfer, such as an

intermediary bank involved in sending a wire

transfer or the institution from which the funds are

picked up (unless the sender provided incorrect or

insufficient information to the remittance transfer

provider in connection with the remittance transfer)

(Comment 33(c)-8).

Charges for error resolution. If an error occurred,

whether as alleged or in a different amount or

manner, the remittance transfer provider may not

impose a charge related to any aspect of the error

resolution process (including charges for documen-

tation or investigation) (Comment 33(c)-9).

Correction without investigation. A remittance

transfer provider may correct an error, without

investigation, in the amount or manner alleged by

the sender, or otherwise determined, to be in error,

but must comply with all other applicable require-

ments (Comment 33(c)-10).

Procedures if Remittance Transfer

Provider Determines No Error or

Different Error Occurred—12 CFR

1005.33(d)

If the remittance transfer provider determines that

no error occurred or that an error occurred in a

manner or amount different from that described by

the sender, its report of the results of the investiga-

tion must include a written explanation of the

provider’s findings and shall note the sender’s right

to request the documents on which it relied in

making its determination. The explanation should

also address the specific complaint of the sender.

Upon the sender’s request, the remittance transfer

provider must also promptly provide copies of the

documents on which it relied to make its error

determination (12 CFR 1005.33(d)).

Error different from that alleged. If a remittance

transfer provider determines that an error occurred

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 33 (11/13)

in a manner or amount different from that described

by the sender, it must comply with the requirements

of both 12 CFR 1005.33(c) (concerning the inves-

tigation) and (d) (procedures if remittance transfer

provider determines no error or different error

occurred), as applicable. The provider may give

the notice of correction and the explanation

separately or in a combined form (Comment

33(d)-1).

Reassertion of Error—12 CFR 1005.33(e)

A remittance transfer provider that has fully com-

plied with the error resolution requirements of this

section generally has no further responsibilities

should the sender later reassert the same error,

except in the case of an error asserted by the

sender following receipt of additional information

requested from the provider (12 CFR 1005.33(e)).

Withdrawal of error; right to reassert. The remit-

tance transfer provider has no further error resolu-

tion responsibilities if the sender voluntarily with-

draws the notice alleging an error. A sender who

has withdrawn an allegation of error has the right to

reassert the allegation unless the remittance trans-

fer provider had already complied with all of the

error resolution requirements before the allegation

was withdrawn. The sender must do so, however,

within the original 180-day period from the dis-

closed date of availability or, if applicable, the

60-day period for a notice of error based on

documentation or clarification that the sender

previously requested (Comment 33(e)-1).

Relation to Other Laws—12 CFR

1005.33(f)

Relation to Regulation E for incorrect EFTs from a

sender’s account (12 CFR 1005.11). If an alleged

error involves an incorrect electronic fund transfer

from a sender’s account in connection with a

remittance transfer, and the sender provides a

notice of error to the account-holding institution, the

requirements of 12 CFR 1005.11 governing error

resolution apply if the account-holding institution is

not also the remittance transfer provider. However,

if the remittance transfer provider is also the

account holding institution, then the error-resolution

provisions of 12 CFR 1005.33 apply when the

sender provides such notice of error (12 CFR

1005.33(f)(1)).

Concurrent error obligations. A remittance trans-

fer provider that holds the sender’s account may

have error obligations under both 12 CFR 1005.11

and 1005.33, depending on the relationship with

the sender and the nature of the error. For example,

if a sender asserts an error under 12 CFR 1005.11

with a remittance transfer provider that holds the

sender’s account, and the error is not also an error

under 12 CFR 1005.33 (such as the omission of an

EFT on a periodic statement), then the error-

resolution provisions of 12 CFR 1005.11 exclusively

apply to the error. However, if a sender asserts an

error under 12 CFR 1005.33 with a remittance

transfer provider that holds the sender’s account,

and the error is also an error under 12 CFR 1005.11

(such as when the amount the sender requested to

be deducted from the sender’s account and sent

for the remittance transfer differs from the amount

that was actually deducted from the account and

sent), then the error-resolution provisions of 12 CFR

1005.33 exclusively apply to the error (Comment

33(f)-1).

Relation to Truth in Lending Act and Regulation

Z. If an alleged error involves an incorrect exten-

sion of credit in connection with a remittance

transfer, an incorrect amount received by the

designated recipient that is an extension of credit

for property or services not delivered as agreed, or

the failure to make funds available by the disclosed

date of availability that is an extension of credit for

property or services not delivered as agreed, and

the sender provides a notice of error to the creditor

extending the credit, the error resolution provisions

of Regulation Z, 12 CFR 1026.13 apply to the

creditor, rather than the requirements of 12 CFR

1005.33, even if the creditor is the remittance

transfer provider. However, if the creditor is the

remittance transfer provider, the error resolution

requirements of 12 CFR 1005.33(b) will apply

instead of 12 CFR 1026.13(b). If the sender instead

provides a notice of error to the remittance transfer

provider that is not also the creditor, then the

error-resolution provisions of 12 CFR 1005.33 apply

to the remittance transfer provider (12 CFR 1005.33

(f)(2)).

Unauthorized remittance transfers. If an alleged

error involves an unauthorized electronic fund

transfer for payment in connection with a remit-

tance transfer, 12 CFR 1005.6 and 1005.11 apply

with respect to the account-holding institution. If an

alleged error involves an unauthorized use of a

credit account for payment in connection with a

remittance transfer, the provisions of Regulation Z,

12 CFR 1026.12(b), if applicable, and 12 CFR

1026.13, apply with respect to the creditor (12 CFR

1005.33(f)(3)).

Holder in due course. The error resolution

provisions in subpart B do not affect a sender’s

rights to assert claims and defenses against a card

issuer concerning property or services purchased

with a credit card under Regulation Z, 12 CFR

1026.12(c)(1), as applicable (Comment 33(f)-2).

Assertion of the same error with multiple parties.

If a sender receives credit to correct an error of an

incorrect amount paid in connection with a remit-

Electronic Fund Transfer Act

34 (11/13) • Reg. E Consumer Compliance Handbook

tance transfer from either the remittance transfer

provider or account-holding institution (or creditor),

and subsequently asserts the same error with

another party, that party has no further responsibili-

ties to investigate the error if the error has been

corrected. In addition, nothing prevents an account-

holding institution or creditor from reversing

amounts it has previously credited to correct an

error if a sender receives more than one credit to

correct the same error (Comment 33(f)-3).

Error Resolution Standards and

Recordkeeping Requirements—12 CFR

1005.33(g)

Compliance program. A remittance transfer pro-

vider must develop and maintain written policies

and procedures that are designed to ensure

compliance with the error resolution requirements

applicable to remittance transfers.

Policies and procedures must address the

retention of records related to error investigations

(12 CFR 1005.33(g)(1) and (2)).

Record retention requirements. Remittance trans-

fer providers are subject to the record retention

requirements under subpart A (12 CFR 1005.13

and Comment 33(g)-1). See also section XVIII

below.

XIV. Procedures for Cancellation and

Refund of Remittance Transfers—

12 CFR 1005.34

Sender’s right of cancellation and refund

Except for certain remittance transfers scheduled

in advance subject to 12 CFR 1005.36(c), a

remittance transfer provider generally must comply

with any oral or written request to cancel a

remittance transfer from the sender that is received

by the provider no later than 30 minutes after the

sender makes payment in connection with the

remittance transfer if

a. the request to cancel enables the provider to

identify the sender’s name and address or

telephone number and the particular transfer to

be cancelled; and

b. the transferred funds have not been picked up

by the designated recipient or deposited into an

account of the designated recipient (12 CFR

1005.34(a)).

Content of cancellation request. A request to

cancel a remittance transfer is valid so long as the

remittance transfer provider is able to identify the

remittance transfer in question (Comment 34(a)-1).

Notice of cancellation right. A remittance transfer

provider is required to include an abbreviated

notice of the sender’s right to cancel a remittance

transfer on the receipt or combined disclosure

provided to the sender. In addition, the remittance

transfer provider must make available to a sender

upon request, a notice providing a full description

of the right to cancel a remittance transfer (Com-

ment 34(a)-2). See also Model Form 36 in Appendix

Thirty-minute cancellation right. Except for cer-

tain remittance transfers scheduled in advance

subject to 12 CFR 1005.36(c), a remittance transfer

provider must comply with the cancellation and

refund requirements if the cancellation request is

received no later than 30 minutes after the sender

makes payment (Comment 34(a)-3).

Cancellation request provided to agent. A can-

cellation request provided by a sender to an agent

of the remittance transfer provider is deemed to be

received by the provider when received by the

agent (Comment 34(a)-4).

Time limits and refund requirements. If a sender

provides a timely request to cancel a remittance

transfer, a remittance transfer provider must, within

three business days of receiving the request,

refund all funds provided by the sender in connec-

tion with the remittance transfer, including any fees

and, to the extent not prohibited by law, taxes that

have been imposed for the transfer, whether the fee

or tax was assessed by the provider or a third

party, such as an intermediary institution, the agent

or bank in the recipient country, or a state or other

governmental body (12 CFR 1005.34(b) and Com-

ment 34(b)-2).

Form of refund. A remittance transfer provider

generally may issue a refund either in cash or in the

same form of payment that was initially provided by

the sender for the remittance transfer (Comment

34(b)-1).

XV. Acts of Agents—12 CFR 1005.35

A remittance transfer provider is strictly liable for a

violation by an agent, when such agent acts on its

behalf. Remittance transfer providers must comply

with the requirements of subpart B, even if an agent

or other person performs functions for the remit-

tance transfer provider and regardless of whether

the provider has an agreement with a third party

that transfers or otherwise makes funds available to

a designated recipient (12 CFR 1005.35 and

Comment 35-1).

Agencies responsible for enforcing the require-

ments of EFTA section 919 and subpart B of

Regulation E may consider, in any action or other

proceeding against a remittance transfer provider,

the extent to which the provider had established

and maintained policies or procedures for compli-

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 35 (11/13)

ance, including policies, procedures, or other

appropriate oversight measures designed to as-

sure compliance by an agent or authorized del-

egate acting for such provider (EFTA section

919(f)(2)).

XVI. Transfers Scheduled before the

Date of Transfer—12 CFR 1005.36

Applicability of subpart B. The requirements set

forth in subpart B apply to remittance transfers

scheduled before the transfer date, unless modi-

fied by 12 CFR 1005.36. For example, the foreign

language disclosure requirements apply to disclo-

sures provided in connection with transfers sched-

uled in advance (Comment 36-1).

Timing—12 CFR 1005.36(a)

For one-time transfers scheduled five or more

business days in advance or for the first in a series

of transfers authorized in advance to recur at

substantially regular intervals (preauthorized remit-

tance transfers), the remittance transfer provider

must provide either a prepayment disclosure and a

receipt or a combined disclosure at the time the

sender requests the transfer but prior to payment. If

any of the disclosures provided contain estimates,

the provider must mail or deliver an additional

receipt no later than one business day after the

date of the transfer. If the transfer involves the

transfer of funds from the sender’s account held by

the provider, this additional receipt may be pro-

vided on or with the next periodic statement for that

account or within 30 days after the date of the

transfer if a periodic statement is not provided.

Subsequent preauthorized remittance transfers.

For each subsequent preauthorized remittance

transfer, the provider must provide an updated

receipt if any of the information (other than temporal

disclosures) on the most recent receipt is no longer

accurate for reasons other than as permitted in the

estimates provisions of 12 CFR 1005.32. The

receipt must clearly and conspicuously indicate

that it contains updated disclosures and must be

mailed or delivered to the sender within a reason-

able time prior to the scheduled date of the next

subsequent preauthorized remittance transfer. If

the disclosure is mailed no later than 10 business

days or delivered by hand or electronically no later

than 5 business days before the scheduled date of

the transfer, the provider is deemed to have

provided the disclosure within a reasonable time

(12 CFR 1005.36(a)(2)(i) and Comments 36(a)

(2)-1, -2, and -3).

For each subsequent preauthorized transfer, the

remittance transfer provider must mail or deliver to

the sender a receipt no later than one business day

after the date of the transfer. This is not required in

situations where an updated receipt that contained

no estimates was provided prior to the scheduled

date of the next subsequent preauthorized remit-

tance transfer. If the remittance transfer involves

the transfer of funds from the sender’s account held

by the provider, the receipt may be provided on or

with the next periodic statement for that account, or

within 30 days after the date of the transfer if a

periodic statement is not provided (12 CFR 1005.36

(a)(2)(ii)).

Accuracy—12 CFR 1005.36(b)

For a one-time transfer scheduled five or more

business days in advance or for the first in a series

of preauthorized remittance transfers, disclosures

provided must be accurate when a sender makes

payment except to the extent estimates are permit-

ted. Unless estimates are permitted, for each

subsequent preauthorized remittance transfer, the

most recent receipt provided must generally be

accurate as of when such transfer is made except

to the extent estimates are permitted. Temporal

elements in the disclosures like the date of

availability and the transfer date must only be

accurate if the transfer is the first transfer after the

disclosure was provided (12 CFR 1005.36(b)).

Cancellation—12 CFR 1005.36(c)

Cancellation of transfers scheduled at least three

days in advance. A remittance transfer provider

must comply with any oral or written request to

cancel any remittance transfer scheduled by the

sender at least three business days before the date

of the remittance transfer if the request to cancel

a. enables the provider to identify the sender’s

name and address or telephone number and

the particular transfer to be cancelled, and

b. is received by the provider at least three

business days before the scheduled date of the

remittance transfer (12 CFR 1005.36(c)).

The right of cancellation applies when a remit-

tance transfer is scheduled by the sender at least

three business days before the date of the transfer,

regardless of whether the sender schedules a

preauthorized remittance transfer or a one-time

transfer. For transfers scheduled less than three

business days before the date of transfer the 30

minute cancellation deadline in 12 CFR 1005.34

applies (Comment 36(c)-1).

Cancelled preauthorized remittance transfers.

For preauthorized remittance transfers, the pro-

vider must assume the request to cancel applies to

all future preauthorized remittance transfers, unless

the sender specifically indicates that it should

apply only to the next scheduled transfer (Com-

ment 36(c)-2).

Electronic Fund Transfer Act

36 (11/13) • Reg. E Consumer Compliance Handbook

Concurrent cancellation obligations. A financial

institution that is also a remittance transfer provider

may have both stop payment obligations under 12

CFR 1005.10 and cancellation obligations under 12

CFR 1005.36. If a sender cancels a remittance

transfer under 12 CFR 1005.36 with a remittance

transfer provider that holds the sender’s account,

and the transfer is a preauthorized transfer, 12 CFR

1005.36 applies exclusively (Comment 36(c)-3).

Additional Requirements for Subsequent

Preauthorized Remittance Transfers—

12 CFR 1005.36(d)

Disclosure requirement. For any subsequent trans-

fer in a series of preauthorized remittance transfers,

the remittance transfer provider must disclose

a. the date of the subsequent transfer using the

term ‘‘Future Transfer Date’’ or a substantially

similar term,

b. a statement of the sender’s cancellation rights,

and

c. the name, telephone number(s), and website of

the remittance transfer provider (12 CFR

1005.36(d)(1)).

The disclosures must be provided no more than

12 months, and no less than 5 business days prior

to, the date of the subsequent preauthorized

remittance transfer. For any subsequent preautho-

rized remittance transfer for which the date of

transfer is 4 or fewer business days after the date

payment is made, the disclosure must generally be

provided on or with the receipt for the initial transfer

in that series (12 CFR 1005.36(d)(2)).

A remittance transfer provider has some flexibil-

ity in determining how and when the disclosures

required by 12 CFR 1005.36(d)(1) may be provided

to senders. They may be provided as a separate

disclosure, or on or with any other disclosure

required by subpart B related to the same series of

preauthorized remittance transfers, provided that

the disclosure and timing requirements in 12 CFR

1005.36(d)(2) and other applicable provisions in

subpart B are satisfied (Comment 36(d)-1).

If any of the information provided in these

disclosures change, the provider must provide an

updated disclosure with the revised information

that is accurate as of when the transfer is made (12

CFR 1005.36(d)(1) and (4) and Comments 36(d)-2,

-3 and -4).

For any subsequent preauthorized remittance

transfer, the future date of transfer must be

provided on any receipt provided for the initial

transfer in that series of preauthorized remittance

transfers. If the provider discloses the dates of

subsequent preauthorized remittance transfers and

the applicable cancellation period on either the

receipt provided when payment is made or on a

second receipt, the disclosure must be phrased

and formatted in such a way that it is clear to the

sender which cancellation period is applicable to

any date of transfer on the receipt (Comments

31(b)(2)-4 and -5).

THE FOLLOWING SECTIONS ARE

APPLICABLE TO BOTH SUBPART A

AND SUBPART B.

XVII. Preemption

The EFTA and Regulation E preempt inconsistent

state laws but only to the extent of the inconsis-

tency. The CFPB is given the authority to determine

whether or not a state law is inconsistent. An entity,

state, or other interested party may request the

CFPB to make such a determination. A state law will

not be deemed inconsistent if it is more protective

of the consumer than the EFTA or Regulation E.

Upon application, the CFPB has the authority to

exempt any state from the requirements of the

EFTA or the regulation for any class of EFTs within

a state, with the exception of the civil liability

provision (EFTA section 922 and 12 CFR 1005.12(b)

and (c)).

XVIII. Administrative Enforcement

and Record Retention—12 CFR

1005.13

Section 918 of the EFTA sets forth the federal

agencies responsible for enforcing compliance

with the provisions of the law and its implementing

regulation.

Record retention. Any person subject to the

EFTA and Regulation E must maintain evidence of

compliance with the EFTA and Regulation E for at

least two years from the date the disclosures are

required to be made or action is required to be

taken. The agency supervising the person may

extend this period. The period may also be

extended if the person is subject to an action filed

under Sections 910, 915, or 916(a) of the EFTA,

which generally apply to the person’s liability under

the EFTA and Regulation E. Persons subject to the

EFTA who have actual notice that they are being

investigated or subject to an enforcement proceed-

ing must retain records until disposition of the

proceeding (12 CFR 1005.13 and 1005.33(g)).

Records may be stored on microfiche, microfilm,

magnetic tape, or in any other manner capable of

accurately retaining and reproducing the informa-

tion.

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 37 (11/13)

XIX. Miscellaneous

The EFTA contains several additional provisions

that are not directly reflected in the language of

Regulation E. Most significantly, 15 U.S.C. 1693l

provides that the consumer may not waive by

agreement any right conferred, or cause of action

created, by the EFTA. However, the consumer and

another person may provide by agreement greater

consumer protections or additional rights or rem-

edies than those provided by the EFTA. In addition,

the consumer may sign a waiver in settlement of a

dispute.

If a third-party payee has agreed to accept

payment by EFT, the consumer’s obligation to pay

is suspended during any period in which a system

malfunction prevents an EFT from occurring (15

U.S.C. 1693j). However, the payee may avoid that

suspension by making a written request for pay-

ment by means other than EFT.

Failure to comply with the requirements of the

EFTA can result in civil and criminal liability, as

outlined in 15 U.S.C. 1693m and 15 U.S.C. 1693n.

Financial institutions may also be liable for dam-

ages under 15 U.S.C. 1693h due to failure to

complete an EFT or failure to stop a preauthorized

transfer when instructed to do so.

Appendix A—Model Disclosure

Clauses and Forms—12 CFR 1005

Appendix A of Regulation E contains model

clauses and forms that entities may use to comply

with the requirement disclosure requirements of

Regulation E. Use of the model forms is optional

and an entity may make certain changes to the

language or format of the model forms without

losing the protection from civil and criminal liability

under Sections 915 and 916 of the EFTA. The

model forms are

For subpart A:

A-1 Model Clauses for Unsolicited Issuance (12

CFR 1005.5(b)(2))

A-2 Model Clauses for Initial Disclosures (12 CFR

1005.7(b))

A-3 Model Forms for Error Resolution Notice (12

CFR 1005.7(b)(10) and 1005.8(b))

A-4 Model Form for Service-Providing Institutions

(12 CFR 1005.14(b)(1)(ii))

A-5 Model Forms for Government Agencies (12

CFR 1005.15(d)(1) and(2))

A-6 Model Clauses for Authorizing One-Time Elec-

tronic Fund Transfers Using Information from a

Check (12 CFR 1005.3(b)(2))

A-7 Model Clauses for Financial Institutions Offer-

ing Payroll Card Accounts (12 CFR 1005.18

(c))

A-8 Model Clause for Electronic Collection of

Returned Item Fees (12 CFR 1005.3(b)(3))

A-9 Model Consent Form for Overdraft Services

(12 CFR 1005.17)

For subpart B:

A-30(a) Model Form for Prepayment Disclosures

for Remittance Transfers Exchanged into

Local Currency, including a disclaimer

where non-covered third-party fees and

foreign taxes may apply (12 CFR 1005.31

(b)(1))

A-30(b) Model Form for Prepayment Disclosures

for Remittance Transfers Exchanged into

Local Currency, including a disclaimer

with estimate for non-covered third-party

fees (12 CFR 1005.31(b)(1) and 12 CFR

1005.32(b)(3))

A-30(c) Model Form for Prepayment Disclosures

for Remittance Transfers Exchanged into

Local Currency, including a disclaimer

with estimate for foreign taxes (12 CFR

1005.31(b)(1) and 12 CFR 1005.32(b)(3))

A-30(d) Model Form for Prepayment Disclosures

for Remittance Transfers Exchanged into

Local Currency, including a disclaimer

with estimates for non-covered third-party

fees and foreign taxes (12 CFR 1005.31

(b)(1) and 12 CFR 1005.32(b)(3))

A-31 Model Form for Receipts for Remittance

Transfers Exchanged into Local Currency (12

CFR 1005.31(b)(2))

A-32 Model Form for Combined Disclosures for

Remittance Transfers Exchanged into Local

Currency (12 CFR 1005.31(b)(3))

A-33 Model Form for Prepayment Disclosures for

Dollar-to-Dollar Remittance Transfers (12 CFR

1005.31(b)(1))

A-34 Model Form for Receipts for Dollar-to-Dollar

Remittance Transfers (12 CFR 1005.31(b)(2))

A-35 Model Form for Combined Disclosures for

Dollar-to-Dollar Remittance Transfers (12 CFR

1005.31(b)(3))

A-36 Model Form for Error Resolution and Cancel-

lation Disclosures (Long) (12 CFR 1005.31(b)

(4))

A-37 Model Form for Error Resolution and Cancel-

lation Disclosures (Short) (12 CFR 1005.31(b)

(2)(iv) and (b)(2)(vi))

Electronic Fund Transfer Act

38 (11/13) • Reg. E Consumer Compliance Handbook

A-38 Model Form for Prepayment Disclosures for

Remittance Transfers Exchanged into Local

Currency—Spanish (12 CFR 1005.31(b)(1))

A-39 Model Form for Receipts for Remittance

Transfers Exchanged into Local Currency—

Spanish (12 CFR 1005.31(b)(2))

A-40 Model Form for Combined Disclosures for

Remittance Transfers Exchanged into Local

Currency—Spanish (12 CFR 1005.31(b)(3))

A-41 Model Form for Error Resolution and Cancel-

lation Disclosures (Long)—Spanish (12 CFR

1005.31(b)(4))

References

Laws

15 U.S.C. 1693 et seq., Electronic Fund Transfer

Act

15 U.S.C. 7001 et seq., Electronic Signatures in

Global and National Commerce

Regulations

Consumer Financial Protection Bureau

Regulations (12 CFR)

Part 1005 Electronic Fund Transfers (Regulation E)

Electronic Fund Transfer Act

Consumer Compliance Handbook Reg. E • 39 (11/13)

Electronic Fund Transfer Act

Examination Procedures

These examination procedures are divided into

three sections:

• Section I covers management and policy related

procedures for both financial institutions and

other entities that may be remittance transfer

providers (referred to herein as ‘‘entity’’).

• Section II covers electronic fund transfers con-

ducted by financial institutions.

• Section III applies to remittance transfer provid-

ers (including financial institutions).

Each examination should be risk-based and may

not require an examiner to complete all three

sections. In addition, each agency may have its

own supervisory strategy that will dictate which

sections of these examination procedures are

required to be completed.

EXAMINATION OBJECTIVES

In general, a Regulation E examination is con-

ducted to

A. determine the entity’s compliance with Regula-

tion E

B. assess the quality of the entity’s compliance risk

management systems and its policies and

procedures for implementing Regulation E

C. determine the level of reliance that can be

placed on the entity’s internal controls and

procedures for monitoring the entity’s compli-

ance with Regulation E

D. as appropriate, direct corrective action when

violations of law are identified or when the

entity’s policies or internal controls are deficient

EXAMINATION PROCEDURES

Section I—Management and

policy-related examination

procedures

1. Through a review of all available information

(e.g., board minutes, management reports, moni-

toring reports, etc.) and discussions with man-

agement, determine that the board and manage-

ment have set clear expectations about

compliance with Regulation E, not only within the

entity but also concerning key business part-

ners, including agents, correspondent banks,

and software providers, to the extent relevant.

2. Through a review of all available information

(e.g., written policies and procedures, manage-

ment’s self-assessments, customer complaints,

prior examination reports) and any compliance

audit material, including work papers and re-

ports, determine whether

a. there are any weaknesses or other risks in

the business model

b. the scope of the audit addresses all provi-

sions of Regulation E as applicable

c. the scope of the audit addresses all key

business processes and functions, including

those carried out by third-party service

providers or key business partners, as ap-

propriate

d. management has taken corrective actions to

follow up on previously identified deficien-

cies

e. as applicable, testing includes risk-based

samples covering product types and deci-

sion centers

f. there is an audit trail that supports the

findings and conclusions of the work per-

formed

g. significant deficiencies and their causes are

included in reports to management and/or to

the board of directors or principal(s)

h. the frequency of review is appropriate

3. Through discussions with management and

review of available information, determine

whether the entity’s internal controls are ad-

equate to ensure compliance with respect to the

Regulation E area under review. Consider among

other things

a. organizational charts;

b. process flowcharts;

c. policies and procedures;

d. account (if applicable) and transaction docu-

mentation;

e. checklists; and

f. computer program documentation.

4. Through a review of the entity’s training materials

and discussions with management, determine

whether:

a. the entity provides appropriate training to

employees and other persons responsible

for Regulation E compliance and operational

procedures

b. the training is comprehensive and covers the

Consumer Compliance Handbook Reg. E • 41 (11/13)

sections of Regulation E that apply to the

individual entity’s product offerings and op-

erations including, to the extent appropriate,

those functions carried out by third-party

service providers or other business partners,

such as agents and correspondent banks

Section II—Subpart A

Based on the materials reviewed within Section I,

and as applicable, complete Section II to deter-

mine the financial institution’s compliance with

Regulation E.

Transaction-related examination procedures

Conduct transaction testing, using the following

examination procedures:

1. Obtain and review copies of the following:

a. disclosure forms;

b. advertising and scripts for overdraft opt-ins;

c. account agreements;

d. procedural manuals and written policies;

e. merchant agreements;

f. automated teller machine receipts and

periodic statements;

g. error resolution statements/files;

h. form letters used in case of errors or

questions concerning an account;

i. any agreements with third parties allocating

compliance responsibilities; and

j. consumer complaint files.

Policies and procedures

2. Determine the extent and adequacy of the

financial institution’s policies, procedures, and

practices for ensuring compliance with the

regulation. In particular, verify that

a. access devices are issued in compliance

with the regulation (12 CFR 1005.5(b))

b. required disclosures are given at time the

account is opened or prior to the first

electronic funds transfer (‘‘EFT’’) (12 CFR

1005.4 and 1005.7(c))

c. unauthorized transfer claims are processed

in compliance with the regulation (12 CFR

1005.6 and 1005.11)

d. liability for unauthorized transfer claims is

assessed in compliance with the regulation

(12 CFR 1005.6)

e. negligence is not a factor in determining

customer liability. The deposit agreement

may not impose greater liability than Regu-

lation E provides but may provide for less

consumer liability (12 CFR 1005.6).

f. preauthorized debits and credits comply

with the regulation (12 CFR 1005.10)

Disclosures, notices, receipts, periodic

statements, and preauthorized transfers

3. If the financial institution has changed the

terms or conditions of initial disclosures for EFT

services since the last examination that re-

quired a written notice to the customer, deter-

mine that the institution provided the proper

notice in a timely manner (12 CFR 1005.8(a)).

4. Review a sample of periodic statements for

each type of account in which electronic fund

transfers occur to determine that they contain

sufficient information for the consumer to

identify transactions adequately and that they

otherwise comply with regulatory requirements

(12 CFR 1005.9).

5. Verify that the financial institution does not

require compulsory use of EFTs, except as

authorized (12 CFR 1005.10(e)).

6. For unauthorized transfers, lost or stolen ATM

cards, and EFT consumer complaints, and their

respective periodic statements, determine

whether:

a. the financial institution is incompliance with

its error resolution procedures to isolate any

apparent deficiencies in the financial insti-

tution’s operations to ensure that the insti-

tution follows its policies for unauthorized

transfers (12 CFR 1005.6 and 1005.11)

b. the financial institution investigates alleged

errors and notifies consumers of the results

within allotted time frames and, when ap-

propriate, provisionally re-credits the ac-

count (12 CFR 1005.11(c))

c. the financial institution follows regulatory

procedures after it completes its investiga-

tion and determines either that an error

occurred (12 CFR 1005.11(c)(1)) or that no

error occurred (12 CFR 1005.11(d))

7. Review ATM and point-of-sale transfer receipts

to determine whether they provide a clear

description of the transaction (12 CFR 1005.9

(a)).

8. Determine that the financial institution is main-

taining records of compliance for a period of

not less than two years from the date disclo-

sures are required to be made or action is

Electronic Fund Transfer Act: Examination Procedures

42 (11/13) • Reg. E Consumer Compliance Handbook

required to be taken (12 CFR 1005.13(b)).

Payroll cards and ATMs

9. If the financial institution maintains payroll card

accounts and does not provide periodic state-

ments under 12 CFR 1005.9(b) for these

accounts, verify that the institution makes

available the account balance by telephone, an

electronic history of account transactions, and

(upon request) a written history of account

transactions (12 CFR 1005.18(b)).

10. If the financial institution maintains payroll card

accounts, verify that the financial institution

complies with the modified requirements with

respect to the required initial disclosures, error

resolution notices, limitations on liability, and

error resolution procedures (12 CFR 1005.18

(c)).

11. If the financial institution operates one or more

ATMs for which it charges a fee for use,

determine that the financial institution provides

notice of the fee and the amount of the fee on

the screen of the ATM or on paper before the

consumer is committed to paying the fee (12

CFR 1005.16).

Overdrafts

12. Determine that the financial institution holding a

consumer’s account does not assess a fee or

charge on a consumer’s account for paying an

ATM or one-time debit card transaction pursu-

ant to the institution’s overdraft service,

unless the institution (12 CFR 1005.17(b)(1))

a. provides the consumer with a notice in

writing (or if the consumer agrees, electroni-

cally), that is segregated from all other

information and describes the institution’s

overdraft service;

b. provides a reasonable opportunity for the

consumer to affirmatively consent, or opt in,

to the service for ATM and one-time debit

card transactions;

c. obtains the consumer’s affirmative consent,

or opt-in, to the institution’s payment of ATM

or one-time debit card transactions; and

d. provides the consumer with confirmation of

the consumer’s consent in writing (or if the

consumer agrees, electronically), which

includes a statement informing the con-

sumer of the right to revoke such consent.

NOTE: An institution does not have to meet the

notice requirements described above if it has a

policy and practice of declining to authorize and

pay any ATM or one-time debit card transactions

when it has a reasonable belief at the time of the

authorization request that the consumer does not

have sufficient funds available to cover the trans-

action. However, it is still prohibited from charging

fees for paying an ATM or one-time debit transac-

tion overdraft (12 CFR 1005, and Comment 1005.17

(b)-1(iv)).

13. Determine that in assessing overdraft fees for

consumers who have not opted in, the institu-

tion charges fees only for negative balances,

daily, or sustained overdraft, or similar fees,

when the negative balance is attributable in

whole or in part to checks, automated clearing

house (ACH) or other transactions not subject

to the fee prohibition, and that the fee is

assessed based on the date when the check is

paid into overdraft, not the date of the ATM or

one-time debit transaction (Comment 1005.17

(b)-9).

14. Determine that the financial institution does not

(12 CFR 1005.17(b)(2))

a. condition the payment of any overdrafts for

checks, ACH transactions, and other types

of transactions on the consumer affirma-

tively consenting to the institution’s pay-

ment of ATM and one-time debit card

transactions pursuant to the institution’s

overdraft service; or

b. decline to pay checks, ACH transactions,

and other types of transactions that over-

draw the consumer’s account because the

consumer has not affirmatively consented

to the institution’s overdraft service for ATM

and one-time debit card transactions.

15. Determine that the financial institution provides

to consumers who do not affirmatively consent

to the institution’s overdraft service for ATM and

one-time debit card transactions the same

account terms, conditions, and features that it

provides to consumers who affirmatively con-

sent, except for the overdraft service for ATM

and one-time debit card transactions (12 CFR

1005.17(b)(3)).

16. Ensure that the notice required by 12 CFR

1005.17(b)(1)(i) is substantially similar to Model

Form A-9 (Model Consent Form for Overdraft

Services), includes all applicable items in the

following list, and does not contain any addi-

tional information (12 CFR 1005.17(d) and

Comments 1005.17(d)-1 through 1005.17(d)-5):

a. Overdraft service. A brief description of the

19. The term ‘‘overdraft service’’ means a service under which

a financial institution assesses a fee or charge on a consumer’s

account held by the financial institution for paying a transaction

(including a check or other item) when the consumer has

insufficient or unavailable funds in the account (12 CFR 1005.17

(a)). ‘‘Overdraft service’’ does not include a service that transfers

funds from another account held by a consumer or a line of credit.

Electronic Fund Transfer Act: Examination Procedures

Consumer Compliance Handbook Reg. E • 43 (11/13)

financial institution’s overdraft service and

the types of transactions for which a fee or

charge for paying an overdraft may be

imposed, including ATM and one-time debit

card transactions.

b. Fees imposed. The dollar amount of any

fees or charges assessed by the financial

institution for paying an ATM or one-time

debit card transaction pursuant to the

institution’s overdraft service, including any

daily or other overdraft fees. If the amount of

the fee is determined on the basis of the

number of times the consumer has over-

drawn the account, the amount of the

overdraft, or other factors, the institution

must disclose the maximum fee that may be

imposed.

c. Limits on fees charged. The maximum

number of overdraft fees or charges that

may be assessed per day, or, if applicable,

that there is no limit.

d. Disclosure of opt-in right. An explanation of

the consumer’s right to affirmatively con-

sent to the financial institution’s payment of

overdrafts for ATM and one-time debit card

transactions pursuant to the financial insti-

tution’s overdraft service, including the

methods by which the consumer may

consent to the service; and

e. Alternative plans for covering overdrafts. If

the institution offers both a line of credit

subject to Regulation Z (12 CFR Part 1026)

and a service that transfers funds from

another account of the consumer held at

the institution to cover overdrafts, the insti-

tution must state in its opt-in notice that both

alternative plans are offered. If the institu-

tion offers one, but not the other, it must

state in its opt-in notice the alternative plan

that it offers. If the institution does not offer

either plan, it should omit the reference to

the alternative plans. If the financial institu-

tion offers additional alternatives for paying

overdrafts, it may (but is not required to)

disclose those alternatives.

NOTE: Permitted modifications and additional con-

tent. If applicable, the institution may modify the

content required by 12 CFR 1005.17(d) to indicate

that the consumer has the right to opt into, or opt

out of, the payment of overdrafts under the

institution’s overdraft service for other types of

transactions, such as checks, ACH transactions, or

automatic bill payments; to provide a means for the

consumer to exercise this choice; and to disclose

the associated returned-item fee and that addi-

tional merchant fees may apply. The institution may

also disclose the consumer’s right to revoke

consent. The response portion of Model Form A-9

may be tailored to the methods offered for opting in

and may include reasonable methods to identify

the account, such as a bar code.

17. Determine that, when two or more consumers

jointly hold an account, the financial institution

treats the affirmative consent of any of the joint

consumers as affirmative consent for that

account and treats a revocation of affirmative

consent by any of the joint consumers as

revocation of consent for that account (12 CFR

1005.17(e)).

18. Ensure that a consumer may affirmatively

consent to the financial institution’s overdraft

service at any time in the manner described in

the institution’s (12 CFR 1005.17(b)(1)(i)) no-

tice, and that a consumer may also revoke

consent at any time in the manner made

available to the consumer for providing con-

sent (12 CFR 1005.17(f)).

19. Determine that the financial institution imple-

ments a consumer’s revocation of consent as

soon as reasonably practicable (12 CFR 1005

(17)(f)).

20. Determine that a consumer’s affirmative con-

sent to the institution’s overdraft service is

effective until revoked by the consumer or until

the financial institution terminates the service

(12 CFR 1005.17(g)).

21. Determine that the financial institution’s over-

draft protection program incorporates your

agency’s guidance as applicable.

Gift card disclosures

22. Determine that the disclosures required by the

sections listed below are made on the certifi-

cate or card, or in the case of a loyalty, award,

or promotional gift card, on the card, code, or

other device:

a. 12 CFR 1005.20(a)(4)(iii) (loyalty, award, or

promotional gift card);

b. 12 CFR 1005.20(d)(2) (dormancy, inactivity,

or service fees);

c. 12 CFR 1005.20(e)(3) (expiration date or

phone and web regarding replacement);

and

d. 12 CFR 1005.20(f)(2) (phone and web

regarding fees).

NOTE: A disclosure made in an accompanying

terms and conditions document, on packaging

surrounding a certificate or card, or on a sticker or

other label affixed to the certificate or card does not

constitute a disclosure on the certificate or card.

If the certificate or card is electronic, determine

Electronic Fund Transfer Act: Examination Procedures

44 (11/13) • Reg. E Consumer Compliance Handbook

that disclosures are provided electronically on the

certificate or card provided to the consumer.

If an issuer provides a code or confirmation to a

consumer orally, determine that the issuer provides

to the consumer a written or electronic copy of the

code or confirmation promptly and the applicable

disclosures are provided on the written copy of the

code or confirmation (12 CFR 1005.20(c)(4)).

23. Determine that the following are stated, as

applicable, clearly and conspicuously on the

gift certificate, store gift card, or general-use

prepaid card:

a. the amount of any dormancy, inactivity, or

service fee that may be charged;

b. how often such fee may be assessed; and

c. that such fee may be assessed for inactivity

(12 CFR 1005.20(d)(2)).

24. Determine that the following disclosures and

information are provided in connection with a

gift certificate, store gift card, or general-use

prepaid card as applicable. For each type of

fee that may be imposed in connection with the

certificate or card (other than a dormancy,

inactivity, or service fee, which are discussed

above) the following information must be pro-

vided on or with the certificate or card:

a. the type of fee;

b. the amount of the fee (or an explanation of

how the fee will be determined);

c. the conditions under which the fee may be

imposed; and

d. a toll free number, and if one is maintained,

a website that a consumer may use to

obtain information about the fees described

in paragraphs 12 CFR 1005.20(d)(2) and 12

CFR 1005.20(f)(1) (described immediately

above) of this section must be disclosed on

the certificate or card (12 CFR 1005.20(f)).

25. If an expiration date applies to a certificate or

card, determine that the following disclosures

are provided on the certificate or card, as

applicable:

a. the expiration date for the underlying funds

or, if the underlying funds do not expire, that

fact;

b. a toll-free telephone number and, if one is

maintained, a website that a consumer may

use to obtain a replacement certificate or

card after the certificate or card expires if

the underlying funds may be available; and

c. except where a non-reloadable certificate

or card bears an expiration date that is at

least seven years from the date of manufac-

ture, a statement, disclosed with equal

prominence and in close proximity to the

certificate or card expiration date, that:

i. the certificate or card expires, but the

underlying funds either do not expire or

expire later than the certificate or card,

and

ii. the consumer may contact the issuer

for a replacement card (12 CFR 1005.20

(e)(3)).

26. Determine that a loyalty, award, or promotional

gift card sold or issued by the examined

institution sets forth the following disclosures,

as applicable: (12 CFR 1005.20(a)(4)(iii))

a. a statement on the front of the card, code,

or other device, indicating that the card,

code, or other device is issued for loyalty,

award, or promotional purposes;

b. the expiration date for the underlying funds

on the front of the card, code, or other

device;

c. the amount of any fees that may be

imposed in connection with the card, code,

or other device, and the conditions under

which they may be imposed. This disclo-

sure must be provided on or with the card,

code, or other device; and

d. a toll-free telephone number and, if one is

maintained, a website that a consumer may

use to obtain fee information on the card,

code, or other device.

27. Determine that a person (examined institution)

that issues or sells a gift certificate, store gift

card, or general-use prepaid card discloses to

the consumer, prior to purchase, the informa-

tion required by 12 CFR 1005.20(d)(2) (dor-

mancy, inactivity, or service fees), 12 CFR

1005.20(e)(3) (expiration date or phone and

web regarding replacement), and 12 CFR

1005.20(f)(1) (other fees). (12 CFR 1005.20(c)

(3))

28. Determine that the fees, terms, and conditions

of expiration that are required to be disclosed

prior to purchase are not changed after

purchase. (12 CFR 1005.20(c)(3))

29. Determine that no person (examined institution)

imposes a dormancy, inactivity, or service fee

with respect to a gift certificate, store gift card,

or general-use prepaid card, unless (12 CFR

1005.20(d))

a. there has been no activity with respect to

the certificate or card, in the one year

period ending on the date on which the fee

is imposed;

b. required disclosures are provided; and

Electronic Fund Transfer Act: Examination Procedures

Consumer Compliance Handbook Reg. E • 45 (11/13)

c. not more than one dormancy, inactivity, or

service fee is imposed in any given calen-

dar month.

30. Determine that the person (examined institu-

tion) does not sell or issue a gift certificate,

store gift card, or general-use prepaid card

with an expiration date unless (12 CFR 1005.20

(e))

a. required expiration date disclosures are

provided on the certificate or card, as

applicable;

b. it has established policies and procedures

to provide consumers with a reasonable

opportunity to purchase a certificate or card

with at least five years remaining until the

certificate or card expiration date;

c. the expiration date for the underlying funds

is at least the later of

i. five years after the date the gift certifi-

cate was initially issued, or the date on

which funds were last loaded to a store

gift card or general-use prepaid card;

ii. the certificate or card expiration date, if

any; and

d. no fee or charge is imposed on the

cardholder for replacing the gift certificate,

store gift card, or general-use prepaid card

or for providing the certificate or card

holder with the remaining balance in some

other manner prior to the funds expiration

date, unless such certificate or card has

been lost or stolen.

Section III—Subpart B: Requirements

for remittance transfers

If an entity provides remittance transfers in its

‘‘normal course of business,’’ it is a remittance

transfer provider subject to the rule and should be

examined based on the following procedures.

Transaction-related examination

procedures

As applicable, conduct transaction testing using

the following examination procedures.

Obtain and review all available information as it

relates to the provider’s remittance program.

Examples of this include but are not limited to:

a. list of divisions or departments involved in

offering or providing remittance transfers (e.g.

retail, high net worth, prepaid cards, bill pay-

ment, online or mobile banking, foreign ex-

change and/or treasury departments);

b. remittance transfer products offered;

c. disclosure forms in all languages (as appli-

cable);

d. list of foreign countries to which the provider

sends remittance transfers;

e. list of all foreign currencies in which remittance

transfers sent by the provider may be received

where there are limitations on such currencies,

and identification of the currencies in which the

provider controls the exchange rate;

f. list of all third-party service providers or busi-

ness partners involved in remittance transfers,

including correspondent banks, payment net-

works, payment processors, software provid-

ers, foreign currency providers, agents in the

United States or abroad, or similar entities;

g. locations of U.S. and foreign agents;

h. applicable documentation related to remittance

transfer operations (e.g., transaction logs, agent/

correspondent agreements, advertising and

marketing material including any done in for-

eign languages, and documentation regarding

calculation or estimates of fees, taxes, ex-

change rates, and dates included on disclo-

sures);

i. procedural manuals and written policies;

j. error resolution files;

k. form letters used in case of errors or questions

concerning a remittance transfer (including any

provided in foreign languages);

l. any agreements with third parties allocating

compliance responsibilities; and

m. consumer complaint files.

General form of disclosures—12 CFR

1005.31

1. Obtain and review a sample of the provider’s

disclosure forms for the provider’s various

remittance transfer products. Include disclo-

sures as provided for various products and

through various channels (e.g., in-person,

through a website, by telephone, through a

mobile phone application, text message). From

your review, verify that:

a. disclosures are in the appropriate form and

20. Subpart B does provide for a 100-transfer ‘‘safe harbor.’’

For an entity to qualify for this ‘‘safe harbor,’’ it must have provided

100 or fewer remittance transfers in the current calendar year and

the previous calendar year. If an entity crosses the 100-transfer

threshold either in the previous calendar year or the current

calendar year, it is deemed to be providing remittance transfers in

its ‘‘normal course of business’’ and it must begin complying with

the rule within a reasonable period of time (not to exceed six

months) unless, under the facts and circumstances, it would not

be deemed a provider.

Electronic Fund Transfer Act: Examination Procedures

46 (11/13) • Reg. E Consumer Compliance Handbook

are clear and conspicuous;

b. written and electronic disclosures are in a

retainable form (except where expressly

permitted not to be retainable);

c. the provider’s policy for providing oral

disclosures is appropriate for the related

transactions;

d. copies of scripts used for oral disclosures

comply with the regulation;

e. disclosures comply with the format require-

ments regarding grouping of like items,

proximity, prominence and size, and segre-

gation from other information; and

f. disclosure of amounts required to be dis-

closed under 12 CFR 1005.31(b) (1), (2),

and (3), use the appropriate terms (e.g.,

transfer amount, transfer taxes, currency) or

substantially similar terms.

2. If applicable, determine whether the provider

complies with the foreign language disclosure

requirements as outlined under 12 CFR

1005.31(g).

Prepayment disclosures—12 CFR

1005.31(b)(1)

3. Based on a review of the provider’s policies

and if appropriate, sampled transactions, de-

termine that it appropriately categorizes third-

party fees as covered or non-covered.

4. Based on a review of the provider’s policies on

prepayment disclosures and if appropriate,

sampled prepayment disclosures and related

documentation, determine whether the pro-

vider appropriately calculates and discloses

a. in the currency in which the remittance

transfer is funded:

i. the amount that will be transferred to

the designated recipient, using the term

‘‘Transfer Amount’’ or a substantially

similar term;

ii. fees imposed and taxes collected on

the remittance transfer by the provider,

using the terms ‘‘Transfer Fees’’ and

‘‘Transfer Taxes’’ or substantially similar

terms; and

iii. the total amount of the transaction using

the term ‘‘Total’’ or a substantially

similar term;

b. the exchange rate used by the provider for

the remittance transfer using the term

‘‘Exchange Rate’’ or a substantially similar

term;

c. in the currency in which the funds will be

received by the designated recipient:

i. the transfer amount in the currency but

only if covered third-party fees are

imposed using the term ‘‘Transfer

Amount’’ or a substantially similar term;

ii. any covered third-party fees imposed

on the remittance transfer using the

term, ‘‘Other Fees’’ or a substantially

similar term;

iii. the amount that will be received by the

designated recipient (total amount of

the transaction minus covered third-

party fees) using the term ‘‘Total to

Recipient’’ or a substantially similar

term; and

iv. if applicable, a statement that non-

covered third-party fees or taxes col-

lected on the remittance transfer by a

third person may apply to the remit-

tance transfer and result in the desig-

nated recipient receiving less than the

amount disclosed.

d. If the provider includes in the statement

under (c)(iii) above, the optional estimated

disclosure of applicable non-covered third-

party fees or taxes, determine if the esti-

mates are based on reasonable sources.

NOTE: The exchange rate used to calculate the

amounts under (c) is prior to any rounding.

Receipt disclosures—12 CFR

1005.31(b)(2)

5. Review policies on receipt disclosures, sample

receipts, and related documentation to deter-

mine whether the provider appropriately calcu-

lates and discloses:

a. information disclosed in the prepayment

disclosure;

b. the date in the foreign country on which

funds will be available to the designated

recipient, using the term ‘‘Date Available’’ or

a substantially similar term;

c. the name and, if provided by the sender,

the telephone number and/or address of

the designated recipient, using the term

‘‘Recipient’’ or a substantially similar term;

d. a statement about the rights of the sender

regarding the resolution of errors and

cancellation;

e. the name, telephone number(s), and web-

site of the remittance transfer provider; and

f. a statement that the sender can contact the

Consumer Financial Protection Bureau

Electronic Fund Transfer Act: Examination Procedures

Consumer Compliance Handbook Reg. E • 47 (11/13)

(CFPB) and if applicable, the state agency

that licenses or charters the remittance

transfer provider with respect to the remit-

tance transfer and for questions or com-

plaints about the remittance transfer pro-

vider, as well as their telephone number(s)

and website addresses.

NOTE: For any remittance transfer scheduled by

the sender at least three business days before the

date of the transfer, the statement about the rights

of the sender regarding cancellation must state that

the sender must request the cancellation, at least

three business days before the next scheduled

transfer. The statement must also note that the

request must enable the provider to identify the

sender’s contact information and the particular

transfer to be cancelled.

Combined disclosures—12 CFR

1005.31(b)(3)

NOTE: Complete this section only if the provider

provides combined disclosures as an alternative to

the prepayment and receipt disclosures.

6. Review policies on combined disclosures,

sample disclosures and related documentation

a. determine that they contain all the informa-

tion required for the prepayment disclosure

and receipt disclosure as described above;

b. determine that the provider provides a

proof of payment after payment is made for

each transaction; and

c. determine that the proof of payment is clear

and conspicuous, provided in writing or

electronically, and provided in a retainable

form.

Accuracy and timing—12 CFR

1005.31(e) and (f)

7. Review, as appropriate, all available informa-

tion including transactions or investigation/

trace logs/records or similar documents to

verify (subject to the disclaimer statement with

respect to non-covered third-party fees and

third-party taxes) the accuracy of disclosures

provided to consumers.

a. In instances in which prepayment disclo-

sures and receipts are provided that do not

contain estimates, confirm with respect to

any transaction for which payment was

made, that the information on the most

recent prepayment disclosure for that trans-

action and the information on the receipt for

that transaction are the same.

b. For amounts that are not estimates, confirm

that the disclosed amounts were accurate

at the time that payment was made.

c. For amounts that are estimates, determine

whether the estimates were calculated

correctly, in accordance with the applicable

bases outlined in 12 CFR 1005.32.

d. In the case of estimates pursuant to 1005.32

(a), (b)(1), and (b)(2) that are based on an

approach that is not one of the listed bases

in 1005.32(c), determine that the recipient

received the same, or greater, amount of

funds than what was disclosed.

8. Review processes and procedures or records,

as appropriate, to determine whether the

required disclosures are provided in accor-

dance with the timing requirements in 12 CFR

1005.31(e).

a. Determine whether prepayment disclosures

are provided when the sender requests the

remittance transfer, but prior to payment.

b. Determine whether receipts are provided

when payment is made, or in accordance

with 1005.31(e)(2) for transactions con-

ducted by telephone.

Long-form error resolution and

cancellation notice—12 CFR

1005.31(b)(4)

9. Determine the provider’s policy for providing

long-form error resolution and cancellation

notices to senders upon request.

10. Review the provider’s records of senders’

requests and determine that a long-form error

resolution and cancellation notice is promptly

provided in response to each request.

11. Review sample notices to determine that they

use language set forth in Model Form A-36

(Model Form for Error Resolution and Cancel-

lation Disclosures (Long) of Appendix A to

subpart B) or substantially similar language.

Estimates—12 CFR 1005.32

Temporary exception for insured

institutions—12 CFR 1005.32(a)

12. Determine that the remittance transfer provider

is an insured institution within the definition of

the rule. If it is, review the appropriate informa-

tion including transaction log/records, etc., to

identify remittance transfer transactions that

were sent from the sender’s account with the

institution. From the list, identify transactions for

which estimates were used.

Electronic Fund Transfer Act: Examination Procedures

48 (11/13) • Reg. E Consumer Compliance Handbook

NOTE: An insured institution acting as an agent on

behalf of another in connection with a remittance

transfer is not a remittance transfer provider.

13. Review transactions for which estimates were

used, as well as related disclosures, and any

other relevant procedures, processes, and

documentation of information included in dis-

closures, as appropriate, to

a. assess the adequacy of the provider’s

policy and procedures for determining that

a provider could not determine exact

amounts for reasons beyond its control;

b. determine that estimates were used only in

cases when the provider could not deter-

mine the exact amounts for reasons beyond

its control;

c. determine the bases used for the estimates

under 12 CFR 1005.32(c) and consider

their appropriateness, and

i. if estimates were provided in accor-

dance with one of the bases listed in

Regulation E (12 CFR 1005.32(c)), re-

view documentation to confirm that

inputs to estimates are appropriate;

ii. if estimates are based on an approach

that is not one of the listed bases,

determine as appropriate, that the des-

ignated recipient received the same, or

greater, amount of funds than the

remittance transfer provider disclosed.

d. determine that the estimated amounts are

appropriately labeled with the term ‘‘Esti-

mated’’ or a substantially similar term,

placed in close proximity to the term

described; and

e. determine that related calculations were

performed appropriately.

NOTE: Unless extended by the CFPB, this excep-

tion will not apply after July 21, 2015.

Permanent exception for transfers to certain

countries—12 CFR 1005.32(b)(1)

14. Review and assess the adequacy of the

provider’s policy for determining that

a. the laws of the recipient country do not

permit a determination of the exact amount;

b. the methods by which transactions are

made in the recipient country do not permit

such determination.

15. Review the provider’s transaction log/records

to identify remittance transactions that were

sent to countries on the list provided by the

CFPB for which estimates may be provided on

remittance transfer-related disclosures to de-

termine if the provider relied on the list in

making estimates.

16. Determine whether the provider gave estimates

for transactions to a country that is not on the

list provided by the CFPB. Review related

documentation to confirm that the recipient

country does not legally permit, or the method

by which transactions are conducted in that

country does not permit determination of exact

amounts.

17. Review records to determine

a. the bases used for the estimates under 12

CFR 1005.32 (c) and their appropriateness:

i. If estimates were provided in accor-

dance with one of the bases listed in 12

CFR 1005.32(c), review documentation

to confirm that inputs to estimates are

appropriate; or

ii. If estimates are based on an approach

that is not one of the listed bases,

determine as appropriate, that the des-

ignated recipient received the same, or

greater, amount of funds than the

remittance transfer provider disclosed.

b. that the estimated amounts are appropri-

ately labeled with the term ‘‘Estimated’’ or a

substantially similar term, placed in close

proximity to the term described.

Permanent exception for transfers scheduled

before the date of transfer—12 CFR

1005.32(b)(2)

18. Review and assess the adequacy of the

provider’s policy and procedures for using

estimates in the case of transfers scheduled

five or more business days before the date of

transfer.

19. Review and assess transactions for which

estimates were used as well as related disclo-

sures (required by 12 CFR 1005.36(a)) and any

other relevant documentation, as appropriate,

to determine compliance with 12 CFR 1005.32

(b)(2).

Procedures for resolving errors—12 CFR

1005.33

20. Review the provider’s policies and procedures

on error resolution.

21. Review relevant error resolution statements/

files, consumer complaints, form letters, etc.,

used in addressing errors or questions con-

cerning remittance transfer transactions.

22. Assess the provider’s compliance program to

Electronic Fund Transfer Act: Examination Procedures

Consumer Compliance Handbook Reg. E • 49 (11/13)

determine whether it has developed and main-

tains adequate written policies and procedures

designed to ensure compliance with the error

resolution requirements applicable to remit-

tance transfers.

Consider:

a. the procedures for receiving complaints of

error from branches, agents, or other loca-

tions where a consumer may lodge a

complaint;

b. the procedures for identifying complaints

alleging ‘‘errors’’ as identified in 12 CFR

1005.33(a); and

c. the procedures for investigating, respond-

ing to, and resolving complaints.

23. Determine the extent of the provider’s compli-

ance with its policies and procedures on error

resolution.

24. Determine the provider’s compliance with the

regulatory requirements regarding investiga-

tion of alleged errors and notification of con-

sumers within the allotted time frames.

25. Determine the timeliness and adequacy of

remedies the provider provides to address

identified errors.

a. For errors other than those that occurred

because the sender provided incorrect or

insufficient information, consider

i. if the provider provided the sender

notice regarding the error investigation;

ii. if the sender requested a remedy,

determine whether the provider pro-

vides the remedy selected by the

sender. If a default remedy is provided,

determine whether the sender had a

reasonable time to designate a remedy

after receiving a report of the error.

iii. if the remedy is delivery of the amount

appropriate to correct the error, deter-

mine whether the provider corrects the

error within one business day, or as

soon as reasonably practicable, apply-

ing the same exchange rate, fees, and

taxes stated in the disclosure provided

in connection with the remittance trans-

fer with respect to which the error was

made;

iv. if the remedy is a refund, determine

whether the provider refunds the appro-

priate amount within one business day

or as soon as reasonably practicable

thereafter.

b. If the provider determines that an error

occurred that relates to

i. an incorrect amount paid by the sender;

ii. a computational or bookkeeping error

made by the remittance transfer pro-

vider; or

iii. failure to make the amount of currency

stated in the disclosures available to

the designated recipient.

26. Determine whether the provider either

a. refunds the amount of funds provided by

the sender (in case of a transaction that was

not properly transmitted) or the amount

appropriate to resolve the error; or

b. makes available to the designated recipient

the amount appropriate to resolve the error

without additional cost to the sender or the

designated recipient.

c. If the error relates to the failure to make

funds available to the designated recipient

by the disclosed date of availability (other

than an error resulting from incorrect or

insufficient information provided by the

sender), determine whether the provider

i. either:

1. refunds the amount of funds that was

not properly transmitted or the

amount appropriate to resolve the

error to the sender; or

2. makes available to the designated

recipient the amount appropriate to

resolve the error; and

ii. refunds to the sender any fees and, to

the extent not prohibited by law, taxes

collected on the remittance transfer.

d. In the case of errors involving incorrect or

insufficient information provided by the

sender for the transfer

i. determine whether the provider refunds

to the sender the amount of funds that

was not properly transmitted, or the

amount appropriate to resolve the error,

within three business days of providing

the written explanation of findings;

ii. alternatively, if the provider has not yet

processed a refund and agrees to the

sender’s request to apply the funds

toward a new remittance transfer, in-

stead of a refund, determine whether

the provider treats the request as a new

remittance transfer, provides the appro-

priate disclosures, and appropriately

deducts those fees and taxes actually

collected for the original unsuccessful

transaction.

27. Determine that the provider is maintaining

Electronic Fund Transfer Act: Examination Procedures

50 (11/13) • Reg. E Consumer Compliance Handbook

records of compliance for a period of not less

than two years from the date a notice of error

was submitted to the provider or action was

required to be taken by the provider.

Procedures for cancellation and refund

of remittance transfers—12 CFR 1005.34

and 12 CFR 1005.36(c)

28. Review and assess the provider’s policies and

procedures regarding cancellation and refund

of remittance transfer transactions, including:

a. the procedures for receiving requests of

cancellation from branches, agents, or

other locations where a consumer may

request cancellation

b. the procedures for identifying which trans-

actions are eligible for cancellation

c. the procedures for issuing refunds

29. Determine the extent of the provider’s compli-

ance with its own policies and procedures on

cancellation and refund.

30. Determine the provider’s compliance with the

regulatory requirements regarding senders’

request for cancellation and refund.

31. Determine whether the provider complies with

any oral or written request to cancel any

remittance transfer scheduled by the sender at

least three business days before the date of the

remittance transfer.

Acts of agents—12 CFR 1005.35

NOTE: Complete this section if the provider uses

agent(s) to conduct any element of remittance

transfer transactions.

32. Review the provider’s agreements with agents

used for remittance transfers to determine

whether they are appropriate for the activities

delegated.

33. Determine whether the provider has estab-

lished appropriate internal controls and review

procedures in relation to the work done by

agents on its behalf to ensure compliance with

the regulatory requirements. Consider

a. the extent to which the provider has estab-

lished and maintained policies or proce-

dures for compliance, including policies,

procedures, or other appropriate oversight

measures designed to assure compliance

by an agent or authorized delegate acting

for such provider including:

i. the degree of control the agent exer-

cises over the remittance transfer activi-

ties performed on the provider’s behalf;

ii. the quality and frequency of training

provided to ensure that agents are

aware of the regulatory requirements

and the provider’s internal policy guide-

lines; and

iii. the adequacy of the provider’s over-

sight of agents’ activities.

34. Select a sample of agents used by the provider

and review their records in addition to relevant

records held by the provider directly to deter-

mine that the activities performed by the agent

on the provider’s behalf are in compliance with

the regulatory requirements.

Transfers scheduled before the date of

transfer—12 CFR 1005.36

35. Review and assess the adequacy of the

provider’s policies and procedures regarding

transfers scheduled before the date of transfer.

36. As appropriate, select a sample of records of

transfers scheduled in advance to determine

whether the provider complies with the timing

of disclosures, accuracy of disclosures (and

estimates pursuant to 1005.32(b)(2)), and the

sender’s request for cancellation. Use the

same methods identified in the sections above,

regarding other disclosures. Consider the fol-

lowing:

a. For one-time transfers scheduled five or

more business days in advance or for the

first in a series of preauthorized remittance

transfers, determine whether the provider

provides either a prepayment disclosure

and a receipt or a combined disclosure at

the time the sender requests the transfer

but prior to payment.

(NOTE: If any of the disclosures provided contain

estimates as permitted by 12 CFR. 1005.32(b)(2),

the provider must mail or deliver an additional

receipt no later than one business day after the

date of the transfer. If the transfer involves the

transfer of funds from the sender’s account held by

the provider, this additional receipt may be pro-

vided on or with the next periodic statement for that

account or within 30 days after the date of the

transfer if a periodic statement is not provided).

b. For each subsequent preauthorized remit-

tance transfer, determine whether the pro-

vider provides an updated receipt if any of

the information (other than temporal disclo-

sures or disclosures that are permitted to

be estimated) on the most recent receipt is

no longer accurate.

(NOTE: The receipt must clearly and conspicuously

indicate that it contains updated disclosures and

Electronic Fund Transfer Act: Examination Procedures

Consumer Compliance Handbook Reg. E • 51 (11/13)

must be mailed or delivered to the sender within a

reasonable time prior to the scheduled date of the

next subsequent preauthorized remittance transfer.

A disclosure that is mailed no later than 10

business days or hand or electronically delivered

no later than 5 business days is deemed to have

been provided within a reasonable time).

c. If there is no updated information and the

remittance transfer does not involve the

transfer of funds from the sender’s account

held by the provider, determine whether the

provider mails or delivers a receipt to the

sender no later than one business day after

the date of the transfer for each subsequent

preauthorized transfer.

d. If there is no updated information and the

remittance transfer involves the transfer of

funds from the sender’s account held by the

provider, determine whether the receipt is

provided on or with the next periodic

statement for that account, or within 30

days after the date of the transfer if a

periodic statement is not provided.

e. For any subsequent transfer in a series of

preauthorized remittance transfers, deter-

mine whether the provider discloses the

information required by 12 CFR 1005.36

(d)(1) no more than 12 months, and no less

than 5 business days, prior to the date of

the subsequent preauthorized remittance

transfer.

(NOTE: While the rule generally provides flexibility

as to when and where future transfer dates may be

disclosed, for any subsequent preauthorized remit-

tance transfer for which the date of transfer is four

or fewer business days after the date payment is

made, the disclosure must generally be provided

on or with the receipt for the initial transfer in that

series).

Examiner’s Summary,

Recommendations, and Comments

Electronic Fund Transfer Act: Examination Procedures

52 (11/13) • Reg. E Consumer Compliance Handbook

Electronic Fund Transfer Act (Regulation E)

Examination Checklist

This questionnaire can be used to review audit workpapers, to evaluate financial institution policies, to

perform transaction testing, and to train as appropriate. Complete only those aspects of the checklist that

specifically relate to the issue being reviewed, evaluated, or tested, and retain those completed sections in

the workpapers.

When reviewing audits, evaluating financial institution policies, or performing transaction testing, a ‘‘No’’

answer indicates a possible exception/deficiency, and you should explain it in the workpapers. If a line item

is not applicable within the area you are reviewing, indicate by using ‘‘NA.’’

Subpart A

Issuance of Access Devices—12 CFR 1005.5

1. Do the financial institution’s policies, practices, and procedures allow that

validated access devices are issued only:

• In response to oral or written requests (12 CFR 1005.5(a)(1)) Yes No NA

• As a renewal or substitution for an accepted access device? (12 CFR

1005.5(a)(2)) Yes No NA

2. Do the financial institution’s policies, practices, and procedures allow that

unsolicited access devices are issued only when the devices are:

• Not validated? (12 CFR 1005.5(b)(1)) Yes No NA

• Accompanied by a clear explanation that they are not validated and how

they may be disposed of if validation is not desired? (12 CFR 1005.5(b)(2)) Yes No NA

• Accompanied by the initial disclosures required by 12 CFR 1005.7? (12

CFR 1005.5(b)(3)) Yes No NA

• Validated only in response to a consumer’s request and after the financial

institution has verified the consumer’s identity by reasonable means (e.g.,

photograph, fingerprint, personal visit, and signature)? (12 CFR 1005.5

(b)(4) and Staff Commentary) Yes No NA

Consumer Liability for Unauthorized Electronic Fund Transfers (EFTs)—12 CFR 1005.6

3. Does the financial institution impose liability on the consumer for unauthor-

ized transfers only if: (12 CFR 1005.6(a))

• Any access device that was used was an accepted access device? Yes No NA

• The institution has provided a means to identify the consumer to whom it

was issued? Yes No NA

• The institution has provided the disclosures required by 12 CFR

1005.7(b)(l), (2), and (3)? Yes No NA

4. Does the financial institution not rely on consumer negligence or the deposit

agreement to impose greater consumer liability for unauthorized EFTs than is

permitted under Regulation E? (12 CFR Part 1005, Supp. 1, Comments

1005.6(b)-1 and -2) Yes No NA

5. If a consumer notifies the financial institution within two business days after

learning of the loss or theft of an access device, does the financial institution

limit the consumer’s liability for unauthorized EFTs to the lesser of $50 or

actual loss? (12 CFR 1005.6(b)(1)) Yes No NA

Consumer Compliance Handbook Reg. E • 53 (11/13)

6. If a consumer does not notify the financial institution within two business days

after learning of the loss or theft of an access device, does the institution limit

the consumer’s liability for unauthorized EFTs to the lesser of $500 or the sum

of (12 CFR 1005.6(b)(2)):

• $50 or the amount of unauthorized EFTs that occurred within the two

business days, whichever is less; Yes No NA

Plus

• The amount of unauthorized EFTs that occurred after the close of two

business days and before notice to the financial institution (provided the

financial institution establishes that these transfers would not have

occurred had the consumer notified the financial institution within that

two-day period)? Yes No NA

7. If a consumer notifies the financial institution of an unauthorized EFT within 60

calendar days of transmittal of the periodic statement upon which the

unauthorized EFT appears, does the financial institution not hold the

consumer liable for the unauthorized transfers that occur after the 60-day

period? (12 CFR 1005.6(b)(3)) Yes No NA

8. If a consumer does not notify the financial institution of an unauthorized EFT

within 60 calendar days of transmittal of the periodic statement upon which

the unauthorized EFT appears, does the financial institution ensure that the

consumer’s liability does not exceed the amount of the unauthorized transfers

that occur after the close of the 60 days and before notice to the financial

institution, if the financial institution establishes that the transfers would not

have occurred had timely notice been given? (12 CFR 1005.6(b)(3)) Yes No NA

9. If a consumer notifies the financial institution of an unauthorized EFT within

the time frames discussed in questions 7 or 8 and the consumer’s access

device is involved in the unauthorized transfer, does the financial institution

hold the consumer liable for amounts as set forth in 12 CFR 1005.6(b)(1) or

(2) (discussed in questions 5 and 6)? (12 CFR 1005.6(b)(3)) Yes No NA

NOTE: The first two tiers of liability (as set forth in 12 CFR 1005.6(b)(1) and (2)

and discussed in questions 5 and 6) do not apply to unauthorized transfers

from a consumer’s account made without an access device. (Comment

1005.6(b)(3)-2)

10. Does the financial institution extend the 60-day time period by a reasonable

amount if the consumer’s delay in notification was due to an extenuating

circumstance? (12 CFR 1005.6(b)(4)) Yes No NA

11. Does the financial institution consider notice to be made when the consumer

takes steps reasonably necessary to provide the institution with pertinent

information, whether or not a particular employee or agent of the institution

actually received the information? (12 CFR 1005.6(b)(5)(i)) Yes No NA

12. Does the financial institution allow the consumer to provide notice in person,

by telephone, or in writing? (12 CFR 1005.6(b)(5)(ii)) Yes No NA

13. Does the financial institution consider written notice to be given at the time the

consumer mails or delivers the notice for transmission to the institution by any

other usual means? (12 CFR 1005.6(b)(5)(iii)) Yes No NA

14. Does the financial institution consider notice given when it 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? (12 CFR

1005.6(b)(5)(iii)) Yes No NA

15. Does the financial institution limit the consumer’s liability to a lesser amount

than provided by 12 CFR 1005.6, when state law or an agreement between

the consumer and the financial institution provide for such an amount? (12

CFR 1005.6(b)(6)) Yes No NA

Electronic Fund Transfer Act: Examination Checklist

54 (11/13) • Reg. E Consumer Compliance Handbook

Initial Disclosures—12 CFR 1005.7

16. Does the financial institution provide the initial disclosures at the time a

consumer contracts for an EFT service or before the first EFT is made

involving the consumer’s account? (12 CFR 1005.7(a)) Yes No NA

17. Do the financial institution’s initial disclosures provide the following

information, as applicable:

• A summary of the consumer’s liability for unauthorized transfers under 12

CFR 1005.6 or under state or other applicable law or agreement? (12 CFR

1005.7(b)(1)) Yes No NA

• The telephone number and address of the person or office to be notified

when the consumer believes that an unauthorized EFT has been or may be

made? (12 CFR 1005.7(b)(2)) Yes No NA

• The financial institution’s business days? (12 CFR 1005.7(b)(3)) Yes No NA

• The type of EFTs the consumer may make and any limits on the frequency

and dollar amount of transfers? (If details on the limits on frequency and

dollar amount are essential to maintain the security of the system, they

need not be disclosed.) (12 CFR 1005.7(b)(4)) Yes No NA

• Any fees imposed by the financial institution for EFTs or for the right to make

transfers? (12 CFR 1005.7(b)(5)) Yes No NA

• A summary of the consumer’s right to receive receipts and periodic

statements, as provided in 12 CFR 1005.9, and notices regarding

preauthorized transfers as provided in 12 CFR 1005.10(a) and 1005.10(d)?

(12 CFR 1005.7(b)(6)) Yes No NA

• A summary of the consumer’s right to stop payment of a preauthorized EFT

and the procedure for placing a stop payment order, as provided in 12 CFR

1005.10(c)? (12 CFR 1005.7(b)(7)) Yes No NA

• A summary of the financial institution’s liability to the consumer for its failure

to make or to stop certain transfers under the Electronic Fund Transfer Act?

(12 CFR 1005.7(b)(8)) Yes No NA

• The circumstances under which the financial institution, in the ordinary

course of business, may disclose information to third parties concerning

the consumer’s account? (12 CFR 1005.7(b)(9)) Yes No NA

• An error resolution notice that is substantially similar to Model Form A-3 in

Appendix A? (12 CFR 1005.7(b)(10)) Yes No NA

• A notice that a fee may be imposed by an ATM operator (as defined in 12

CFR 1005.16(a)) when the consumer initiates an EFT or makes a balance

inquiry and by any network used to complete the transaction? (12 CFR

1005.7(b)(11)) Yes No NA

18. Does the financial institution provide disclosures at the time a new EFT

service is added, if the terms and conditions of the service are different than

those initially disclosed? (12 CFR 1005.7(c)) Yes No NA

Change-in-Terms Notice; Error Resolution Notice—12 CFR 1005.8

19. If the financial institution made any changes in terms or conditions required

to be disclosed under 12 CFR 1005.7(b) that would result in increased fees,

increased liability, fewer types of available EFTs, or stricter limits on the

frequency or dollar amount of transfers, did the financial institution provide a

written notice to consumers at least 21 days prior to the effective date of such

change? (12 CFR 1005.8(a)) Yes No NA

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Consumer Compliance Handbook Reg. E • 55 (11/13)

20. Does the financial institution provide either the long-form error resolution

notice at least once every calendar year or the short-form error resolution

notice on each periodic statement? (12 CFR 1005.8(b)) Yes No NA

Receipts at Electronic Terminals; Periodic Statements—12 CFR 1005.9

21. Does the financial institution make receipts available to the consumer at the

time the consumer initiates an EFT at an electronic terminal? The financial

institution is exempt from this requirement for EFTs of $15 or less. (12 CFR

1005.9(a) and (e)) Yes No NA

22. Do the receipts contain the following information, as applicable:

• The amount of the transfer? (12 CFR 1005.9(a)(1)) Yes No NA

• The date the transfer was initiated? (12 CFR 1005.9(a)(2)) Yes No NA

• The type of transfer and the type of account to or from which funds were

transferred? (12 CFR 1005.9(a)(3)) Yes No NA

• A number or code that identifies the consumer’s account or the access

device used to initiate the transfer? (12 CFR 1005.9(a)(4)) Yes No NA

• The terminal location where the transfer is initiated? (12 CFR 1005.9(a)(5)) Yes No NA

• The name or other identifying information of any third party to or from whom

funds are transferred? (12 CFR 1005.9(a)(6)) Yes No NA

23. Does the financial institution send a periodic statement for each monthly

cycle in which an EFT has occurred? If no EFT occurred, does the financial

institution send a periodic statement at least quarterly? (12 CFR 1005.9(b)) Yes No NA

24. Does the periodic statement contain the following information, as applicable:

• Transaction information for each EFT occurring during the cycle, including

the amount of transfer, date of transfer, type of transfer, terminal location,

and name of any third-party transferor or transferee? (12 CFR 1005.9(b)(1)) Yes No NA

• Account number? (12 CFR 1005.9(b)(2)) Yes No NA

• Fees? (12 CFR 1005.9(b)(3)) Yes No NA

• Account balances? (12 CFR 1005.9(b)(4)) Yes No NA

• Address and telephone number for inquiries? (12 CFR 1005.9(b)(5)) Yes No NA

• Telephone number to ascertain preauthorized transfers, if the financial

institution provides telephone notice under 12 CFR 1005.10(a)(1)(iii)? (12

CFR 1005.9(b)(6)) Yes No NA

Preauthorized Transfers—12 CFR 1005.10

25. If a consumer’s account is to be credited by a preauthorized EFT from the

same payor at least once every 60 days (and the payor does not already

provide notice to the consumer that the transfer has been initiated) (12 CFR

1005.10(a)(2)), does the financial institution do one of the following:

• Provide oral or written notice, within two business days, after the transfer

occurs? (12 CFR 1005.10(a)(1)(i)) Yes No NA

• Provide oral or written notice, within two business days after the transfer

was scheduled to occur, that the transfer did or did not occur? (12 CFR

1005.10(a)(1)(ii)) Yes No NA

• Provide a readily available telephone line that the consumer can call to

determine if the transfer occurred and that telephone number is disclosed

on the initial disclosure of account terms and on each periodic statement?

(12 CFR 1005.10(a)(1)(iii)) Yes No NA

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56 (11/13) • Reg. E Consumer Compliance Handbook

26. Does the financial institution credit the amount of a preauthorized transfer as

of the date the funds for the transfer are received? (12 CFR 1005.10(a)(3)) Yes No NA

27. Does the financial institution ensure that an authorization is obtained for

preauthorized transfers from a consumer’s account by a written, signed or

similarly authenticated authorization, and is a copy of the authorization

provided to the consumer? (12 CFR 1005.10(b)) Yes No NA

28. Does the financial institution allow the consumer to stop payment on a

preauthorized EFT by oral or written notice at least three business days

before the scheduled date of the transfer? (12 CFR 1005.10(c)(1)) Yes No NA

29. If the financial institution requires that the consumer give written confirmation

of an oral stop-payment order within 14 days, does the financial institution

inform the consumer, at the time they give oral notification, of the requirement

and provide the address where they must send the written confirmation? Yes No NA

NOTE: An oral stop-payment order ceases to be binding after 14 days if the

consumer fails to provide the required written confirmation. (12 CFR

1005.10(c)(2))

30. Does the financial institution inform, or ensure that third-party payees inform,

the consumer of the right to receive notice of all varying transfers? Yes No NA

Does the financial institution give the consumer the option of receiving notice

only when a transfer falls outside a specified range of amounts or differs from

the most recent transfer by an agreed-upon amount? (12 CFR 1005.10(d)(2)) Yes No NA

31. If the financial institution or third-party payee is obligated to send the

consumer written notice of the EFT of a varying amount, does the financial

institution ensure that:

• The notice contains the amount and date of transfer? Yes No NA

• The notice is sent at least 10 days before the scheduled date of transfer?

(12 CFR 1005.10(d)(1)) Yes No NA

32. Does the financial institution not condition an extension of credit to a

consumer on the repayment of loans by preauthorized EFT, except for credit

extended under an overdraft credit plan or extended to maintain a specified

minimum balance in the consumer’s account? (12 CFR 1005.10(e)(1)) Yes No NA

33. Does the financial institution not require a consumer to establish an account

for EFTs with a particular institution as a condition of employment or receipt

of government benefits? (12 CFR 1005.10(e)(2)) Yes No NA

Procedures for Resolving Errors—12 CFR 1005.11

34. Does the financial institution have procedures to investigate and resolve all

oral or written notices of error received no later than 60 days after the

institution sends the periodic statement or provides passbook documenta-

tion? (12 CFR 1005.11(b)(2)) Yes No NA

35. If the financial institution requires written confirmation of an error within 10

business days of an oral notice, does the financial institution inform the

consumer of this requirement and provide the address where the written

confirmation must be sent? (12 CFR 1005.11(b)(2)) Yes No NA

36. Does the financial institution have procedures to investigate and resolve

alleged errors within 10 business days, except as otherwise provided in 12

CFR 1005.11(c)? (12 CFR 1005.11(c)(1)) Yes No NA

NOTE: The time period is extended in certain circumstances. (12 CFR

1005.11(c)(3))

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Consumer Compliance Handbook Reg. E • 57 (11/13)

37. Does the financial institution report investigation results to the consumer

within three business days after completing its investigation and correct any

error within one business day after determining that an error occurred? (12

CFR 1005.11(c)(1)) Yes No NA

38. If the financial institution is unable to complete its investigation within 10

business days, does the financial institution have procedures to investigate

and resolve alleged errors within 45 calendar days of receipt of a notice of

error; and:

• Does the financial institution provisionally credit the consumer’s account in

the amount of the alleged error (including interest, if applicable) within 10

business days of receiving the error notice (however, if the financial

institution requires, but does not receive, written confirmation within 10

business days, the financial institution is not required to provisionally credit

the consumer’s account)? Yes No NA

• Within two business days after granting any provisional credit, does the

financial institution inform the consumer of the amount and date of the

provisional credit and gives the consumer full use of the funds during the

investigation? Yes No NA

• Within one business day after determining that an error occurred, does the

financial institution correct the error? Yes No NA

• Does the financial institution report the results to the consumer within three

business days after completing its investigation including, if applicable,

notice that provisional credit has been made final? (12 CFR 1005.11(c)) Yes No NA

NOTE: The time period is extended in certain circumstances. (12 CFR

1005.11(c)(3))

39. If a billing error occurred, does the financial institution not impose a charge

related to any aspect of the error-resolution process? (Comment 1005.11

(c)-3) Yes No NA

40. If the financial institution determines that no error occurred (or that an error

occurred in a manner or amount different from that described by the

consumer), does the financial institution send a written explanation of its

findings to the consumer and note the consumer’s right to request the

documents the financial institution used in making its determination? (12 CFR

1005.11(d)(1)) Yes No NA

41. When the financial institution determines that no error (or a different error)

occurred, does the financial institution notify the consumer of the date and

amount of the debiting of the provisionally credited amount and the fact that

the financial institution will continue to honor checks and drafts to third parties

and preauthorized transfers for five business days (to the extent that they

would have been paid if the provisionally credited funds had not been

debited)? (12 CFR 1005.11(d)(2)) Yes No NA

Record Retention—12 CFR 1005.13

42. Does the financial institution maintain evidence of compliance with the

requirements of the Electronic Fund Transfer Act and Regulation E for a

period of two years? (12 CFR 1005.13(b)) Yes No NA

Disclosures at Automated Teller Machines (ATM)—12 CFR 1005.16

43. If the financial institution operates an ATM and imposes a fee on a consumer

for initiating an EFT or balance inquiry, does the financial institution provide

notice that a fee will be imposed and disclose the amount of the fee? (12 CFR

1005.16(b)) Yes No NA

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58 (11/13) • Reg. E Consumer Compliance Handbook

44. Does the financial institution provide the notice required by 12 CFR

1005.16(b) either by showing it on the ATM screen or by providing it on paper

before the consumer is committed to paying a fee? (12 CFR 1005.16(c)) Yes No NA

Requirements for Overdraft Services—12 CFR 1005.17

45. Does the financial institution’s Overdraft Protection Program incorporate any

guidance issued by its federal regulator, as applicable? Yes No NA

46. Does the financial institution’s Overdraft Protection Program provide

‘‘overdraft services,’’ i.e., charge fees for paying ATM and one-time debit

overdrafts? (12 CFR 1005.17(a)) If no, do not complete this section. Yes No NA

47. If the financial institution assesses a fee or charge (NOTE: fees or charges

may generally be assessed only on transactions paid after the confirmation

has been mailed or delivered) on the consumer’s account for paying an ATM

or one-time debit card transaction pursuant to the financial institutions

overdraft service, does the financial institution first (12 CFR 1005.17(b)(1)):

• Provide the consumer with a notice in writing, or if the consumer agrees,

electronically, that is segregated from all other information and describes

the institution’s overdraft service (12 CFR 1005.17(b)(1)(i)); Yes No NA

• Provide a reasonable opportunity for the consumer to affirmatively consent,

or opt-in, to the institution’s payment of ATM and one-time debit card

transactions (12 CFR 1005.17(b)(1)(ii)); Yes No NA

• Obtain the consumer’s affirmative consent, or opt-in, to the institution’s

payment of ATM or one-time debit card transactions (12 CFR 1005.17(b)

(1)(iii)); and Yes No NA

• Provide the consumer with confirmation of the consumer’s consent in

writing, or if the consumer agrees, electronically, which includes a

statement informing the consumer of the right to revoke such consent? (12

CFR 1005.17(b)(1)(iv)) Yes No NA

48. Does the financial institution ensure that it does not condition the payment of

any overdrafts for checks, ACH transactions, and other types of transactions

on the consumer affirmatively consenting to the institution’s payment of ATM

and one-time debit card transactions pursuant to the institution’s ‘‘overdraft

services’’? (12 CFR 1005.17(b)(2)(i)) Yes No NA

49. Does the financial institution pay checks, ACH transactions, and other types

of transactions that overdraw the consumer’s account regardless of whether

the consumer has affirmatively consented to the institution’s overdraft

protection service for ATM and one-time debit card transactions? (12 CFR

1005.17(b)(2)(ii)) Yes No NA

50. For consumers who have not opted in, and if an overdraft fee or charge is

based on the amount of the outstanding negative balance, does the

institution only assess fees where the negative balance is attributable in

whole or in part to a check, ACH, or other type of transaction not subject to

the prohibition on assessment of overdraft fees? Yes No NA

For consumers who have not opted in, does the financial institution only

assess daily or sustained overdraft, negative balance, or similar fees or

charges where the negative balance is attributable in whole or in part to a

check, ACH, or other type of transaction not subject to the prohibition on

assessment of overdraft fees? Yes No NA

Does the institution base the date on which such a daily or sustained

overdraft, negative balance, or similar fee or charge is assessed on the date

on which the check, ACH, or other type of transaction was paid into overdraft?

(Comment 1005.17(b)-9) Yes No NA

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Consumer Compliance Handbook Reg. E • 59 (11/13)

51. Does the financial institution provide consumers who do not affirmatively

consent to the institution’s overdraft service for ATM and one-time debit card

transactions the same account terms, conditions, and features that it

provides to consumers who affirmatively consent, except for the overdraft

service for ATM and one-time debit card transactions? (12 CFR 1005.17(b)

(3)) Yes No NA

52. Is the notice required by (12 CFR 1005.17(b)(1)(i)) substantially similar to

Model Form A-9 set forth in Appendix A of (12 CFR 1005.17), including

applicable items from the list below, and does it not contain any additional

information? (12 CFR 1005.17(d)) Yes No NA

• Overdraft service—Does the notice provide a brief description of the

overdraft service and the types of transactions for which a fee or charge for

paying an overdraft may be imposed, including ATM and one-time debit

card transactions? (12 CFR 1005.17(d)(1)) Yes No NA

• Fees imposed—Does the notice contain the dollar amount of any fees or

charges assessed by the financial institution for paying an ATM or one-time

debit card transaction pursuant to the financial institution’s overdraft

service, including any daily or other overdraft fees? Yes No NA

NOTE: If the amount of the fee is determined on the basis of the number of

times the consumer has overdrawn the account, the amount of the

overdraft, or other factors, the institution must disclose the maximum fee

that may be imposed. (12 CFR 1005.17(d)(2))

• Limits on fees charged—Does the notice disclose the maximum number of

overdraft fees or charges that may be assessed per day or, if applicable,

that there is no limit? (12 CFR 1005.17(d)(3)) Yes No NA

• Disclosure of opt-in right—Does the notice explain the consumer’s right to

affirmatively consent to the financial institution’s payment of overdrafts for

ATM and one-time debit card transactions pursuant to the institution’s

overdraft service, including the methods by which the consumer may

consent to the service? (12 CFR 1005.17(d)(4)) Yes No NA

• Alternative plans for covering overdrafts—As applicable, does the

institution’s opt-in notice appropriately address the alternative methods for

covering overdrafts? Yes No NA

• If the institution offers both a line of credit subject to Regulation Z (12 CFR

Part 1026) and a service that transfers funds from another account of the

consumer held at the institution to cover overdrafts, does the notice state

that both alternative plans are offered? Yes No NA

• If the institution offers one alternative plan, but not the other, does the notice

state which alternative plan it offers? If the institution does not offer either a

line of credit subject to Regulation Z (12 CFR Part 1026) or a service that

transfers funds from another account of the consumer held at the institution

to cover overdrafts plan, does the notice exclude information regarding

either of these plans? Yes No NA

• If the financial institution offers additional alternatives for paying overdrafts,

at its option the institution may (but is not required to) disclose those

alternatives. Does its notice describe those alternatives? Yes No NA

• Permitted modifications and additional content—If the institution modifies

the notice, are the modifications permitted: to indicate that the consumer

has the right to opt into, or out of, the payment of overdrafts under the

institution’s overdraft service for other types of transactions, such as

checks, ACH transactions, or automatic bill payments; to provide a means

for the consumer to exercise this choice; and to disclose the associated

returned item fee and that additional merchant fees may apply? Yes No NA

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60 (11/13) • Reg. E Consumer Compliance Handbook

NOTE: The institution may also disclose the consumer’s right to revoke

consent. The response portion of Model Form A-9 may be tailored to the

methods offered for opting in and may include reasonable methods to identify

the account, such as a bar code. (12 CFR 1005.17(d)(6) and Comments

1005.17(d)-1 through -5))

53. Joint accounts—When two or more consumers jointly hold an account, does

the financial institution treat the affirmative consent of any of the joint

consumers as affirmative consent for that account, and treat the revocation of

affirmative consent by any of the joint consumers as revocation of consent for

that account? (12 CFR 1005.17(e)) Yes No NA

54. Continuing right to opt-in or to revoke opt-in—Does the financial institution

allow the consumer to affirmatively consent to the financial institution’s

overdraft service at any time in the manner described in the notice required

under (12 CFR 1005.17(b)(1)(i)) and allow a consumer to revoke consent at

any time in the manner made available to the consumer for providing

consent? (12 CFR 1005.17(f)) Yes No NA

55. Does the financial institution implement a consumer’s revocation of consent

as soon as reasonably practicable? (12 CFR 1005.17(f)) Yes No NA

56. Is the consumer’s affirmative consent to the overdraft service effective until

revoked by the consumer, or unless the financial institution terminates the

service? (12 CFR 1005.17(g)) Yes No NA

Payroll Card Accounts—12 CFR 1005.18

57. If the financial institution offers payroll card accounts, does the financial

institution either provide periodic statements as required by 12 CFR

1005.9(b) or make available to the consumer:

• The account balance, through a readily available telephone line, and Yes No NA

• An electronic history of the consumer’s account transactions, such as

through an Internet website, that covers at least 60 days preceding the

date the consumer electronically accesses the account, and Yes No NA

• 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? (12 CFR 1005.18(b))

NOTE: The history of account transactions must include the information set

forth in 12 CFR 1005.9(b). Yes No NA

58. Does the financial institution provide initial disclosures that include, at a

minimum:

• 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 a website, and a summary of the

consumer’s right to receive a written account history upon request,

including a telephone number to call to request a history, and Yes No NA

• A notice concerning error resolution? (12 CFR 1005.18(c)(1)) Yes No NA

59. Does the financial institution provide an annual notice concerning error

resolution or, alternatively, an abbreviated notice with each electronic and

written history? (12 CFR 1005.18(c)(2)) Yes No NA

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Consumer Compliance Handbook Reg. E • 61 (11/13)

60. Does the financial institution begin the 60-day period for reporting any

unauthorized transfer under 12 CFR 1005.6(b)(3) on the earlier of the date the

consumer electronically accesses the consumer’s account after the elec-

tronic history made available to the consumer reflects the transfer, or the date

the financial institution sends a written history of the consumer’s account

transactions requested by the consumer in which the unauthorized transfer is

first reflected? (12 CFR 1005.18(c)(3)) Yes No NA

NOTE: A financial institution may comply with the provision above by limiting

the consumer’s liability for an unauthorized transfer as provided under 12

CFR 1005.6(b)(3) for any transfer reported by the consumer within 120 days

after the transfer was credited or debited to the consumer’s account.

61. Does the financial institution comply with the error resolution requirements in

response to an oral or written notice of an error from the consumer that is

received by the earlier of 60 days after the date the consumer electronically

accesses the consumer’s account after the electronic history made available

to the consumer reflects the alleged error, or 60 days after the date the

financial institution sends a written history of the consumer’s account

transactions requested by the consumer in which the alleged error is first

reflected? (12 CFR 1005.18(c)(4)) Yes No NA

NOTE: The financial institution may comply with the requirements for resolving

errors by investigating 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.

Requirements for Gift Cards and Gift Certificates—12 CFR 1005.20

62. Does the institution offer gift certificates, store gift cards, general-use prepaid

cards, loyalty, award, or promotional gift cards? If no, do not complete this

section. Yes No NA

63. Determine if the institution offers consumers, primarily for personal, family, or

household purposes, in a specified amount, a card, code, or other device on

a prepaid basis, the following:

• Gift certificates—which may not be increased or reloaded in exchange for

payment; and are redeemable upon presentation at a single merchant or

an affiliated group of merchants for goods and services? (12 CFR

1005.20(a)(1)) Yes No NA

• Store gift cards—which may be increased or reloaded, in exchange for

payment; and are redeemable upon presentation at a single merchant or

an affiliated group of merchants for goods and services? (12 CFR

1005.20(a)(2)) Yes No NA

• General-use prepaid cards—which may be increased or reloaded, in

exchange for payment; and are redeemable upon presentation at multiple,

unaffiliated merchants for goods or services, or usable at automated teller

machines? (12 CFR 1005.20(a)(3)) Yes No NA

64. Do loyalty, award, or promotional gift cards as defined by (12 CFR

1005.20(a)(4)) contain the following disclosures as applicable?

• A statement indicating that the card, code, or other device is issued for

loyalty, award, or promotional purposes, which must be included on the

front of the card, code, or other device (12 CFR 1005.20(a)(4)(iii)(A)); Yes No NA

• The expiration date for the underlying funds, which must be included on the

front of the card, code, or other device (12 CFR 1005.20(a)(4)(iii)(B)); Yes No NA

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62 (11/13) • Reg. E Consumer Compliance Handbook

• The amount of fees that may be imposed in connection with the card, code,

or other device, and the conditions under which they may be imposed,

which must be provided with the card, code, or other device (12 CFR

1005.20(a)(4)(iii)(C)); and Yes No NA

• A toll-free telephone number and, if one is maintained, a website, that a

consumer may use to obtain fee information, which must be included on or

with the card, code, or other device (12 CFR 1005.20(a)(4)(iii)(D))? Yes No NA

65. If the terms of the gift certificate, store gift card, or general-use prepaid card

impose a dormancy, inactivity, or service fee as defined under (12 CFR

1005.20(a)), please answer the following:

• Has there been activity with respect to the certificate or card, in the

one-year period ending on the date on which the fee was imposed (12 CFR

1005.20(d)(1)); Yes No NA

• As applicable, are the following, clearly and conspicuously stated on the

gift certificate, store gift card, or general-use prepaid card Yes No NA

−The amount of any dormancy, inactivity, or service fee that may be

charged (12 CFR 1005.20(d)(2)(i)); Yes No NA

−How often such a fee may be assessed (12 CFR 1005.20(d)(2)(ii)); and Yes No NA

−That such fee may be assessed for inactivity (12 CFR 1005.20(d)(2)(iii))? Yes No NA

• Is the dormancy, inactivity, or service fee imposed limited to one in any

given calendar month (12 CFR 1005.20(d)(3))? Yes No NA

66. If the financial institution sells or issues a gift certificate, store gift card, or

general-use prepaid card with an expiration date, please answer the

following:

• Has the financial institution established policies and procedures to provide

consumers with a reasonable opportunity to purchase a certificate or card

with at least five years remaining until the certificate or card expiration date

(12 CFR 1005.20(e)(1))? Yes No NA

• The expiration date for the underlying funds is at least the later of five years

after the date the gift certificate was initially issued, or the date on which

funds were last loaded to a store gift card or general-use prepaid card; or

the certificate or card expiration date, if any (12 CFR 1005.20(e)(2))? Yes No NA

67. If the financial institution sells or issues a gift certificate, store gift card, or

general-use prepaid card with an expiration date, then are the following

disclosures provided on the certificate or card, as applicable:

• The expiration date for the underlying funds, or if the underlying funds do

not expire, the fact that the funds do not expire (12 CFR 1005.20(e)(3)(i)); Yes No NA

• A toll-free number and, if one is maintained, a website that a consumer may

use to obtain a replacement certificate or card after the certificate or card

expires if the underlying funds may be available (12 CFR 1005.20(e)(3)(ii));

and Yes No NA

• Except where a non-reloadable certificate or card bears an expiration date

that is at least seven years from the date of manufacture, a statement,

disclosed with equal prominence and in close proximity to the certificate or

card expiration date, that: Yes No NA

– The certificate or card expires, but the underlying funds either do not

expire or expire later than the certificate or card (12 CFR 1005.20(e)(3)

(iii)(A)); Yes No NA

– The consumer may contact the issuer for a replacement card (12 CFR

1005.20(e)(3)(iii)(B)); and Yes No NA

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Consumer Compliance Handbook Reg. E • 63 (11/13)

– No fee or charge is imposed on the cardholder for replacing the gift

certificate, store gift card, or general-use prepaid card or for providing

the certificate or card holder with the remaining balance in some manner

prior to the funds expiration date unless such certificate or card has

been lost or stolen. (12 CFR 1005.20(e)(4)). Yes No NA

68. Are the following disclosures provided in connection with a gift certificate,

store gift card, or general-use prepaid card, as applicable:

• For each type of fee that may be imposed in connection with the gift

certificate or card (other than a dormancy, inactivity, or service fee subject

to the disclosure requirements under (12 CFR 1005.20(d)(2)), the following

information must be provided on or with the certificate or card:

– The type of fee (12 CFR 1005.20(f)(1)(i)); Yes No NA

– The amount of the fee (or an explanation of how the fee will be

determined) (12 CFR 1005.20(f)(1)(ii)); and Yes No NA

– The conditions under which the fee may be imposed (12 CFR

1005.20(f)(1)(iii)). Yes No NA

• A toll-free telephone number and, if one is maintained, a website, that a

consumer may use to obtain information about dormancy, inactivity,

service, or each type of fee that may be imposed in connection with the

certificate or card (12 CFR 1005.20(f)(2)). Yes No NA

Subpart B—Requirements for Remittance Transfers

1. Does the provider offer remittance transfers in the normal course of

business? Yes No NA

If the provider deems itself to not offer remittance transfers in the normal

course of business as a result of the 100-transfer safe harbor, are the

provider’s method for counting transactions appropriate? Yes No NA

Complete the rest of the checklist if the provider offers remittance transfers in the

normal course of business.

2. Does the provider have written policies and operating procedures that

govern its remittance transfer operations? Yes No NA

3. Do these policies and procedures adequately address the requirements of

subpart B? Yes No NA

4. Are the provider’s personnel who are involved in remittance transfer

operations knowledgeable about the requirements of subpart B? Yes No NA

Disclosures—12 CFR 1005.31

(Unless otherwise indicated, the disclosure requirements apply to all remittance transfer transactions,

including those scheduled before the date of transfer.)

5. Does the provider provide prepayment disclosures and receipts or combined

disclosures to its remittance transfer customers (12 CFR 1005.31(b)(1), (2),

and (3))? Yes No NA

NOTE: Specific content of disclosures are addressed below.

6. Are written disclosures:

• in the appropriate form (12 CFR 1005.31(c)) Yes No NA

• clear and conspicuous (12 CFR 1005.31(a)(1)) Yes No NA

• in retainable form (12 CFR 1005.31(a)(2))? Yes No NA

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7. Are written and electronic disclosures provided in compliance with the

foreign language requirements of 12 CFR 1005.31(g)? Yes No NA

8. If the provider uses scripts to provide oral disclosures for remittance transfer

transactions and error resolution procedures conducted over the telephone,

do the contents of the scripts comply with the requirements of 12 CFR

1005.31(a)(3) and (a)(4)? Yes No NA

9. Do disclosures related to telephone, mobile application, or text message

transactions comply with the disclosure requirements with respect to foreign

languages and notice of cancellation rights? (12 CFR 1005.31(g)(2) and 12

CFR 1005.31(b)(2)(iv) Yes No NA

10. Does information in written or electronic disclosures comply with the

grouping requirements of 12 CFR 1005.31(c)(1)? Yes No NA

11. Is the exchange rate used for the remittance transfer generally disclosed in

close proximity to the other information in the prepayment disclosures? (12

CFR 1005.31(c)(2)) Yes No NA

12. In case of a disclosure that includes the disclaimer statement under 12 CFR

1005.31(b)(1)(viii), is the disclaimer in close proximity to the Total to

Recipient? (12 CFR 1005.31(c)(2)) Yes No NA

13. Are disclosures on error resolution and cancellation rights generally

disclosed in close proximity to the other disclosures on the receipt? (12 CFR

1005.31(c)(2)) Yes No NA

14. Are disclosures that are provided in writing or electronically provided in a

minimum of eight-point font, in equal prominence to each other, and on the

front of the page on which the disclosures are printed? (12 CFR

1005.31(c)(3)) Yes No NA

15. For disclosures that are provided in writing or electronically:

• do they contain only information directly related to the disclosures, and Yes No NA

• are they segregated from everything else? (12 CFR 1005.31(c)(4)) Yes No NA

16. Are estimated amounts in the disclosures appropriately described using the

term ‘‘estimated’’ or a substantially similar term in close proximity to the term

described? (12 CFR 1005.31(d)) Yes No NA

17. Are disclosures provided in compliance with the timing requirements of 12

CFR 1005.31(e)? Yes No NA

18. Do disclosures comply with the accuracy requirements of 12 CFR 1005.31(f)? Yes No NA

NOTE: For a one-time transfer scheduled five or more business days in

advance or for the first in a series of preauthorized remittance transfers,

disclosures must be accurate when a sender makes payment except to the

extent estimates are permitted. For any subsequent transfer in a series of

preauthorized remittance transfers, disclosures must be accurate as of the

date the preauthorized remittance transfer to which it pertains is made.

(12 CFR 1005.36(b).)

Prepayment disclosures—12 CFR 1005.31(b)(1)

19. Does the provider appropriately distinguish between covered and non-

covered third-party fees? Yes No NA

20. Do the provider’s prepayment disclosures appropriately disclose to the

recipient the following information as applicable, using the terms in quotes (or

substantially similar terms) listed below:

• ‘‘Transfer Amount’’ both in the currency in which transaction is funded and

in the currency in which the funds will be made available to the recipient; Yes No NA

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Consumer Compliance Handbook Reg. E • 65 (11/13)

• ‘‘Transfer Fees’’ and ‘‘Transfer Taxes’’; Yes No NA

• ‘‘Other Fees’’; Yes No NA

• ‘‘Exchange Rate’’; Yes No NA

• ‘‘Total to Recipient’’; and Yes No NA

• If applicable, a disclaimer statement that non-covered third-party fees or

taxes collected on the remittance transfer by a third person may apply,

resulting in the designated recipient receiving less than the amount

disclosed? (12 CFR 1005.31(b)(1)) Yes No NA

Receipt—12 CFR 1005.31(b)(2)

21. Do the provider’s receipts appropriately calculate and disclose to the

recipient the following information as applicable, using the terms in quotes (or

substantially similar terms) listed below, as applicable:

• all the information required to be provided in the prepayment disclosure; Yes No NA

• ‘‘Date Available’’; Yes No NA

• ‘‘Recipient’’; Yes No NA

• a statement about the sender’s error resolution and cancellation rights,

using language set forth in Model Form A-37 of Appendix A or substantially

similar language;

NOTE: If the transfer is scheduled at least three business days before the

date of the transfer, the statement about the sender’s cancellation rights

should reflect the requirements of 12 CFR1005.36(c).

• name, telephone number(s), and website of the provider; Yes No NA

• a statement that the sender can contact the state agency that licenses or

charters the remittance transfer provider with respect to the particular

transfer (if applicable) and the Consumer Financial Protection Bureau

(CFPB), for questions or complaints about the remittance transfer provider

using language set forth in Model Form A-37 of Appendix A or substantially

similar language; and Yes No NA

NOTE: The statement must include the name, telephone number(s), and

website of the state agency and the name, toll-free telephone number(s),

and website of the CFPB.

• the transfer date (only for transfers scheduled at least three business days

in advance, or the first transfer in a series of preauthorized remittance

transfers)? Yes No NA

Combined disclosure—12 CFR 1005.31(b)(3)

Complete this section if the provider provides combined disclosures as an alternative to prepayment

disclosures and receipts.

22. Does the combined disclosure contain all the information required to be

provided on the receipt? Yes No NA

23. Does the provider provide the combined disclosure when the sender

requests the remittance transfer, but prior to payment for the transfer; and

provide a proof of payment when payment is made for the transfer? Yes No NA

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66 (11/13) • Reg. E Consumer Compliance Handbook

NOTE:

1. The proof of payment must be clear and conspicuous, provided in writing

or electronically, and provided in a retainable form.

2. For one-time transfers scheduled five or more business days in advance or

for the first in a series of preauthorized transfers, the provider may provide

confirmation that the transaction has been scheduled in lieu of the proof of

payment if payment is not processed at the time the remittance transfer is

scheduled. No further proof of payment is required when payment is later

processed.

Long-form error resolution and cancellation notice—12 CFR 1005.31(b)(4)

24. Does the provider promptly provide, at the sender’s request, a notice

describing the sender’s error resolution and cancellation rights, using

language set forth in Model Form A-36 of Appendix A or substantially similar

language? (12 CFR 1005.31(b)(4)) Yes No NA

NOTE: For a remittance transfer scheduled at least three business days

before the date of the transfer, the description of the rights of the sender

regarding cancellation must instead reflect the requirements of 12 CFR

1005.36(c).

Estimates—12 CFR 1005.32

Temporary exception for insured institutions—12 CFR 1005.32(a)

25. If the remittance transfer provider is an insured institution (as defined by 12

CFR 1005.32(a)(3)), does the institution use estimates in its disclosures for

transactions sent from the sender’s account with the institution? Yes No NA

26. If so, can the financial institution not determine the exact amounts for reasons

beyond its control because a person other than the institution or with which

the institution has no correspondent relationship sets the exchange rate

required to be disclosed or imposes a fee required to be disclosed? (12 CFR

1005.32(a) and Comment 32(a)(1)-1) Yes No NA

Permanent exception for transfers to certain countries—12 CFR 1005.32(b)(1)

27. Does the provider appropriately rely on the list provided by the CFPB when

using estimates under the permanent exception set forth under 12 CFR

1005.32(b)(1) for transactions to those countries? Yes No NA

28. If the provider provides estimates for transactions in a country which does not

appear on the safe harbor list published by the CFPB, does the entity

appropriately determine that the laws of or the method by which transactions

are conducted in the recipient country do not permit the determination of

exact amounts? (12 CFR 1005.32(b)(1)(ii) and Comment 32(b)-5) Yes No NA

NOTE: A provider cannot rely on the CFPB list if it has information that the laws

of a country on the list permit exact disclosures.

Permanent exception for transfers scheduled before the date of transfer—12 CFR

1005.32(b)(2)

29. For transfers scheduled five or more business days before the date of the

transfer for which estimates may be provided, does the provider comply with

the requirements of 12 CFR 1005.32(b)(2)? Yes No NA

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Consumer Compliance Handbook Reg. E • 67 (11/13)

Permanent exception for optional disclosure of non-covered third-party fees and taxes

collected by a third party—12 CFR 1005.32(b)(3)

30. If the provider includes in the disclaimer statement required by 12 CFR

1005.31(b)(1)(viii), an optional estimated disclosure of applicable non-

covered third-party fees or taxes, are the estimates based on reasonable

sources? (12 CFR 1005.32(b)(3)? Yes No NA

Bases for Estimates—12 CFR 1005.32(c)

31. Are the bases used to derive the estimates under 12 CFR 1005.32(a), (b)(1),

and (b)(2) in compliance with the method for disclosing estimates set forth in

12 CFR 1005.32(c)? Yes No NA

NOTE: For transfers scheduled five or more business days before the date of

the transfer for which estimates may be provided, the requirements of 12 CFR

1005.32(d) apply.

32. Does the provider use the approaches listed in the rule to estimate:

• exchange rate; Yes No NA

• transfer amount in which funds will be received; Yes No NA

• covered third-party fees; and Yes No NA

• the amount of currency that will be received by the designated recipient? Yes No NA

33. If estimates are based on an approach that is not one of the listed bases,

does the designated recipient receive the same, or greater, amount of funds

than the remittance transfer provider disclosed? Yes No NA

Procedures for Resolving Errors—12 CFR 1005.33

34. Does the provider have adequate policies and procedures to address the

error resolution requirements applicable to remittance transfers (12 CFR

1005.33(g))? Yes No NA

35. Do the policies and procedures adequately state what constitutes an error

and what does not as defined in 12 CFR 1005.33(a)? Yes No NA

36. Do the policies and procedures specifically address:

• timing and content of the sender’s notice of error (12 CFR 1005.33(b)(1)); Yes No NA

• provider’s request for additional information or clarification (12 CFR

1005.33(b)(2)); Yes No NA

• time limits for investigation, reporting results, and correcting an error (12

CFR 1005.33(c)); Yes No NA

• sender’s request for documentation that the provider relied on to make a

decision (12 CFR 1005.33(d)); and Yes No NA

• the retention of records related to error investigations (12 CFR 1005.33

(g)(2) and (12 CFR 1005.13))? Yes No NA

37. Does the provider complete its investigation of alleged errors and determine

whether an error occurred within 90 days of receiving notice of the error (12

CFR 1005.33(c))? Yes No NA

38. Does the provider report investigation results to the sender within three

business days after completing its investigation and include notice of any

remedies available for correcting any error determined to have occurred and

provide remedy within one business day (12 CFR 1005.33(c))? Yes No NA

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68 (11/13) • Reg. E Consumer Compliance Handbook

NOTE: The provider can ask the sender to designate a preferred remedy at

the time the sender provides notice of the error but must indicate that a

resend remedy may be unavailable if the error occurred because the sender

provided incorrect or insufficient information.

39. If the sender provided an incorrect account number or recipient institution

identifier, does the provider comply with the requirements of 12 CFR

1005.33(h) in determining that no error occurred? Yes No NA

40. If the provider determines that no error or a different error occurred, does it

provide a written explanation of the findings, and note the sender’s right to

request the documents upon which the provider relied in making its

determination (12 CFR 1005.33(d))? Yes No NA

41. If the provider provides a default remedy, does it correct the error within one

business day or as soon as reasonably practicable, after the reasonable time

(deemed to be 10 business days) or the sender to designate the remedy has

passed? Yes No NA

NOTE: A default remedy is not applicable where the sender provided

incorrect or insufficient information.

42. If the sender requests a refund (for errors other than those related to failure

to deliver by the disclosed date where the sender provided incorrect or

insufficient information), does the provider refund within one business day or

as soon as reasonably practicable thereafter (12 CFR 1005.33(c)(2)(A))? Yes No NA

NOTE: The provider may generally, at its discretion, issue a refund either in

cash or in the same form of payment that was initially provided by the sender

for the remittance transfer.

43. If the sender requests delivery of the amount appropriate to correct the error

and the error did not occur because the sender provided incorrect or

insufficient information, does the provider correct the error within one

business day, or as soon as reasonably practicable, applying the same

exchange rate, fees, and taxes stated in the disclosure provided in

connection with the unsuccessful remittance transfer attempt (Comment

33(c)-3)? Yes No NA

44. In the case of errors involving incorrect or insufficient information provided by

the sender for the transfer, does the provider comply with the requirements of

12 CFR 1005.33(c)(2)(iii)? Yes No NA

45. If the provider determines that an error occurred that relates to: Yes No NA

• an incorrect amount paid by the sender;

• a computational or bookkeeping error made by the remittance transfer

provider; or

• failure to make the amount of currency stated in the disclosures available

to the designated recipient,

does the provider either:

• refund the amount of funds provided by the sender (in case of a transaction

that was not properly transmitted);

• refund the amount appropriate to resolve the error; or

• make available to the designated recipient, the amount appropriate to

resolve the error without additional cost to the sender or the designated

recipient (12 CFR 1005.33(c)(2)(i))?

46. If the error relates to the failure to make funds available to the designated

recipient by the disclosed date of availability (except in cases where the

sender provided incorrect or insufficient information), does the provider Yes No NA

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Consumer Compliance Handbook Reg. E • 69 (11/13)

• either (i) refund the amount of funds that was not properly transmitted, or

the amount appropriate to resolve the error to the sender; or (ii) make

available to the designated recipient the amount appropriate to resolve the

error;

and

• refund to the sender any fees and, to the extent not prohibited by law, taxes

imposed for the remittance transfer? (12 CFR 1005.33(c)(2)(ii))

47. If an error occurred, does the provider impose a charge related to any aspect

of the error resolution process (including charges for documentation or

investigation)? (Comment 33(c)-9) If so, is the provider in violation of 12 CFR

1005.33(c)? Yes No NA

48. Does the provider retain policies and procedures and documentation,

including those related to error investigations, for a period of not less than two

years from the date a notice of error was submitted to the provider or action

was required to be taken by the provider (12 CFR 1005.33(g) and 1005.13)? Yes No NA

Procedures for Cancellation and Refund of Remittance Transfers—12 CFR 1005.34

49. Does the provider comply with any oral or written request to cancel a

remittance transfer (except for transfers scheduled three or more business

days before the date of transfer) from the sender that is received no later than

30 minutes after the sender makes payment in connection with the remittance

transfer? (12 CFR 1005.34(a)) Yes No NA

NOTE: The request to cancel must enable the provider to identify the sender’s

name and address or telephone number and the particular transfer to be

cancelled; and the transferred funds must not have been picked up by the

designated recipient or deposited into an account of the designated

recipient. (12 CFR 1005.34(a)(1) and (2))

50. If a sender provides a timely request to cancel a remittance transfer, does the

provider refund all funds provided by the sender in connection with the

remittance transfer at no additional cost to the sender, within three business

days of receiving the request? (12 CFR 1005.34(b)) Yes No NA

NOTE: The funds to be refunded include any fees and, to the extent not

prohibited by law, taxes that have been imposed for the transfer, whether the

fee or tax was assessed by the provider or a third party, such as an

intermediary institution, the agent or bank in the recipient country, or a state

or other governmental body (12 CFR 1005.34(b)).

Acts of Agents—12 CFR 1005.35

51. Has the provider established and maintained policies or procedures,

including policies, procedures for compliance, or other appropriate oversight

measures designed to assure compliance by an agent or authorized

delegate acting for such provider? Yes No NA

Consider:

• the degree of control the agent exercises over the remittance transfer

activities performed on the provider’s behalf; Yes No NA

• the quality and frequency of training provided to ensure that agents are

aware of the regulatory requirements and the provider’s internal policy

guidelines; and Yes No NA

• the adequacy of the provider’s oversight of agents’ activities. Yes No NA

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70 (11/13) • Reg. E Consumer Compliance Handbook

Transfers Scheduled before the Date of Transfer—12 CFR 1005.36

52. For one-time transfers scheduled five or more business days in advance or

for the first in a series of preauthorized remittance transfers, does the

provider provide either a prepayment disclosure and a receipt or a combined

disclosure at the time the sender requests the transfer but prior to payment?

(12 CFR 1005.36(a)(1)(i)) Yes No NA

NOTE: If any of the disclosures provided contain estimates, the provider must

mail or deliver an additional receipt no later than one business day after the

date of the transfer. If the transfer involves the transfer of funds from the

sender’s account held by the provider, this additional receipt may be

provided on or with the next periodic statement for that account or within 30

days after the date of the transfer if a periodic statement is not provided. (12

CFR 1005.36(a)(1)(ii))

53. For each subsequent preauthorized remittance transfer, does the provider

provide an updated receipt if any of the information (other than temporal

disclosures or disclosures that are permitted to be estimated) on the most

recent receipt is no longer accurate? (12 CFR 1005.36(a)(2)(i)) Yes No NA

NOTE: The receipt must clearly and conspicuously indicate that it contains

updated disclosures and must be mailed or delivered to the sender within a

reasonable time prior to the scheduled date of the next subsequent

preauthorized remittance transfer. A disclosure that is mailed no later than 10

business days or hand or electronically delivered no later than 5 business

days is deemed to have been provided within a reasonable time. (12 CFR

1005.36(a)(2)(i) and Comment 36(a)(2)-3)

54. If there is no updated information and the remittance transfer does not involve

the transfer of funds from the sender’s account held by the provider, does the

provider mail or deliver to the sender a receipt no later than one business day

after the date of the transfer for each subsequent preauthorized transfer? (12

CFR 1005.36(a)(2)(ii)) Yes No NA

55. If there is no updated information and the remittance transfer involves the

transfer of funds from the sender’s account held by the provider, is the

receipt provided on or with the next periodic statement for that account, or

within 30 days after the date of the transfer if a periodic statement is not

provided? (12 CFR 1005.36(a)(2)(ii)) Yes No NA

56. For any subsequent transfer in a series of preauthorized remittance transfers,

does the provider disclose the date of the subsequent transfer using the term

‘‘Future Transfer Date’’ or a substantially similar term, a statement of the

sender’s cancellation rights, and the name, telephone number(s), and

website of the remittance transfer provider no more than 12 months, and no

less than 5 business days prior to, the date of the subsequent preauthorized

remittance transfer? (12 CFR 1005.36(d)) Yes No NA

NOTE: While the rule generally provides flexibility as to when and where future

transfer dates may be disclosed, for any subsequent preauthorized

remittance transfer for which the date of transfer is four or fewer business

days after the date payment is made, the disclosure must generally be

provided on or with the receipt for the initial transfer in that series. (12 CFR

1005.36(d)(2)(ii))

57. Does the provider comply with any oral or written request to cancel any

remittance transfer scheduled by the sender at least three business days

before the date of the remittance transfer? (12 CFR 1005.36(c)) Yes No NA

NOTE: The request to cancel must

• enable the provider to identify the sender’s name and address or telephone

number and the particular transfer to be cancelled; and

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Consumer Compliance Handbook Reg. E • 71 (11/13)

• be received by the provider at least three business days before the

scheduled date of the remittance transfer. (12 CFR 1005.36(c))

Comments

Electronic Fund Transfer Act: Examination Checklist

72 (11/13) • Reg. E Consumer Compliance Handbook

No Job Name Fource 21100 Efta

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