[Federal Register Volume 84, Number 83 (Tuesday, April 30, 2019)]
[Notices]
[Pages 18286-18289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08714]


-----------------------------------------------------------------------

FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice, request for comment.

-----------------------------------------------------------------------

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
invites comment on a proposal to extend for three years, with revision, 
the Recordkeeping and Disclosure Requirements Associated with the 
Bureau of Consumer Financial Protection's (Bureau) Regulation E 
(Electronic Fund Transfers) (FR E; OMB No. 7100-0200).

DATES: Comments must be submitted on or before July 1, 2019.

ADDRESSES: You may submit comments, identified by FR E, by any of the 
following methods:
     Agency website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Email: [email protected]. Include Office of 
Management and Budget (OMB) number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available from the Board's website at 
http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room 
146, 1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. 
and 5:00 p.m. on weekdays. For security reasons, the Board requires 
that visitors make an appointment to inspect comments. You may do so by 
calling (202) 452-3684. Upon arrival, visitors will be required to 
present valid government-issued photo identification and to submit to 
security screening in order to inspect and photocopy comments.
    Additionally, commenters may send a copy of their comments to the 
OMB Desk Officer--Shagufta Ahmed--Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, Room 10235, 725 17th Street NW, Washington, DC 20503, or by 
fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: A copy of the Paperwork Reduction Act 
(PRA) OMB submission, including the proposed reporting form and 
instructions, supporting statement, and other documentation will be 
placed into OMB's public docket files, if approved. These documents 
will also be made available on the Board's public website at http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears below.
    Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of 
the Chief Data Officer, Board of

[[Page 18287]]

Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829. Telecommunications Device for the Deaf (TDD) users may 
contact (202) 263-4869, Board of Governors of the Federal Reserve 
System, Washington, DC, 20551.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the PRA to approve and assign OMB control numbers to 
collection of information requests and requirements conducted or 
sponsored by the Board. In exercising this delegated authority, the 
Board is directed to take every reasonable step to solicit comment. In 
determining whether to approve a collection of information, the Board 
will consider all comments received from the public and other agencies.

Request for Comment on Information Collection Proposal

    The Board invites public comment on the following information 
collection, which is being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Board's functions, including whether the 
information has practical utility;
    b. The accuracy of the Board's estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.
    At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the Board 
should modify the proposal.

Proposal Under OMB Delegated Authority To Extend for Three Years, With 
Revision, the Following Information Collection

    Report title: Recordkeeping and Disclosure Requirements Associated 
with the Bureau of Consumer Financial Protection's (Bureau) Regulation 
E (Electronic Fund Transfers (EFT)).
    Agency form number: FR E.
    OMB control number: 7100-0200.
    Frequency: Event-generated.
    Respondents: State member banks (SMBs) and their subsidiaries, 
subsidiaries of bank holding companies, U.S. branches and agencies of 
foreign banks (other than federal branches, federal agencies, and 
insured state branches of foreign banks), commercial lending companies 
owned or controlled by foreign banks, and organizations operating under 
section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601-604a; 611-
631).
    Estimated number of respondents: Gift card exclusion policies and 
procedures, Gift card policy and procedures, Transmitter error 
resolution standards and recordkeeping requirements, Acts of agents, 
Initial disclosures, Change-in-terms, Error resolution, Remittance 
transfer disclosures, and Time limits and extent of investigations, 970 
respondents; Periodic statements, 71 respondents; Pre-acquisition 
disclosures (short form disclosure)--one time, Pre-acquisition 
disclosures (long form disclosure)--one time, Periodic statement 
alternative--one time, and Pre-acquisition disclosures (short form 
disclosure)--ongoing, 5 respondents; and internet posting and 
submission of prepaid account agreements--one time and internet posting 
and submission of prepaid account agreements--ongoing, 6 respondents.
    Estimated average hours per response: Gift card exclusion policies 
and procedures, Gift card policy and procedures, Transmitter error 
resolution standards and recordkeeping requirements, Acts of agents, 
Remittance transfer disclosures, and Pre-acquisition disclosures (long 
form disclosure)--one time, 8 hours; Initial disclosures, 0.03 hours; 
Change-in-terms, 0.02 hours; Periodic statements, 7 hours; Error 
resolution, 0.5 hours; Time limits and extent of investigation, 4.5 
hours; Pre-acquisition disclosures (short form disclosure)--one time, 
40 hours; Periodic statement alternative--one time, 24 hours; internet 
posting and submission of prepaid account agreements--one time, 1 hour; 
Pre-acquisition disclosures (short form disclosure)--ongoing, 4 hours; 
and internet posting and submission of prepaid account agreements--
ongoing, 0.08 hours.
    Estimated annual burden hours: Gift card exclusion policies and 
procedures, Gift card policy and procedures, Transmitter error 
resolution standards and recordkeeping requirements, and Acts of 
agents, 7,760 hours; Initial disclosures, 7,275 hours; Change-in-terms, 
6,596 hours; Periodic statements, 5,964 hours; Error resolution, 14,550 
hours; Remittance transfer disclosures, 93,120 hours; Time limits and 
extent of investigations, 52,380 hours; Pre-acquisition disclosures 
(short form disclosure)--one time, 1,914 hours, Pre-acquisition 
disclosures (long form disclosure)--one time, 383 hours; internet 
posting and submission of prepaid account agreements--one time, 6 
hours, Pre-acquisition disclosures (short form disclosure)--ongoing, 
191 hours; Periodic statement alternative--one time, 1,148 hours, and 
internet posting and submission of prepaid account agreements--ongoing, 
2 hours.
    General description of report: The Electronic Funds Transfer Act 
(EFTA) requires consumers be provided meaningful disclosures about the 
basic terms, costs, and rights relating to electronic fund transfer 
(EFT) services involving a consumer's account. The disclosures required 
by the EFTA are triggered by specific events. The disclosures inform 
consumers, for example, about the terms of the EFT service, activity on 
the account, potential liability for unauthorized transfers, and the 
process for resolving errors.
    Proposed revisions: Beginning April 1, 2019, entities subject to 
the Bureau's Regulation E will be required to comply with the following 
recordkeeping and disclosure requirements related to prepaid accounts 
in accordance with the Bureau's new final rule.

Pre-Acquisition Disclosures (Section 1005.18(b))

    Before a consumer acquires a prepaid account, a financial 
institution would be required to provide a consumer with a short form 
disclosure and a long form disclosure. The short form disclosure would 
be required to include: Certain fee information--including any periodic 
fee, per purchase fee, ATM withdrawal fee, cash reload fee, ATM balance 
inquiry fee, customer service fee, and inactivity fee (collectively, 
``static fees''); the number of fee types in addition to the static 
fees; two additional fee types that generated the highest revenue from 
consumers during the previous 24 months; statements regarding linked 
overdraft credit features, registration, and Federal Deposit Insurance 
Corporation (FDIC)/National Credit Union Association (NCUA) insurance; 
a reference to the Bureau's website containing information on prepaid 
accounts; and information on where the consumer can find the long form 
disclosure. For payroll card accounts, the short form disclosure would 
be required to include a statement regarding options to receive wages 
or salary from the employer. For

[[Page 18288]]

government benefit accounts, the short form disclosure would be 
required to include a statement regarding options to receive government 
benefits. Furthermore, the Bureau requires a financial institution to 
disclose, in conjunction with the short form disclosure, its name, the 
name of the prepaid account program, any purchase price for the prepaid 
account, and any fee for activating the prepaid account.
    The long form disclosure would be required to include: A title, 
including the name of the prepaid account program; information about 
all fees and the conditions under which they may be imposed; a 
statement regarding registration and FDIC/NCUA insurance; a statement 
regarding linked overdraft credit features; a statement containing the 
financial institution's contact information; a reference to the 
Bureau's website containing information on prepaid accounts; and a 
reference to the Bureau's website and telephone number to submit 
complaints.
    Generally, these disclosures would be required to be provided 
before a consumer acquires a prepaid account, though there are certain 
exceptions. For prepaid accounts sold at retail locations, however, a 
financial institution may provide the long form disclosure after 
acquisition if the short form disclosure contains information enabling 
the consumer to access the long form disclosure by telephone or on a 
website and other requirements are met. A similar accommodation is made 
for prepaid accounts acquired orally by telephone.
    The pre-acquisition disclosures would be required to follow 
specific formatting rules, and, for the short form disclosures, be 
substantially similar to model forms. If the financial institution uses 
a foreign language in connection with a consumer's acquisition of a 
prepaid account, a financial institution would generally be required to 
provide the pre-acquisition disclosures in that foreign language.

Periodic Statement Alternative (Section 1005.18(c))

    Financial institutions will be required to provide periodic 
statements for prepaid accounts either by providing a periodic 
statement that complies with section 1005.9(b) or, as an alternative, 
by making transaction information available to the consumer by 
telephone, electronically, and in writing upon the consumer's request 
pursuant to section 1005.18(c).

Initial Disclosures (Sections 1005.18(d)(1)(i) and 1005.18(f)(1))

    Financial institutions will be required to include in the initial 
disclosure required by section 1005.7 all the information required to 
be disclosed in the pre-acquisition long form disclosure. If a 
financial institution chooses to provide the alternative disclosures 
instead of a regular periodic statement, it must modify some of the 
disclosures included in the initial disclosures.
    The Bureau determined and the Board agrees that financial 
institutions already engage in these activities as usual and customary 
activities, as defined under 5 CFR 1320.3(b)(2). Therefore, under 5 CFR 
1320.3(b)(2), there is no additional burden for these provisions.

Error Resolution Notice and Procedures for Resolving Errors (Sections 
1005.18(d)(1)(ii), 1005.18(d)(2), and 1005.18(e))

    Prepaid accounts will be required to comply with the limited 
liability error resolution requirements applicable to other accounts 
subject to Regulation E. For prepaid accounts where the financial 
institution provides alternative disclosures to regular periodic 
statements, the timing requirements for the error resolution procedures 
are modified. For prepaid accounts that are not payroll card accounts 
or government benefit accounts, a financial institution will generally 
not be required to comply with the liability limits for unauthorized 
transactions and error resolution requirements for any prepaid account 
for which it has not successfully completed its consumer identification 
and verification process.
    A notice concerning error resolution, provided with the initial 
disclosures and substantially similar to the Bureau's model form for 
prepaid accounts, will be required to be provided in place of the 
notice required by section 1005.7(b)(10). Alternatively, for prepaid 
account programs for which the financial institution does not have a 
consumer identification and verification process, the financial 
institution will be required to describe its error resolution process 
and limitations on consumers' liability for unauthorized transfers or, 
if none, state that there are no such protections.
    An annual error resolution notice substantially similar to the 
model form for prepaid accounts would be required to be provided in 
place of the notice required by section 1005.8(b). Alternatively, a 
financial institution may include on or with each electronic and 
written account transaction history, a notice substantially similar to 
the abbreviated notice for periodic statements contained in the model 
forms, modified as necessary to reflect the error resolution procedures 
the financial institution is required to follow.
    The Bureau determined and the Board agrees that financial 
institutions already engage in these activities as usual and customary 
activities, as defined under 5 CFR 1320.3(b)(2). Therefore, under 5 CFR 
1320.3(b)(2), there is no additional burden for these provisions.

Change-In-Terms Notice (Section 1005.18(f)(2))

    The change-in-terms notice provisions in section 1005.8(a) apply to 
any change in a term or condition that is required to be disclosed 
under 1005.7 or 1005.18(f)(1) for a prepaid account.
    The Board believes that financial institutions already engage in 
these activities as usual and customary activities, as defined under 5 
CFR 1320.3(b)(2). Therefore, under 5 CFR 1320.3(b)(2), there is no 
additional burden for these provisions.

Disclosures on Device or Entry Point (Section 1005.18(f)(3))

    Financial institutions will be required to disclose on the prepaid 
account access device the name of the financial institution and the 
website and telephone number a consumer can use to contact the 
financial institution about the prepaid account. If a financial 
institution does not provide a physical access device in connection 
with a prepaid account, the disclosure will be required to appear on 
the website, mobile application, or other entry point a consumer must 
visit to access the prepaid account electronically.
    The Bureau determined and the Board agrees that financial 
institutions already engage in these activities as usual and customary 
activities, as defined under 5 CFR 1320.3(b)(2). Therefore, under 5 CFR 
1320.3(b)(2), there is no additional burden for these provisions.

Internet Posting and Submission of Prepaid Account Agreements (Section 
1005.19)

    Prepaid account issuers will generally be required to submit to the 
Bureau new and amended prepaid account agreements and notification of 
withdrawn agreements no later than 30 days after the issuer offers, 
amends, or ceases to offer the agreement. The rule will provide a de 
minimis exception and a limited product testing exception to this 
requirement.
    If an issuer is required to submit a prepaid account agreement to 
the Bureau and the prepaid account

[[Page 18289]]

agreement is offered to the general public, the issuer will also be 
required to post the account agreement in a prominent and readily 
accessible location on its website. If a prepaid account agreement is 
not posted on the issuer's website, the issuer must provide a consumer 
with a copy of the consumer's prepaid account agreement no later than 
five business days after the issuer receives the consumer's request for 
the agreement. The consumer must be able to request the agreement by 
phone.
    Legal authorization and confidentiality: Section 904 of the EFTA 
(12 U.S.C. 1693b) authorizes the Bureau to issue regulations to carry 
out the purposes of the EFTA, which establishes the basic rights, 
liabilities, and responsibilities of consumers who use EFT and 
remittance transfer services and of financial institutions or other 
persons that offer these services. The Bureau's Regulation E, 12 CFR 
part 1005, implements the EFTA. An institution's recordkeeping and 
disclosure obligations under Regulation E are mandatory. Because the 
Board does not collect any information pursuant to the Bureau's 
Regulation E, no issue of confidentiality normally arises. In the event 
the Board were to obtain information regarding consumer EFT 
transactions during the course of an examination, such information may 
be kept confidential under section (b)(8) of the Freedom of Information 
Act, which protects information contained in or related to an 
examination of a financial institution (5 U.S.C. 522 (b)(8)).
    Consultation outside the agency: The Board consulted with Bureau 
staff regarding the estimated burden of this information collection.

    Board of Governors of the Federal Reserve System, April 25, 
2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-08714 Filed 4-29-19; 8:45 am]
 BILLING CODE 6210-01-P