[Federal Register Volume 84, Number 175 (Tuesday, September 10, 2019)]
[Notices]
[Pages 47505-47507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19520]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is adopting 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). The revisions are applicable
immediately.
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of
Governors of the Federal Reserve System, Washington, DC 20551, (202)
452-3829.
Office of Management and Budget (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.
A copy of the PRA OMB submission, including the reporting form and
instructions, supporting statement, and other documentation will be
placed into OMB's public docket files. These documents also are
available on the Federal Reserve Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears above.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the Paperwork Reduction Act (PRA) to approve and assign
OMB control numbers to collections of information conducted or
sponsored by the Board. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. Copies of the PRA Submission, supporting
statements, and approved collection of information instrument(s) are
placed into OMB's public docket files.
Final Approval Under OMB Delegated Authority of the Extension for Three
Years, With Revision, of 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).
Agency form number: FR E.
OMB control number: 7100-0200.
Effective Date: Immediately.
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
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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.
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)).
Current actions: On April 30, 2019, the Board published a notice in
the Federal Register (84 FR 18286) requesting public comment for 60
days on the extension, with revision, of the Recordkeeping and
Disclosure Requirements Associated with the Bureau of Consumer
Financial Protection's (Bureau) Regulation E (Electronic Fund
Transfers). Beginning April 1, 2019, entities subject to the Bureau's
Regulation E were 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 is required to provide a consumer with a short form
disclosure and a long form disclosure. The short form disclosure is
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 is
required to include a statement regarding options to receive wages or
salary from the employer. For government benefit accounts, the short
form disclosure is 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 is 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 are 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 are 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
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with a consumer's acquisition of a prepaid account, a financial
institution is generally required to provide the pre-acquisition
disclosures in that foreign language.
Periodic Statement Alternative (Section 1005.18(c))
Financial institutions are 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 are 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 are 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 is generally not required to
comply with the liability limits and error resolution requirements in
sections 1005.6 and 1005.11 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, is 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 is
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 is 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 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.
Disclosures on Device or Entry Point (Section 1005.18(f)(3))
Financial institutions are 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 is 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 are generally 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 provides 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 agreement is offered to
the general public, the issuer is also 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.
The comment period for this notice expired on July 1, 2019. The
Board did not receive any comments. The revisions will be implemented
as proposed.
Board of Governors of the Federal Reserve System, September 5,
2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-19520 Filed 9-9-19; 8:45 am]
BILLING CODE 6210-01-P