[Federal Register Volume 84, Number 213 (Monday, November 4, 2019)]
[Notices]
[Pages 59446-59449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23960]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Revision; Submission for OMB Review; Regulation E--Electronic Fund 
Transfer Act and Regulation Z--Truth in Lending Act

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other federal 
agencies to take this opportunity to comment on a continuing 
information collection as required by the Paperwork Reduction Act of 
1995 (PRA).
    An agency may not conduct or sponsor, and respondents are not 
required to respond to, an information collection unless it displays a 
currently valid Office of Management and Budget (OMB) control number.
    The OCC is soliciting comment concerning revisions to the 
information collections titled ``Regulation E--Electronic Fund Transfer 
Act'' and ``Regulation Z--Truth in Lending Act.'' The OCC also is 
giving notice that it has sent the collection to OMB for review.

DATES: Comments must be submitted on or before December 4, 2019.

ADDRESSES: Commenters are encouraged to submit comments by email, if 
possible. You may submit comments by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Attention: Comment 
Processing, 1557-NEW, Office of the Comptroller of the Currency, 400 
7th Street SW, Suite 3E-218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-NEW'' in your comment. In general, the OCC will publish comments 
on www.reginfo.gov without change, including any business or personal 
information provided, such as name and address information, email 
addresses, or phone numbers. Comments received, including attachments 
and other supporting materials, are part of the public record and 
subject to public disclosure. Do not include any information in your 
comment or supporting materials that you consider confidential or 
inappropriate for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-NEW, U.S. Office of Management and Budget, 725 17th 
Street NW, #10235, Washington, DC 20503 or by email to 
[email protected].
    You may review comments and other related materials that pertain to 
this information collection \1\ following the close of the 30-day 
comment period for this notice by any of the following methods:
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    \1\ On May 20, 2019, the OCC published a 60-day notice for this 
information collection, 84 FR 22931.
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     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu 
select ``Department of Treasury'' and then click ``submit.'' This 
information collection can be located by searching by OMB control 
number ``1557-NEW'' or ``Regulation E--Electronic Fund Transfer Act'' 
and ``Regulation Z--Truth in Lending Act.'' Upon finding the 
appropriate information collection, click on the related ``ICR 
Reference Number.'' On the next screen, select ``View Supporting 
Statement and Other Documents'' and then click on the link to any 
comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.
     Viewing Comments Personally: You may personally inspect 
comments at the OCC, 400 7th Street SW, Washington, DC. For security 
reasons, the OCC requires that visitors make an appointment to inspect 
comments. You may do so by calling (202) 649-6700 or, for persons who 
are deaf or hearing impaired, TTY, (202) 649-5597. Upon arrival, 
visitors will be required to present valid government-issued photo 
identification and submit to security screening in order to inspect 
comments.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance 
Officer, (202) 649-5490 or, for persons who are deaf or hearing 
impaired, TTY, (202) 649-5597, Chief Counsel's Office, Office of the 
Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219.

[[Page 59447]]


SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501 et seq.), 
federal agencies must obtain approval from the OMB for each collection 
of information that they conduct or sponsor. ``Collection of 
information'' is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to 
include agency requests or requirements that members of the public 
submit reports, keep records, or disclose information to a third party. 
The OCC asks that it approve the information collection contained in 
this notice.
    Title: Regulation E--Electronic Fund Transfer Act and Regulation 
Z--Truth in Lending Act.
    OMB Control Nos.: 1557-NEW.\2\
    Type of Review: Regular review.
    Description: The Electronic Fund Transfer Act (EFTA) \3\ and 
Regulation E \4\ require disclosure of basic terms, costs, and rights 
relating to electronic fund transfer services debiting or crediting a 
consumer's account. The Truth in Lending Act (TILA) \5\ and Regulation 
Z \6\ require that the costs and terms of credit be disclosed to 
consumers.
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    \2\ Regulations E and Z are currently covered by OMB Control No. 
1557-0176, which also covers other consumer regulations. The OCC is 
requesting a new control number for this portion of Regulations E 
and Z only.
    \3\ 15 U.S.C. 1693 et seq.
    \4\ 12 CFR part 1005.
    \5\ 15 U.S.C. 1601 et seq.
    \6\ 12 CFR part 1026.
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    The Prepaid Accounts final rules issued by the Consumer Financial 
Protection Bureau (CFPB) \7\ require financial institutions to make 
available to consumers disclosures before a consumer acquires a prepaid 
account. This notice outlines the requirements of the 2016 rule as 
amended by the 2018 rule.
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    \7\ 81 FR 83934 (November 22, 2016) and 83 FR 6364 (February 13, 
2018).
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Regulation E

    Under 12 CFR 1005.18(b), a financial institution is required to 
make available a short form and a long form disclosure before the 
consumer acquires a prepaid account, subject to certain exceptions. 
Most of the content required in the long form disclosure is already 
provided in prepaid account agreements. Section 1005.18(f)(3) requires 
that certain disclosures be made on the actual prepaid account access 
device, including the name of the financial institution and the URL of 
its website, and a telephone number the consumer may use to contact the 
financial institution about the prepaid account.
    Financial institutions offering prepaid accounts that qualify for 
the retail location exception in Sec.  1005.18(b)(1)(ii) may meet the 
requirement of providing the long form disclosure after acquisition by 
allowing the long form disclosure to be delivered electronically, 
without receiving consumer consent under the E-Sign Act,\8\ if the 
disclosure is not provided inside the prepaid account packaging 
material and the financial institution is not otherwise mailing or 
delivering to the consumer written account-related communications 
within 30 days of obtaining the consumer's contact information. If a 
financial institution provides pre-acquisition disclosures in writing 
and a consumer subsequently completes the acquisition process online or 
by telephone, the financial institution is not required to provide the 
disclosures again either electronically or orally. Financial 
institutions that disclose additional fee types with three or more fee 
variations may consolidate them into two categories and disclose them 
on the short form.
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    \8\ Electronic Signatures in Global and National Commerce Act 
(E-Sign Act) (15 U.S.C. 7001 et seq.).
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    Section 1005.18(b)(9)(i)(C) includes a requirement that a financial 
institution provide pre-acquisition disclosures in a foreign language 
if the financial institution provides a means for the consumer to 
acquire a prepaid account by telephone or electronically principally in 
that foreign language. That requirement is not applicable to payroll 
card accounts and government benefit accounts where the foreign 
language is offered by telephone only via a real-time language 
interpretation service provided by a third party or directly by an 
employer or government agency on an informal or ad hoc basis as an 
accommodation to prospective payroll card account or government benefit 
account recipients.
    Section 1005.18(c)(1) requires financial institutions to furnish 
periodic statements to the consumer unless the provider uses the 
alternative method of compliance. Under this alternative method, the 
periodic statements must include: (1) A telephone number that the 
consumer may call to obtain the account balance; (2) the means by which 
the consumer can obtain an electronic account history, such as the 
address of a website; and (3) 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 Sec.  
1005.7(b)(6)), including a telephone number to call to request a 
history. Section 1005.18(c)(5) requires that financial institutions 
disclose to consumers a summary total of the amount of all fees 
assessed against the consumer's prepaid account for both the prior 
month as well as the calendar year to date. This information must be 
disclosed on any periodic statement and any electronic or written 
history of account transactions provided or made available by the 
financial institution.
    The limited liability and error provisions of Regulation E now 
extend to all prepaid accounts, except those that have not successfully 
completed the financial institution's consumer identification and 
verification process. With regard to accounts where the consumer's 
identity is later verified, financial institutions are not required to 
resolve errors and limit liability for disputed transactions occurring 
prior to the verification. For accounts in programs where there is no 
verification process, financial institutions must either explain in 
their initial disclosures their error resolution process and 
limitations on consumers' liability for unauthorized transfers, or 
explain that there are no such protections, and that such financial 
institutions comply with the process (if any) that they disclose.\9\
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    \9\ 12 CFR 1005.18(e)(1) and (2).
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    Pursuant to Sec.  1005.18(h)(1), except as provided in Sec.  
1005.18(h)(2) and (3), the effective date for the Prepaid Accounts 
Rules is April 1, 2019. If, as a result of Sec.  1005.18(h)(1), a 
financial institution changes the terms and conditions of a prepaid 
account, such that a change-in-terms notice would have been required 
under Sec.  1005.8(a) or Sec.  1005.18(f)(2) for existing customers, 
the financial institution must notify consumers with accounts acquired 
before April 1, 2019, at least 21 days in advance of the change 
becoming effective, provided the financial institution has the 
consumer's contact information. If the financial institution obtains 
the consumer's contact information fewer than 30 days in advance of the 
change becoming effective or after it has become effective, the 
financial institution is permitted instead to provide notice of the 
change within 30 days of obtaining the consumer's contact information.
    If a financial institution has received an E-Sign consent from the 
consumer, the financial institution may notify the consumer 
electronically. Otherwise, if a financial institution mails or delivers 
written communications to the consumer within the applicable time 
period, that financial institution must send a notice in physical form. 
If the financial institution will not mail or deliver communications to 
the consumer within the applicable time period, then the financial 
institution may notify the consumer in electronic form without regard 
to the consumer

[[Page 59448]]

notice and consent requirements of section 101(c) of the E-Sign Act.
    Section 1005.18(h)(2)(ii) requires that financial institutions 
notify any consumer, who acquires a prepaid account after the effective 
date specified in packaging printed prior to the effective date, of any 
changes as a result of Sec.  1005.18(h)(1) taking effect that would 
have caused a change-in-terms notice to be required under Sec.  
1005.8(a) or Sec.  1005.18(f)(2) for existing customers within 30 days 
of acquiring the customer's contact information. In addition, financial 
institutions must mail or deliver updated initial disclosures pursuant 
to Sec. Sec.  1005.7 and 1005.18(f)(1) within 30 days of obtaining the 
consumer's contact information. Those financial institutions that are 
affected should not incur significant costs associated with notifying 
consumers and providing updated initial disclosures. Consumers who have 
consented to electronic communication may receive the notices and 
updated disclosures electronically, at a minimal cost to financial 
institutions. Those consumers who cannot be contacted electronically 
may receive the notices and updated initial disclosures together with 
another scheduled mailing within the 30-day time period. Any remaining 
consumers who are not scheduled to receive mailings may be notified 
without regard to the consumer notice and consent requirements of 
section 101(c) of the E-Sign Act.
    Section 1005.19(b) requires certain issuers to submit to the CFPB, 
on a rolling basis, short form disclosures, prepaid account agreements 
(including fee schedules) that are offered, amended, or withdrawn. 
Prepaid account issuers are permitted to delay submitting a change in 
the list of names of other relevant parties to a particular prepaid 
account agreement until the earlier of such time as the issuer is 
otherwise submitting an amended agreement or changes to other 
identifying information about the issuer and its submitted agreements 
to the CFPB, or May 1 of each year (for updates between the last 
submission and April 1 of that year). Short form and long form 
disclosures may be provided to the CFPB as separate addenda to the 
agreement, rather than integrated into the agreement or as a single 
addendum.

Regulation Z

    The CFPB's rules cover overdraft credit features offered in 
connection with prepaid accounts where the credit features are offered 
by the prepaid account issuer, its affiliates, or its business partners 
with certain exceptions. The CFPB is expanding the exception in 12 CFR 
1026.61(a)(4) that allows prepaid account issuers to provide certain 
incidental forms of credit structured as a negative balance on the 
asset feature of prepaid accounts without triggering Regulation Z and 
the other protections for hybrid prepaid-credit cards. Previously, the 
exception only applied where (1) the prepaid card could not access 
credit from a covered separate credit feature accessible by a hybrid 
prepaid-credit card; (2) the prepaid account issuer had a general 
policy and practice of declining transactions that will take the 
account negative; and (3) the prepaid account issuer customarily did 
not charge credit-related fees. Section 1026.61(a)(4), as amended, 
permits a prepaid account issuer to take advantage of the exception 
with respect to the negative balance even if a covered separate credit 
feature offered by a business partner is attached to the prepaid 
account, so long as the other requirements are met.
    Creditors offering these covered overdraft credit features in 
connection with a prepaid account are required to inform consumers of 
the costs and terms before consumers use the credit feature and inform 
consumers of certain subsequent changes to the terms of the credit 
feature. The initial required information includes the finance charge 
and other charges, the Annual Percentage Rate (APR), a description of 
how balances subject to a finance charge are calculated, and any 
collateral used to secure repayment. If the creditor changes certain 
terms initially disclosed, or increases the minimum periodic payment, a 
written change-in-terms notice generally must be provided to the 
consumer at least 45 days prior to the effective date of the change.
    Creditors are required to provide a written periodic statement of 
activity for each billing cycle. The statement must be provided for 
each account that has a balance of more than $1 or on which a finance 
charge is imposed, and the statement must include a description of 
activity on the account, the opening and closing balances, any finance 
charges imposed, and payment information.
    Creditors are required to notify consumers about their rights and 
responsibilities regarding billing errors and must provide either a 
complete statement of billing rights annually or a summary of those 
billing rights and responsibilities on each periodic statement. If a 
consumer alleges a billing error, the creditor must provide, within 30 
days of receipt, an acknowledgment that the creditor received the 
consumer's error notice. The creditor must report on the results of its 
investigation within 90 days. If a billing error did not occur, the 
creditor must provide an explanation as to why the creditor believed an 
error did not occur and provide documentary evidence to the consumer 
upon request. The creditor must also notify the consumer of the portion 
of the disputed amount and related finance or other charges that the 
consumer still owed and when payment of those amounts was due.
    Persons offering these covered overdraft credit features in 
connection with a prepaid account are required when advertising their 
products to include certain basic credit information if the 
advertisement refers to specified credit terms or costs. Persons 
offering these features in connection with a prepaid account are 
required to send copies of the overdraft credit feature agreement to 
the CFPB. Lastly, persons offering these features in connection with a 
prepaid account must provide additional disclosures with solicitations 
and applications. Such card issuers must disclose key terms of the 
account, such as the APR, information about variable rates, and fees 
such as annual fees, minimum finance charges, and transaction fees for 
purchases.
    Affected Public: Businesses or other for-profit entities.
    Burden Estimates:
    Regulation E:
    Estimated Number of Respondents: 1,106.
    Estimated Annual Burden: 6,605 hours.
    Regulation Z: The CFPB has indicated that the only respondents 
affected by these changes are those that they regulate. Therefore, the 
OCC will not be taking any burden for these changes.
    Frequency of Response: On occasion.
    Comments: On May 20, 2019, the OCC issued a notice for 60 days of 
comment concerning the collection, 84 FR 22931. No comments were 
received. Comments continue to be invited on:
    (a) Whether the collections of information are necessary for the 
proper performance of the functions of the OCC, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's estimates of the information 
collection burden;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation,

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maintenance, and purchase of services to provide information.

    Dated: October 25, 2019.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2019-23960 Filed 11-1-19; 8:45 am]
 BILLING CODE 4810-33-P