Regulation
E - Electronic Funds Transfer
Appendix A to Part 205--Model Disclosure Clauses
and Forms
A-1--Model Clauses for
unsolicited issuance (Sec. 205.5(b)(2))
A-2--Model clauses for
initial disclosures (Sec. 205.7(b))
A-3--Model forms for error
resolution notice (Secs. 205.7(b)(10) and 205.8(b))
A-4--Model form for service-providing
institutions (Sec. 205.14(b)(1)(ii))
A-5--Model forms for government
agencies (Sec. 205.15(d)(1) and (2))
Appendix B to Part 205--Federal Enforcement Agencies
Appendix C to Part 205--Issuance of Staff Interpretations
Appendix A to Part 205--Model Disclosure
Clauses and Forms
A-1--Model Clauses For Unsolicited Issuance
(Sec. 205.5(b)(2))
(a) Accounts
using cards. You cannot use the enclosed card to transfer money
into or out of your account until we have validated it. If you
do not want to use the card, please (destroy it at once by cutting
it in half)
. [Financial institution may add validation instructions here.]
(b) Accounts
using codes. You cannot use the enclosed code to transfer money
into or out of your account until we have validated it. If you
do not want to use the code, please (destroy this notice at once).
[Financial institution
may add validation instructions here.]
A-2--Model Clauses For Initial Disclosures
(Sec. 205.7(b))
(a) Consumer
Liability (Sec. 205.7(b)(1)). (Tell us AT ONCE if you believe
your [card] [code] has been lost or stolen. Telephoning is the
best way of keeping your possible losses down. You could lose
all the money in your account (plus your maximum overdraft line
of credit). If you tell us within 2 business days, you can lose
no more than $50 if someone used your [card][code] without your
permission. (If you believe your [card] [code] has been lost or
stolen, and you tell us within 2 business days after you learn
of the loss or theft, you can lose no more than $50 if someone
used your [card] [code] without your permission.)
If you do NOT
tell us within 2 business days after you learn of the loss or
theft of your [card] [code], and we can prove we could have stopped
someone from using your [card] [code] without your permission
if you had told us, you could lose as much as $500.
Also, if your
statement shows transfers that you did not make, tell us at once.
If you do not tell us within 60 days after the statement was mailed
to you, you may not get back any money you lost after the 60 days
if we can prove that we could have stopped someone from taking
the money if you had told us in time.
If a good reason
(such as a long trip or a hospital stay) kept you from telling
us, we will extend the time periods.
(b) Contact in
event of unauthorized transfer (Sec. 205.7(b)(2)). If you believe
your [card] [code] has been lost or stolen or that someone has
transferred or may transfer money from your account without your
permission, call:
[Telephone number]
or write:
[Name of person or office to be notified]
[Address]
(c) Business
days (Sec. 205.7(b)(3)). For purposes of these disclosures, our
business days are (Monday through Friday) (Monday through Saturday)
(any day including Saturdays and Sundays). Holidays are (not)
included.
(d) Transfer
types and limitations (Sec. 205.7(b)(4))--(1) Account access.
You may use your [card][code] to:
(i) Withdraw
cash from your [checking] [or] [savings] account.
(ii) Make deposits
to your [checking] [or] [savings] account.
(iii) Transfer
funds between your checking and savings accounts whenever you
request.
(iv) Pay for
purchases at places that have agreed to accept the [card] [code].
(v) Pay bills
directly [by telephone] from your [checking] [or] [savings] account
in the amounts and on the days you request.
Some of these
services may not be available at all terminals.
&nbs p; (2) Limitations
on frequency of transfers.--(i) You may make only [insert number,
e.g., 3] cash withdrawals from our terminals each [insert time
period, e.g., week].
(ii) You can
use your telephone bill-payment service to pay [insert number]
bills each [insert time period] [telephone call].
(iii) You can
use our point-of-sale transfer service for [insert number] transactions
each [insert time period].
(iv) For security
reasons, there are limits on the number of transfers you can make
using our [terminals] [telephone bill-payment service] [point-of-sale
transfer service].
(3) Limitations
on dollar amounts of transfers--(i) You may withdraw up to [insert
dollar amount] from our terminals each [insert time period] time
you use the [card] [code].
(ii) You may
buy up to [insert dollar amount] worth of goods or services each
[insert time period] time you use the [card] [code] in our point-of-sale
transfer service.
(e) Fees (Sec.
205.7(b)(5))--(1) Per transfer charge. We will charge you [insert
dollar amount] for each transfer you make using our [automated
teller machines] [telephone bill-payment service] [point-of- sale
transfer service].
(2) Fixed charge.
We will charge you [insert dollar amount] each [insert time period]
for our [automated teller machine service] [telephone bill-payment
service] [point-of-sale transfer service].
(3) Average or
minimum balance charge. We will only charge you for using our
[automated teller machines] [telephone bill-payment service] [point-of-sale
transfer service] if the [average] [minimum] balance in your [checking
account] [savings account] [accounts] falls below [insert dollar
amount]. If it does, we will charge you [insert dollar amount]
each [transfer] [insert time period].
(f) Confidentiality
(Sec. 205.7(b)(9)). We will disclose information to third parties
about your account or the transfers you make:
(i) Where it
is necessary for completing transfers, or
(ii) In order
to verify the existence and condition of your account for a third
party, such as a credit bureau or merchant, or
(iii) In order
to comply with government agency or court orders, or
(iv) If you give
us your written permission.
(g) Documentation
(Sec. 205.7(b)(6))--(1) Terminal transfers. You can get a receipt
at the time you make any transfer to or from your account using
one of our [automated teller machines] [or] [point-of-sale terminals].
(2) Preauthorized
credits. If you have arranged to have direct deposits made to
your account at least once every 60 days from the same person
or company, (we will let you know if the deposit is [not] made.)
[the person or company making the deposit will tell you every
time they send us the money] [you can call us at (insert telephone
number) to find out whether or not the deposit has been made].
(3) Periodic
statements. You will get a [monthly] [quarterly] account statement
(unless there are no transfers in a particular month. In any case
you will get the statement at least quarterly).
(4) Passbook
account where the only possible electronic fund transfers are
preauthorized credits. If you bring your passbook to us, we will
record any electronic deposits that were made to your account
since the last time you brought in your passbook.
(h) Preauthorized
payments (Sec. 205.7(b) (6), (7) and (8); Sec. 205.10(d))--(1)
Right to stop payment and procedure for doing so. If you have
told us in advance to make regular payments out of your account,
you can stop any of these payments. Here's how:
Call us at [insert
telephone number], or write us at [insert address], in time for
us to receive your request 3 business days or more before the
payment is scheduled to be made. If you call, we may also require
you to put your request in writing and get it to us within 14
days after you call. (We will charge you [insert amount] for each
stop- payment order you give.)
(2) Notice of
varying amounts. If these regular payments may vary in amount,
[we] [the person you are going to pay] will tell you, 10 days
before each payment, when it will be made and how much it will
be. (You may choose instead to get this notice only when the payment
would differ by more than a certain amount from the previous payment,
or when the amount would fall outside certain limits that you
set.)
(3) Liability
for failure to stop payment of preauthorized transfer. If you
order us to stop one of these payments 3 business days or more
before the transfer is scheduled, and we do not do so, we will
be liable for your losses or damages.
(i) Financial
institution's liability (Sec. 205.7(b)(8)). If we do not complete
a transfer to or from your account on time or in the correct amount
according to our agreement with you, we will be liable for your
losses or damages. However, there are some exceptions. We will
not be liable, for instance:
(1) If, through
no fault of ours, you do not have enough money in your account
to make the transfer.
(2) If the transfer
would go over the credit limit on your overdraft line.
(3) If the automated
teller machine where you are making the transfer does not have
enough cash.
(4) If the [terminal]
[system] was not working properly and you knew about the breakdown
when you started the transfer.
(5) If circumstances
beyond our control (such as fire or flood) prevent the transfer,
despite reasonable precautions that we have taken.
(6) There may
be other exceptions stated in our agreement with you.
A-3--MODEL FORMS FOR ERROR RESOLUTION NOTICE
(Secs. 205.7(b)(10) and 205.8(b))
(a) Initial
and annual error resolution notice (Secs. 205.7(b)(10) and 205.8(b)).
In Case of Errors or Questions About Your Electronic Transfers,
Telephone us at [insert telephone number] or Write us at [insert
address] as soon as you can, if you think your statement or receipt
is wrong or if you need more information about a transfer listed
on the statement or receipt. We must hear from you no later than
60 days after we sent the FIRST statement on which the problem
or error appeared.
(1) Tell us your
name and account number (if any).
(2) Describe
the error or the transfer you are unsure about, and explain as
clearly as you can why you believe it is an error or why you need
more information.
(3) Tell us the
dollar amount of the suspected error.
If you tell us orally, we may require that you send us your complaint
or question in writing within 10 business days.
We will determine whether an error occurred within 10 business
days after we hear from you and will correct any error promptly.
If we need more time, however, we may take up to 45 days to investigate
your compliant or question. If we decide to do this, we will credit
your account within 10 business days for the amount you think
is in error, so that you will have the use of the money during
the time it takes us to complete our investigation. If we ask
you to put your compliant or question in writing and we do not
receive it within 10 business days, we may not credit your account.
We will tell you the results within three business days after
completing our investigation. If we decide that there was no error,
we will send you a written explanation.
You may ask for copies of the documents that we used in our investigation.
(b) Error resolution
notice on periodic statements Sec. 205.8(b). In Case of Errors
or Questions About Your Electronic Transfers, Telephone us at
[insert telephone number] or Write us at [insert address] as soon
as you can, if you think your statement or receipt is wrong or
if you need more information about a transfer on the statement
or receipt. We must hear from you no later than 60 days after
we sent you the FIRST statement on which the error or problem
appeared.
(1) Tell us your
name and account number (if any).
(2) Describe
the error or the transfer you are unsure about, and explain as
clearly as you can why you believe it is an error or why you need
more information.
(3) Tell us the
dollar amount of the suspected error.
We will investigate
your complaint and will correct any error promptly. If we take
more than 10 business days to do this, we will credit your account
for the amount you think is in error, so that you will have the
use of the money during the time it takes us to complete our investigation.
A-4--Model Form For Service-providing Institutions
(Sec. 205.14(b)(1)(ii))
ALL QUESTIONS
ABOUT TRANSACTIONS MADE WITH YOUR (NAME OF CARD) CARD MUST BE
DIRECTED TO US (NAME OF SERVICE PROVIDER), AND NOT TO THE BANK
OR OTHER FINANCIAL INSTITUTION WHERE YOU HAVE YOUR ACCOUNT. We
are responsible for the [name of service] service and for resolving
any errors in transactions made with your [name of card] card.
We will not send
you a periodic statement listing transactions that you make using
your [name of card] card. The transactions will appear only on
the statement issued by your bank or other financial institution.
SAVE THE RECEIPTS YOU ARE GIVEN WHEN YOU USE YOUR [NAME OF CARD]
CARD, AND CHECK THEM AGAINST THE ACCOUNT STATEMENT YOU RECEIVE
FROM YOUR BANK OR OTHER FINANCIAL INSTITUTION. If you have any
questions about one of these transactions, call or write us at
[telephone number and address] [the telephone number and address
indicated below].
IF YOUR [NAME
OF CARD] CARD IS LOST OR STOLEN, NOTIFY US AT ONCE by calling
or writing to us at [telephone number and address].
A-5--Model Forms For Government Agencies (Sec.
205.15(d)(1) and (2))
(1) Disclosure
by government agencies of information about obtaining account
balances and account histories Sec. 205.15(d)(1) (i) and (ii).
You may obtain information about the amount of benefits you have
remaining by calling [telephone number]. That information is also
available [on the receipt you get when you make a transfer with
your card at (an ATM) (a POS terminal)] [when you make a balance
inquiry at an ATM][when you make a balance inquiry at specified
locations].
You also have
the right to receive a written summary of transactions for the
60 days preceding your request by calling [telephone number].
[Optional: Or you may request the summary by contacting your caseworker.]
(2) Disclosure
of error resolution procedures for government agencies that do
not provide periodic statements (Sec. 205.15 (d)(1)(iii) and (d)(2)).
In Case of Errors or Questions About Your Electronic Transfers
Telephone us at [telephone number] or Write us at [address] as
soon as you can, if you think an error has occurred in your [EBT][agency's
name for program] account. We must hear from you no later than
60 days after you learn of the error. You will need to tell us:
- Your name and [case] [file] number.
- Why you believe there is an error, and the dollar amount
involved.
- Approximately when the error took place.
If you tell us
orally, we may require that you send us your complaint or question
in writing within 10 business days. We will generally complete our
investigation within 10 business days and correct any error promptly.
In some cases, an investigation may take longer, but you will have
the use of the funds in question after the 10 business days. If
we ask you to put your complaint or question in writing and we do
not receive it within 10 business days, we may not credit your account
during the investigation.
For errors involving
transactions at point-of-sale terminals in food stores, the periods
referred to above are 20 business days instead of 10 business days.
If we decide that
there was no error, we will send you a written explanation within
three business days after we finish our investigation. You may ask
for copies of the documents that we used in our investigation.
If you need more
information about our error resolution procedures, call us at [telephone
number][the telephone number shown above].
Appendix B to Part 205--Federal Enforcement
Agencies
The following
list indicates which Federal agency enforces Regulation E (12
CFR part 205) for particular classes of institutions. Any questions
concerning compliance by a particular institution should be directed
to the appropriate enforcing agency. Terms that are not defined
in the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) shall
have the meaning given to them in the International Banking Act
of 1978 (12 U.S.C. 3101).
National banks, and Federal branches and Federal
agencies of foreign banks
District office
of the Office of the Comptroller of the Currency where the institution
is located.
State member banks, 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 25(a) of the Federal Reserve Act
Federal Reserve
Bank serving the District in which the institution is located.
Nonmember insured
banks and insured state branches of foreign banks
Federal Deposit
Insurance Corporation regional director for the region in which
the institution is located.
Savings institutions
insured under the Savings Association Insurance Fund of the FDIC
and federally-chartered savings banks insured under the Bank Insurance
Fund of the FDIC (but not including state-chartered savings banks
insured under the Bank Insurance Fund)
Office of Thrift
Supervision Regional Director for the region in which the institution
is located.
Federal Credit Unions
Division of
Consumer Affairs, National Credit Union Administration, 1775 Duke
Street, Alexandria, Virginia 22314-3428
Air Carriers
Assistant General
Counsel for Aviation Enforcement and Proceedings, Department of
Transportation, 400 Seventh Street, S.W., Washington, D.C. 20590.
Brokers and Dealers
Division
of Market Regulation, Securities and Exchange Commission, Washington,
D.C. 20549.
Retailers, Consumer
Finance Companies, Certain Other Financial Institutions, and all
others not covered above
Federal Trade
Commission, Electronic Fund Transfers, Washington, D.C. 20580.
Appendix C to Part 205--Issuance of Staff
Interpretations
Official Staff Interpretations
Pursuant to
section 915(d) of the act, the Board has designated the director
and other officials of the Division of Consumer and Community
Affairs as officials ``duly authorized'' to issue, at their discretion,
official staff interpretations of this part. Except in unusual
circumstances, such interpretations will not be issued separately
but will be incorporated in an official commentary to this part,
which will be amended periodically.
Requests for Issuance of Official Staff Interpretations
A request for
an official staff interpretation shall be in writing and addressed
to the Director, Division of Consumer and Community Affairs, Board
of Governors of the Federal Reserve System, Washington, D.C. 20551.
The request shall contain a complete statement of all relevant
facts concerning the issue, including copies of all pertinent
documents.
Scope of Interpretations
No staff interpretations
will be issued approving financial institutions' forms or statements.
This restriction does not apply to forms or statements whose use
is required or sanctioned by a government agency.
Regulation E - Electronic
Fund Transfer - Full Text
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