Revisions to the Official Staff Commentary to
Regulation E (Electronic Fund Transfer Act)
The Board of Governors of the Federal Reserve System (FRB) has adopted the attached final rule revising the Official Staff Commentary to Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The final rule took effect on March 15, 2001; however, the mandatory compliance date is January 1, 2002.
The final rule provides guidance in three significant areas:
electronic check conversion transactions where a consumer authorizes the use of a check to capture information to initiate an electronic debit from his or her account;
computer-initiated transfers for bill-payment services; and
electronic authorizations of recurring debits from a consumer's account.
The FRB also provides technical clarifications on exceptions to the periodic statement requirements, the definition of an electronic terminal, the timing of initial disclosures, and the compulsory use prohibitions.
The final rule does not address aggregation services made available to consumers through an Internet Web site; the FRB indicates that issue will be considered in a future proposal.
For more information, please contact Louise Kotoshirodo Kramer, Review Examiner in the FDIC's Division of Compliance and Consumer Affairs, at (202) 942-3599.
Distribution: FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).