81 FR 70319 - Electronic Fund Transfers (Regulation E)
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 81, Issue 197 (October 12, 2016)
Federal Register Volume 81, Issue 197 (October 12, 2016)
| Page Range | 70319-70320 | |
| FR Document | 2016-24506 |
[Federal Register Volume 81, Number 197 (Wednesday, October 12, 2016)] [Rules and Regulations] [Pages 70319-70320] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-24506] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. ======================================================================== Federal Register / Vol. 81, No. 197 / Wednesday, October 12, 2016 / Rules and Regulations [[Page 70319]] BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1005 Electronic Fund Transfers (Regulation E) AGENCY: Bureau of Consumer Financial Protection. ACTION: Final rule; correcting amendments. ----------------------------------------------------------------------- SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is making certain clerical and non-substantive corrections to errors it has identified in Regulation E, which implements the Electronic Fund Transfer Act. DATES: This correction is effective on November 14, 2016. FOR FURTHER INFORMATION CONTACT: Jane Raso, Counsel; Kristine M. Andreassen and Eric Goldberg, Senior Counsels, Office of Regulations, at (202) 435-7700. SUPPLEMENTARY INFORMATION: I. Overview Regulation E, which implements the Electronic Fund Transfer Act,\1\ and the official interpretations to the regulation are codified in 12 CFR part 1005.\2\ Regulation E provides comprehensive consumer protections for consumers using electronic fund transfer and remittance transfer systems. Current Regulation E inadvertently contains several errors, as described below. The Bureau is publishing this final rule to correct these errors. No substantive change is intended by the corrections herein. --------------------------------------------------------------------------- \1\ 15 U.S.C. 1693 et seq. \2\ Subpart A of Regulation E was originally adopted as 12 CFR part 205 by the Board of Governors of the Federal Reserve System but, upon transfer of authority in the Dodd-Frank Act to implement Regulation E to the Bureau, was renumbered as 12 CFR part 1005. 76 FR 81020 (Dec. 27, 2011). --------------------------------------------------------------------------- Subpart A Section 1005.7 Initial Disclosures. Section 1005.7(b)(11) in 12 CFR part 1005 cross-references the definition of an ``automated teller machine operator'' as defined in ``Sec. 1005.16(a)(1).'' This is a clerical error, as there is no such paragraph in Sec. 1005.16. The definition of ``automated teller machine operator'' is set forth in Sec. 1005.16(a). Accordingly, this final rule corrects the erroneous cross reference in Sec. 1005.7(b)(11) by changing it from Sec. 1005.16(a)(1) to Sec. 1005.16(a). Subpart B Model form for error resolution and cancellation disclosures (short). Model Form A-37 in appendix A to part 1005 sets forth language about the rights of a remittance transfer sender regarding error resolution and cancellation. Pursuant to Sec. 1005.31(b)(2)(vi), it should contain language that informs a sender that the sender can contact the State agency that licenses or charters a remittance transfer provider and the Bureau for questions or complaints about the remittance transfer provider.\3\ However, the model form that was adopted only included this language in part. To correct this clerical error, Model Form A-37 is amended so that it now contains the disclosure required by Sec. 1005.31(b)(2)(vi) in its entirety. The Bureau notes that other model forms in subpart B that contain the statement required by Sec. 1005.31(b)(2)(vi) accurately reflect the statement. --------------------------------------------------------------------------- \3\ See 77 FR 6193, 6228 (Feb. 12, 2012) (explaining the contents of Model Form A-37). --------------------------------------------------------------------------- Official interpretation to Sec. 1005.33(a) and (g). Section 1005.33(a)(1)(iv) provides that a remittance transfer provider's failure to make funds available to a designated recipient by the date of availability disclosed to the sender is an error unless an exception applies. One such exception, set forth in Sec. 1005.33(a)(1)(iv)(D), is if the failure to make funds available is due to the sender having provided the remittance transfer provider with an incorrect account number for the designated recipient's account and the remittance transfer provider has met the conditions set forth in Sec. 1005.33(h). Comment 33(a)-9 explains the application of Sec. 1005.33(a)(1)(iv)(D). However, it erroneously cross-references Sec. 1005.30(h)(2) when it should have crossed-referenced Sec. 1005.33(a)(1)(iv)(D). This final rule corrects this error by removing the erroneous cross reference to Sec. 1005.30(h)(2) and replacing it with the correct cross reference to Sec. 1005.33(a)(1)(iv)(D). Additionally, comment 33(g)-1 contains a cross reference to the requirement set forth in the regulation that remittance transfer providers are subject to Sec. 1005.13's record retention requirements. However, instead of cross-referencing Sec. 1005.33(g)(2), where this requirement resides, the comment cross- references Sec. 1005.31(g)(2). This final rule corrects the erroneous cross reference in comment 33(g)-1 by changing it from Sec. 1005.31(g)(2) to Sec. 1005.33(g)(2). Official interpretation to Sec. 1005.36. Currently, there are two section headings in the commentary to Sec. 1005.36 (Transfers Scheduled before the Date of Transfer). The existence of two separate headings for the commentary to Sec. 1005.36 is a clerical error. Further, one of the headings is different from the heading of Sec. 1005.36 in the regulatory text. This final rule removes the erroneous heading so that the heading that remains in the commentary to Sec. 1005.36 has the same heading as the heading of Sec. 1005.36 in the regulatory text. Additionally, this final rule moves the commentary set forth under the erroneous heading and places it under the remaining heading. II. Basis for the Corrections The Bureau is publishing this technical correction as a final rule that will be effective 30 days after the date of publication in the Federal Register. The Bureau finds that there is good cause to publish this final rule without seeking public comment. See 5 U.S.C. 553(b)(3)(B). Public comment is unnecessary because the rule corrects inadvertent, clerical errors about which there is minimal, if any, basis for substantive disagreement. List of Subjects in 12 CFR Part 1005 Automated teller machines, Banks, Banking, Consumer protection, Credit unions, Electronic fund transfers, National banks, Remittances, Reporting and recordkeeping requirements, Savings associations. [[Page 70320]] Authority and Issuance Accordingly, 12 CFR part 1005 is corrected by making the following correcting amendments: PART 1005--ELECTRONIC FUND TRANSFERS (REGULATION E) 0 1. The authority citation for part 1005 is revised to read as follows: Authority: 12 U.S.C. 5512, 5581; 15 U.S.C. 1693b. Subpart B is also issued under 12 U.S.C. 5601 and 15 U.S.C. 1693o-1. Subpart A--General 0 2. Section 1005.7 is amended by revising paragraph (b)(11) to read as follows: Sec. 1005.7 Initial disclosures. * * * * * (b) * * * (11) ATM fees. A notice that a fee may be imposed by an automated teller machine operator as defined in Sec. 1005.16(a), when the consumer initiates an electronic fund transfer or makes a balance inquiry, and by any network used to complete the transaction. * * * * * 0 3. Appendix A to part 1005 is amended by revising Model Form A-37 to read as follows: Appendix A to Part 1005--Model Disclosure Clauses and Forms * * * * * A-37--Model Form for Error Resolution and Cancellation Disclosures (Short) (Sec. 1005.31(b)(2)(iv) and (b)(2)(vi)) You have a right to dispute errors in your transaction. If you think there is an error, contact us within 180 days at [insert telephone number] or [insert website]. You can also contact us for a written explanation of your rights. You can cancel for a full refund within 30 minutes of payment, unless the funds have been picked up or deposited. For questions or complaints about [insert name of remittance transfer provider], contact: State Regulatory Agency, 800-111-2222, www.stateregulatoryagency.gov Consumer Financial Protection Bureau, 855-411-2372, 855-729-2372 (TTY/TDD), www.consumerfinance.gov * * * * * 0 4. In Supplement I to Part 1005--Official Interpretations: 0 a. Under Section 1005.33--Procedures for Resolving Errors: 0 i. In subsection 33(a)--Definition of Error, paragraph 9 is revised. 0 ii. In subsection 33(g)--Error Resolution Standards and Recordkeeping Requirements, paragraph 1 is revised. 0 b. The heading Section 1005.36--Transfers Scheduled in Advance and paragraph 1 underneath said heading are removed. 0 c. Under Section 1005.36--Transfers Scheduled before the Date of Transfer, paragraph 1 is added. The revisions and additions read as follows: Supplement I to Part 1005--Official Interpretations * * * * * Section 1005.33--Procedures for Resolving Errors 33(a) Definition of Error * * * * * 9. Account number or recipient institution identifier. For purposes of the exception in Sec. 1005.33(a)(1)(iv)(D), the terms account number and recipient institution identifier refer to alphanumerical account or institution identifiers other than names or addresses, such as account numbers, routing numbers, Canadian transit numbers, International Bank Account Numbers (IBANs), Business Identifier Codes (BICs) and other similar account or institution identifiers used to route a transaction. In addition and for purposes of this exception, the term designated recipient's account in Sec. 1005.33(a)(1)(iv)(D) refers to an asset account, regardless of whether it is a consumer asset account, established for any purpose and held by a bank, savings association, credit union, or equivalent institution. A designated recipient's account does not, however, include a credit card, prepaid card, or a virtual account held by an Internet-based or mobile telephone company that is not a bank, savings association, credit union or equivalent institution. * * * * * 33(g) Error Resolution Standards and Recordkeeping Requirements 1. Record retention requirements. As noted in Sec. 1005.33(g)(2), remittance transfer providers are subject to the record retention requirements under Sec. 1005.13. Therefore, remittance transfer providers must retain documentation, including documentation related to error investigations, for a period of not less than two years from the date a notice of error was submitted to the provider or action was required to be taken by the provider. A remittance transfer provider need not maintain records of individual disclosures that it has provided to each sender; it need only retain evidence demonstrating that its procedures reasonably ensure the sender's receipt of required disclosures and documentation. * * * * * Section 1005.36--Transfers Scheduled Before the Date of Transfer 1. Applicability of subpart B. The requirements set forth in subpart B apply to remittance transfers subject to Sec. 1005.36, to the extent that Sec. 1005.36 does not modify those requirements. For example, the foreign language disclosure requirements in Sec. 1005.31(g) and related commentary continue to apply to disclosures provided in accordance with Sec. 1005.36(a)(2). * * * * * Dated: October 3, 2016. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2016-24506 Filed 10-11-16; 8:45 am] BILLING CODE 4810-AM-P
![70320 Federal Register / Vol. 81, No. 197 / Wednesday, October 12, 2016 / Rules and Regulations
Authority and Issuance ■ b. The heading Section 1005.36— § 1005.31(g) and related commentary
Transfers Scheduled in Advance and continue to apply to disclosures provided in
Accordingly, 12 CFR part 1005 is accordance with § 1005.36(a)(2).
corrected by making the following paragraph 1 underneath said heading
correcting amendments: are removed. * * * * *
■ c. Under Section 1005.36—Transfers Dated: October 3, 2016.
PART 1005—ELECTRONIC FUND Scheduled before the Date of Transfer, Richard Cordray,
TRANSFERS (REGULATION E) paragraph 1 is added.
Director, Bureau of Consumer Financial
The revisions and additions read as
Protection.
■ 1. The authority citation for part 1005 follows:
[FR Doc. 2016–24506 Filed 10–11–16; 8:45 am]
is revised to read as follows:
Supplement I to Part 1005—Official BILLING CODE 4810–AM–P
Authority: 12 U.S.C. 5512, 5581; 15 U.S.C. Interpretations
1693b. Subpart B is also issued under 12
U.S.C. 5601 and 15 U.S.C. 1693o–1. * * * * *
DEPARTMENT OF COMMERCE
Section 1005.33—Procedures for Resolving
Subpart A—General Errors
Bureau of Industry and Security
■ 2. Section 1005.7 is amended by 33(a) Definition of Error
revising paragraph (b)(11) to read as * * * * * 15 CFR Parts 734, 740, 742, 744, 772,
follows: 9. Account number or recipient institution and 774
identifier. For purposes of the exception in
§ 1005.7 Initial disclosures. § 1005.33(a)(1)(iv)(D), the terms account [Docket No. 140221170–6403–03]
* * * * * number and recipient institution identifier RIN 0694–AF75
(b) * * * refer to alphanumerical account or institution
(11) ATM fees. A notice that a fee may identifiers other than names or addresses, Revisions to the Export Administration
be imposed by an automated teller such as account numbers, routing numbers,
Canadian transit numbers, International Bank
Regulations (EAR): Control of Fire
machine operator as defined in Account Numbers (IBANs), Business Control, Laser, Imaging, and Guidance
§ 1005.16(a), when the consumer Identifier Codes (BICs) and other similar Equipment the President Determines
initiates an electronic fund transfer or account or institution identifiers used to No Longer Warrant Control Under the
makes a balance inquiry, and by any route a transaction. In addition and for United States Munitions List (USML)
network used to complete the purposes of this exception, the term
transaction. designated recipient’s account in AGENCY: Bureau of Industry and
§ 1005.33(a)(1)(iv)(D) refers to an asset Security, Department of Commerce.
* * * * * account, regardless of whether it is a ACTION: Final rule.
■ 3. Appendix A to part 1005 is consumer asset account, established for any
amended by revising Model Form A–37 purpose and held by a bank, savings SUMMARY: This final rule describes how
to read as follows: association, credit union, or equivalent articles the President determines no
institution. A designated recipient’s account
Appendix A to Part 1005—Model longer warrant control under Category
does not, however, include a credit card,
Disclosure Clauses and Forms prepaid card, or a virtual account held by an XII (Fire Control, Laser, Imaging, and
Internet-based or mobile telephone company Guidance Equipment) of the United
* * * * * that is not a bank, savings association, credit States Munitions List (USML) of the
A–37—Model Form for Error Resolution and union or equivalent institution. International Traffic in Arms
Cancellation Disclosures (Short) Regulations (ITAR) will be controlled
(§ 1005.31(b)(2)(iv) and (b)(2)(vi)) * * * * *
under the Commerce Control List (CCL)
You have a right to dispute errors in your 33(g) Error Resolution Standards and of the Export Administration
transaction. If you think there is an error, Recordkeeping Requirements
contact us within 180 days at [insert
Regulations (EAR) by amending Export
1. Record retention requirements. As noted Control Classification Number (ECCN)
telephone number] or [insert website]. You in § 1005.33(g)(2), remittance transfer
can also contact us for a written explanation 7A611 and creating new ‘‘600 series’’
providers are subject to the record retention ECCNs 7B611, 7D611, and 7E611. In
of your rights. requirements under § 1005.13. Therefore,
You can cancel for a full refund within 30 remittance transfer providers must retain
addition, for certain dual-use infrared
minutes of payment, unless the funds have documentation, including documentation detection items, this final rule expands
been picked up or deposited. related to error investigations, for a period of controls for certain software and
For questions or complaints about [insert not less than two years from the date a notice technology, eliminates the use of some
name of remittance transfer provider], of error was submitted to the provider or license exceptions, revises licensing
contact: action was required to be taken by the policy, and expands license
State Regulatory Agency, 800–111–2222, provider. A remittance transfer provider need requirements for certain transactions
www.stateregulatoryagency.gov not maintain records of individual
Consumer Financial Protection Bureau, 855–
involving military end users or foreign
disclosures that it has provided to each military commodities. This final rule
411–2372, 855–729–2372 (TTY/TDD), sender; it need only retain evidence
www.consumerfinance.gov demonstrating that its procedures reasonably
also harmonizes provisions within the
* * * * * ensure the sender’s receipt of required EAR by revising controls related to
disclosures and documentation. certain quartz rate sensors.
■ 4. In Supplement I to Part 1005—
* * * * * DATES: This rule is effective December
Official Interpretations:
■ a. Under Section 1005.33—Procedures 31, 2016.
Section 1005.36—Transfers Scheduled Before
mstockstill on DSK3G9T082PROD with RULES
for Resolving Errors: the Date of Transfer FOR FURTHER INFORMATION CONTACT: For
■ i. In subsection 33(a)—Definition of questions regarding the ECCNs included
1. Applicability of subpart B. The
Error, paragraph 9 is revised. requirements set forth in subpart B apply to
in this rule, contact Dennis Krepp,
■ ii. In subsection 33(g)—Error remittance transfers subject to § 1005.36, to Office of National Security and
Resolution Standards and the extent that § 1005.36 does not modify Technology Transfer Controls, Bureau of
Recordkeeping Requirements, paragraph those requirements. For example, the foreign Industry and Security, Telephone: 202–
1 is revised. language disclosure requirements in 482–1309, Email:
VerDate Sep<11>2014 16:05 Oct 11, 2016 Jkt 241001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\12OCR1.SGM 12OCR1](https://thefederalregister.org/doc/81_FR_70516/page/2.svg)
Document Created: 2016-10-12 00:55:35
Document Modified: 2016-10-12 00:55:35
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule; correcting amendments. | |
| Dates | This correction is effective on November 14, 2016. | |
| Contact | Jane Raso, Counsel; Kristine M. Andreassen and Eric Goldberg, Senior Counsels, Office of Regulations, at (202) 435-7700. | |
| FR Citation | 81 FR 70319 | |
| CFR Associated | Automated Teller Machines; Banks; Banking; Consumer Protection; Credit Unions; Electronic Fund Transfers; National Banks; Remittances; Reporting and Recordkeeping Requirements and Savings Associations |
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