Electronic Fund Transfers, 1473-1483 [E5-8317]

Agencies

• FEDERAL RESERVE SYSTEM

[Federal Register Volume 71, Number 6 (Tuesday, January 10, 2006)]
[Rules and Regulations]
[Pages 1473-1483]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-8317]



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Federal Register / Vol. 71, No. 6 / Tuesday, January 10, 2006 / Rules 
and Regulations

[[Page 1473]]



FEDERAL RESERVE SYSTEM

12 CFR Part 205

[Regulation E; Docket No. R-1247]


Electronic Fund Transfers

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Interim final rule; request for public comment.

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SUMMARY: The Board is amending Regulation E, which implements the 
Electronic Fund Transfer Act, and the official staff commentary to the 
regulation. The commentary interprets the requirements of Regulation E 
to facilitate compliance primarily by financial institutions that offer 
electronic fund transfer services to consumers.
    The interim final rule provides that payroll card accounts 
established directly or indirectly by an employer on behalf of a 
consumer to which electronic fund transfers of the consumer's salary, 
wages, or other employee compensation are made on a recurring basis are 
accounts covered by Regulation E.

DATES: This interim final rule is effective July 1, 2007. Comments must 
be received on or before March 13, 2006.

ADDRESSES: You may submit comments, identified by Docket No. R-1247, by 
any of the following methods:
     Agency Web Site: https://www.federalreserve.gov. Follow the 
instructions for submitting comments at https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: regs.comments@federalreserve.gov. Include the 
docket number in the subject line of the message.
     FAX: (202) 452-3819 or (202) 452-3102.
     Mail: Jennifer J. Johnson, Secretary, Board of Governors 
of the Federal Reserve System, 20th Street and Constitution Avenue, 
NW., Washington, DC 20551.
    All public comments are available from the Board's Web site at 
https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, unless modified for technical reasons. Accordingly, your 
comments will not be edited to remove any identifying or contact 
information. Public comments may also be viewed electronically or in 
paper in Room MP-500 of the Board's Martin Building (20th and C 
Streets, NW.) between 9 a.m. and 5 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: Ky Tran-Trong, Senior Attorney, or 
Daniel G. Lonergan or David A. Stein, Counsels, Division of Consumer 
and Community Affairs, Board of Governors of the Federal Reserve 
System, Washington, DC 20551, at (202) 452-2412 or (202) 452-3667. For 
users of Telecommunications Device for the Deaf (TDD) only, contact 
(202) 263-4869.

SUPPLEMENTARY INFORMATION:

I. Statutory Background

    The Electronic Fund Transfer Act (EFTA or Act) (15 U.S.C. 1693 et 
seq.), enacted in 1978, provides a basic framework establishing the 
rights, liabilities, and responsibilities of participants in electronic 
fund transfer (EFT) systems. The EFTA is implemented by the Board's 
Regulation E (12 CFR part 205). Examples of types of transfers covered 
by the Act and regulation include transfers initiated through an 
automated teller machine (ATM), point-of-sale (POS) terminal, automated 
clearinghouse (ACH), telephone bill-payment plan, or remote banking 
service. The Act and regulation require disclosure of terms and 
conditions of an EFT service; documentation of EFTs by means of 
terminal receipts and periodic account activity statements; limitations 
on consumer liability for unauthorized transfers; procedures for error 
resolution; and certain rights related to preauthorized EFTs. Further, 
the Act and regulation also prescribe restrictions on the unsolicited 
issuance of ATM cards and other access devices.
    The official staff commentary (12 CFR part 205 (Supp. I)) is 
designed to facilitate compliance and provide protection from liability 
under sections 915 and 916 of the EFTA for financial institutions and 
persons subject to the Act. 15 U.S.C. 1693m(d)(1). The commentary is 
updated periodically to address significant questions that arise.

II. Background and Overview of Comments Received

    Payroll cards have become increasingly popular with some employers, 
financial institutions, and payroll service providers as a means of 
providing a consumer's wages or other recurring compensation payments--
assets that the consumer is able to access and spend via an access 
device that provides functionality comparable to that of a debit card. 
Typically, an employer, in conjunction with a bank, will provide the 
employee with a plastic card with a magnetic stripe; this card accesses 
an account (or subaccount) assigned to the individual employee. Each 
payday, the employer credits this account for the amount of the 
employee's compensation instead of providing the employee with a paper 
check or making a direct deposit of salary to the employee's checking 
account. The employee-consumer can use the payroll card to withdraw his 
or her funds at an ATM, and to make purchases at POS (and possibly get 
cash back). Some payroll cards may offer features such as convenience 
checks and electronic bill payment. Payroll cards are often marketed to 
employers as an effective means of providing wages to employees who 
lack a traditional banking relationship. For ``unbanked'' consumers, 
payroll card products can serve as substitutes for traditional 
transaction accounts at a financial institution.
    On September 17, 2004, the Board published a notice of proposed 
rulemaking in the Federal Register (69 FR 55,996) (September 2004 
proposal) to provide, among other things, that the term ``account'' 
under Regulation E includes payroll card accounts established by an 
employer for the purpose of providing an employee's compensation on a 
recurring basis. A payroll card account would be subject to the 
regulation whether it is operated or managed by the employer, a third-
party payroll processor, or a depository institution.
    The Board received approximately 120 comment letters on the 
September

[[Page 1474]]

2004 proposal, nearly 50 of which specifically commented on the 
proposed revisions addressing payroll card accounts. Comments were 
received from a variety of industry commenters, including banks, 
thrifts, credit unions, and industry trade associations. Comments were 
also received from consumer groups and individual consumers.
    Industry commenters generally agreed that it was appropriate to 
cover payroll card accounts under Regulation E, but urged the Board not 
to cover other stored-value products so as not to discourage the 
continued evolution of such products. Most industry commenters also 
asserted that not all provisions of Regulation E should apply to 
payroll card accounts. In particular, industry commenters stated that 
institutions should not be required to provide paper periodic 
statements. These commenters cited various reasons, including that 
other means of accessing balance and transaction information, such as 
via a telephone and the Internet, provided more useful and timely 
information to consumers at less cost to financial institutions. 
Industry commenters also stated that payroll card users are often 
unbanked and chiefly interested in obtaining balance information and, 
further, that this population was typically transient, making paper 
statements difficult to deliver. Consumer groups urged the Board to 
expand the scope of the proposal to cover any stored-value product that 
is marketed or used as an account substitute, or that is used to 
receive payments of significant household funds, such as workers' 
compensation or unemployment benefits.
    A final rule addressing the other proposed provisions addressing 
electronic check conversion transactions and other matters in the 
September 2004 proposal is published elsewhere in this Federal 
Register.

III. Summary of the Interim Final Rule

    The Board has modified the proposed rule in light of the comments 
received. In order to give interested parties an opportunity to comment 
on the modifications made, and, in particular, on the alternative means 
to provide periodic statement information, the Board is publishing this 
interim final rule for comment.
    Under the interim final rule, payroll card accounts are defined as 
``accounts'' for purposes of coverage under Regulation E, and include 
those accounts directly or indirectly established by an employer to 
which EFTs of the consumer's wages or other compensation are made on a 
recurring basis. The interim final rule incorporates a new Sec.  205.18 
to grant financial institutions flexibility in how to provide certain 
account transaction information to payroll card users. Under the new 
section, financial institutions would be granted an alternative to 
regularly providing paper periodic statements. In particular, instead 
of providing paper periodic statements under Sec.  205.9, an 
institution would: (1) Make available to the consumer balance 
information through a readily available telephone line; (2) make 
available to the consumer an electronic history (such as via the 
Internet) of the consumer's account transactions covering at least a 
period of 60 days prior to the consumer's oral or written request; and 
(3) provide promptly upon the consumer's request, a written history of 
the consumer's account transactions covering at least a period of 60 
days prior to the request. The history of account transactions provided 
electronically or upon request would set forth the same type of 
information required to be provided on paper periodic statements 
otherwise required under Regulation E, including information about any 
fees for EFTs imposed during the period in connection with the payroll 
card account.
    The comments received on the proposal, and the Board's response to 
the comments, are discussed in the following section-by-section 
analysis. As discussed below, the Board is adopting these rules as 
interim final rules so that interested parties may comment on the new 
requirements. The effective date of the interim final rule is July 1, 
2007.

IV. Section-by-Section Analysis

Section 205.2 Definitions 2(b) Account

    The EFTA and Regulation E apply to any EFT that authorizes a 
financial institution to debit or credit a consumer's asset account. 
Under the proposed rule, the term ``account'' in Sec.  205.2(b)(3) 
would be revised to include a ``payroll card account'' directly or 
indirectly established by an employer on behalf of a consumer to which 
EFTs of the consumer's wages, salary, or other employee compensation 
are made on a recurring basis. A payroll card account would be subject 
to the regulation whether the account is operated or managed by the 
employer, a third-party payroll processor, or a depository institution. 
The interim final rule redesignates current Sec.  205.2(b)(2) as Sec.  
205.2(b)(3) and adopts the definition of payroll card accounts as 
proposed under Sec.  205.2(b)(2).
    Overall, the majority of commenters supported coverage of payroll 
card accounts under Regulation E. Many industry commenters agreed that 
Regulation E coverage was appropriate for payroll cards, but urged the 
Board to narrowly define payroll cards so as to include only those 
types of products that are truly intended to serve as ``accounts.'' In 
this regard, some industry commenters were concerned that an overly 
broad definition of payroll cards might have the effect of stifling the 
development of emerging stored-value card products.
    A few industry commenters objected to the characterization of 
payroll cards as ``accounts'' or ``account substitutes,'' asserting 
that funds are added to payroll card accounts in a more limited manner 
than they are to traditional deposit accounts. (With a payroll card, 
funds can often be added to the account only by the employer and not 
the employee.) These industry commenters believed that payroll cards 
were more appropriately characterized as ``payment substitutes'' 
because they provide a means for replacing paper checks.
    Consumers and consumer groups supported the proposal's broad 
coverage of financial institutions, employers, and providers, and 
stated that all Regulation E protections, including the provision of 
periodic statements, should apply to payroll card accounts. These 
commenters also recommended broadening the scope of the rule to 
encompass all cards ``marketed as substitutes'' for a bank account, as 
well as cards that are used to receive payments of significant 
household funds, such as workers' compensation, unemployment benefits, 
social security payments, or tax refunds.
    By express definition, the coverage of EFT services under the EFTA 
and Regulation E depends upon whether a transaction involves an EFT to 
or from a consumer's account. Section 903(2) of the EFTA defines an 
``account'' as a ``demand deposit, savings deposit, or other asset 
account * * * as described in regulations of the Board, established 
primarily for personal, family, or household purposes.'' The definition 
is broad and is not limited to traditional checking and savings 
accounts.\1\ Under

[[Page 1475]]

section 904(d) of the EFTA, ``[i]f EFT services are made available to 
consumers by a person other than a financial institution holding a 
consumer's account, the Board shall by regulation assure that the 
disclosures, protections, responsibilities, and remedies created by 
[the EFTA] are made applicable to such persons and services.'' Congress 
has clearly expressed its expectation that the Board's regulation would 
keep pace with new services and assure that the Act's basic protections 
continue to apply to such services.\2\
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    \1\ The EFTA's legislative history evidences a clear 
Congressional intent to define the term ``account'' broadly to 
ensure that ``all persons who offer equivalent EFT services 
involving any type of asset account are subject to the same 
standards and consumers owning such accounts are assured of uniform 
protection.'' S. Rep. No. 915, 95th Cong., 2d Sess. 9 (1978).
    \2\ See id.; S. Rep. No. 1273, 95th Cong., 2d Sess. 9-10, 25-26 
(1978).
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    In light of the characteristics of payroll card accounts, the Board 
believes it is appropriate to exercise its authority under sections 
903(2) and 904(d) of the EFTA and determine that payroll card accounts 
are appropriately classified as ``accounts'' for purposes of Regulation 
E. Payroll card accounts are assigned to an identifiable consumer and 
represent a recurring stream of payments that is likely the primary 
source of the consumer's income. They are replenished on a recurring 
basis and designed for ongoing use at multiple locations and for 
multiple purposes. Payroll card accounts utilize the same kinds of 
access devices, electronic terminals, and networks as do other EFT 
services historically covered by the EFTA.
    The interim final rule adopts a new Sec.  205.2(b)(2) to provide 
that the term ``account'' includes a ``payroll card account'' directly 
or indirectly established by an employer on behalf of a consumer to 
which EFTs of the consumer's wages, salary, or other employee 
compensation are made on a recurring basis. (Current Sec.  205.2(b)(2) 
is re-designated as Sec.  205.2(b)(3).) Coverage under Regulation E 
applies whether the account is operated or managed by the employer, a 
third-party payroll processor, or a depository institution. The 
definition is unchanged from the proposal.
    The definition generally includes a payroll card account that 
represents the means by which an employer regularly pays the employee's 
salary or other form of compensation, and would include, for example, 
card accounts for seasonal workers or employees that are paid on a 
commission basis. Moreover, the fact that an employee may only remain 
in the employer's hire for a short period of time, including just one 
pay cycle, does not negate coverage, so long as the employer intended 
to make recurring payments to the payroll card account. However, if the 
employer only pays the employee by adding funds to an ``account'' 
accessible by a card in isolated or limited instances--for example, in 
final-paycheck situations, or only in emergency situations when the 
customary, non-payroll-card method of payment does not work--but 
otherwise intends to regularly pay the employee by another method, such 
as by paper check or direct-deposit, such a card ``account'' would not 
fall within the definition of a payroll card account.
    Payroll card accounts also are covered under the interim final rule 
whether the funds are held in individual employee accounts or in a 
pooled account with some form of ``subaccounting'' maintained by a 
depository institution (or by a third party) that enables a 
determination of the amounts of money owed to particular employees. 
Although some commenters suggested that the manner in which such funds 
are held should determine whether a particular payroll card account 
falls within the rule, the Board has determined to adopt the definition 
as proposed, because it will assure broad and uniform application and 
compliance, and minimize potential circumvention of the rule. The Board 
further believes there is no substantive difference between a 
subaccount and an individual account for purposes of determining 
whether Regulation E coverage is appropriate.
    As stated in the proposal, the Board is limiting the scope of this 
interim final rule to payroll card products. Thus, for example, 
``gift'' cards issued by a merchant that can be used to purchase items 
in the merchant's store would not be covered by the interim final rule. 
In addition, comment 2(b)-2 clarifies that cards to which only one-time 
transfers of salary-related payments are made (e.g., to pay an annual 
bonus), or cards exclusively used to disburse non-salary-related 
payments, such as petty cash or travel per diem cards, are not covered. 
To the extent one-time bonus payments, payments to reimburse travel 
expenses, or any other payment of funds (e.g., if a consumer is 
permitted to add his or her funds) are transferred to or from a payroll 
card account, however, such transfers would be considered EFTs covered 
by the regulation. Current comment 2(b)-2 addressing examples of 
accounts not covered by Regulation E is redesignated as comment 2(b)-3.
    Some consumer group commenters urged the Board to apply Regulation 
E to all card products to which an individual might transfer by direct 
deposit some portion of his or her wages, even if such cards are not 
``payroll card accounts'' directly or indirectly established by an 
employer. These commenters asserted that such general spending cards 
are marketed as account substitutes and therefore should be covered 
under the regulation. Consumer groups also urged the Board to cover 
stored-value products that may be used by some consumers to hold 
important household funds or assets, such as workers' compensation, 
unemployment benefits or tax refunds.
    The Board has not expanded the interim final rule in the manners 
suggested. Payroll cards are established directly or indirectly by an 
employer for the express purpose of receiving on a long-term basis, 
recurring payments of a consumer's wages, salary or other compensation. 
Accordingly, there is a greater likelihood that the account will serve 
as a consumer's principal transaction account, and hold significant 
funds for an extended period of time. In contrast, general spending 
cards are established by the individual consumer, and while the 
consumer might choose to deposit some portion of salary (as well as 
other funds) onto a general spending card, the consumer also may use 
these products like gift cards or other stored-value or prepaid cards. 
Under the latter situation, consumers would derive little benefit from 
receiving full Regulation E protections for a card that may only be 
used on a limited, short-term basis and which may hold minimal funds, 
while the costs of providing Regulation E initial disclosures, periodic 
statements and error resolution rights would be quite significant for 
the issuer. In addition, coverage of such products could impede the 
development of other card products generally. Similarly, although some 
card products may be used to transfer significant or important sums to 
a consumer, these products are generally designed to make one-time or a 
limited number of payments to consumers, and are not intended to be 
used on a long-term basis. Given these above considerations, the Board 
has determined to limit the scope of the interim final rule to payroll 
card accounts. The Board will monitor the development of other card 
products and may reconsider Regulation E coverage as these products 
continue to develop.

Section 205.18 Requirements for Financial Institutions Offering Payroll 
Card Accounts

    In the proposal, the Board proposed that all of the Regulation E 
provisions, including initial disclosures, periodic statements, error 
resolution procedures, and other consumer protections, would apply to 
payroll card accounts. Industry commenters, however, disagreed with the 
Board's suggestion that all provisions of Regulation E coverage

[[Page 1476]]

should apply to payroll card accounts. In particular, most industry 
commenters stated that the requirement to deliver periodic statements 
under Sec.  205.9 should not apply to payroll card accounts. Instead, 
industry commenters suggested that entities offering payroll cards 
should be subject to rules similar to those contained in Sec.  205.15 
of Regulation E for accounts established for the electronic transfer of 
government benefits (electronic benefit transfer, or EBT, accounts), 
which provide for alternative means of providing account information.
    Industry commenters commonly cited one or more of the following 
justifications for not requiring paper periodic statements: (1) Some 
payroll card holders are transient, complicating the mailing of 
statements; (2) payroll card holders are sufficiently informed about 
their accounts by ``real-time'' balance and recent-transaction 
information available by other means, such as on-line, through 
telephone voice-response units, or ATMs; (3) payroll cards seek to 
eliminate employer paper payroll costs, and a mailed statement could 
reduce expected savings to employers; (4) the cost of mailing 
statements could increase payroll card fees, potentially lowering both 
employer as well as employee interest in using the cards; and (5) 
imposing a costly regulatory requirement could inhibit the development 
of a card product that is safer for employees than carrying cash, 
potentially cheaper than using a check-casher, and is a potential means 
for transitioning the unbanked to a full banking relationship.
    In contrast, consumer group commenters asserted that payroll card 
accounts should be treated the same as other consumer accounts for all 
purposes under the EFTA, including the requirement to provide paper 
periodic statements. These commenters noted that periodic statements 
assist consumers in tracking their account balances and transactions 
and, importantly, allow consumers to discover unauthorized transfers or 
other errors involving their accounts.
    The periodic statement requirement is an important aspect of the 
EFTA's protections. When it addressed EBT programs in 1994, the Board 
recognized that periodic statements are a central component of 
Regulation E's disclosure scheme. However, in the EBT final rule, the 
Board exercised its exception authority under section 904(c) of the 
EFTA to provide relief from the requirement to provide a periodic 
statement if: (1) Account balance information is made available to 
benefit recipients via telephone and electronic terminals; and (2) a 
written account history is provided upon request. The Board determined 
that granting EBT providers relief from the periodic statement 
requirements was appropriate in light of the availability of other 
means of obtaining account information to benefit recipients, the 
limited types of transactions involved for EBT accounts, and the 
expense of routinely mailing monthly statements to all recipients given 
the low margins associated with administering EBT programs. See 59 FR 
10,678, 10,681 (March 7, 1994).
    As part of this rulemaking, the Board has conducted focus group 
testing of identified payroll card holders to obtain information 
regarding how actual payroll card users manage and use their accounts 
in order to better understand their account information needs. 
Participants in the Board-sponsored focus groups included both 
consumers who received paper periodic statements for their payroll card 
accounts, and those who did not.
    Generally, focus group participants found their cards convenient to 
use, and most used their cards not only to withdraw cash, but also to 
make purchases on a regular basis. A significant number of participants 
believed that receiving pay on payroll cards is more convenient than 
receiving a paper paycheck each pay period, although a few participants 
expressed a preference for receiving tangible, paper evidence of pay 
each pay period. Many participants, particularly those that do not have 
a checking account, have all of their pay deposited onto their payroll 
card and pay all of their expenses from the account. Other participants 
used the payroll card as a small savings account, while paying all of 
their expenses out of another bank account.
    The majority of focus group participants regularly checked their 
balances over the telephone, or checked balance and transaction 
information on-line, some multiple times per week. Although some 
limited transaction information was available through the telephone, 
most focus group participants chose not to access their transaction 
information by phone. Participants indicated that more transaction 
information was available on-line than was available via the telephone, 
which made verification of transactions easier on-line.
    For those participants who received paper periodic statements, most 
stated that they generally filed their statements as a record of 
account activity, but otherwise rarely used them to track transactions 
or look for errors. The lack of periodic statement use was generally 
attributed to the fact that the participants monitored their payroll 
account information more frequently during the month via the telephone 
or on-line, and thus, participants felt that they did not need to 
review their statement when it arrived. While a few participants wanted 
to receive or to continue to receive paper statements, others indicated 
a clear preference for using alternative means of obtaining account 
information, in particular on-line and by phone, to monitor account 
activity and avoid errors.
    The Board notes that nearly all of the focus group participants had 
some means of on-line access; consequently the participants may not be 
representative of the current or future payroll card holder population 
overall with respect to their ability to access account information on-
line. Nevertheless, the Board believes that the focus groups provided 
helpful insight regarding how consumers use and manage their payroll 
card accounts.
    After a review of the comments and data from the focus groups, and 
further analysis, the Board has concluded that it is appropriate to 
provide flexibility in connection with the periodic statement 
requirement for payroll card accounts. As was the case when the Board 
considered rules governing EBT products in 1994, the Board is persuaded 
at this time that the alternative methods of providing account 
transaction information currently made available by many payroll card 
providers can give payroll card users a means of tracking their account 
balances and transactions that is comparable to that provided by paper 
periodic statements. Moreover, information obtained via the telephone 
or on-line is typically updated on a daily basis, in contrast to 
periodic statements which only provide information as of the end of 
each statement cycle. Thus, consumers using telephone and on-line 
methods often have access to more timely information through these 
methods. Access to more timely information may be particularly critical 
to consumers who may need to track their account balances on a 
transaction-by-transaction basis to ensure they do not overdraw their 
accounts.
    The Board has also weighed the potential burden of requiring all 
financial institutions to provide paper periodic statements against the 
benefit consumers who prefer these statements would obtain from such 
statements. Since financial institutions are not currently required to 
provide paper statements for payroll card accounts, such a requirement 
would impose

[[Page 1477]]

considerable one-time implementation costs on financial institutions 
that currently provide payroll card accounts, and possibly discourage 
other financial institutions from offering payroll card accounts. 
Accordingly, after also taking into consideration the alternative 
methods available to consumers for obtaining payroll card account 
information, the Board concludes that granting relief from the periodic 
statement requirement for payroll card accounts is appropriate.
    Section 205.18 of the interim final rule adopts an approach for 
providing account information for payroll card accounts similar to that 
used for EBT products under Sec.  205.15, with certain modifications to 
address issues relating to periodic statements and error resolution 
procedures and notices. This new section allows financial institutions 
to use alternative means to provide account information where an 
institution chooses not to provide periodic statements under Sec.  
205.9(b). Section 205.18 also addresses the requirements governing 
periodic statements, initial disclosures, error resolution and the 
annual error resolution notice, the issuance of access devices, and 
limitations on liability. Except as modified by this section, all other 
provisions of Regulation E apply to payroll card accounts.

18(a) Coverage

    Section 205.18(a) describes the entities that must comply with 
Regulation E with respect to the provision of payroll card accounts. A 
person is a financial institution subject to the regulation if it 
directly or indirectly holds a payroll card account or issues an access 
device to a consumer for use in initiating an EFT from a payroll card 
account. The scope of coverage set forth in this paragraph differs from 
the scope under the definition of ``financial institution'' under Sec.  
205.2(i) because it does not require that a person issuing an access 
device for a payroll card account to also agree with a consumer to 
provide EFT services in order to be covered. As stated in the 
supplementary information in the proposal, the Board intends to cover 
employers to the extent they are involved in the transfer of funds to 
the payroll card account or in the issuance of the card. See 69 FR at 
55,999. Thus, the Board believes that this clarification is necessary 
to extend coverage under the interim final rule to employers that issue 
payroll cards to their employees, but who may not otherwise provide EFT 
services to their employees using those cards. However, the mere fact 
that a consumer has elected to make direct deposits of salary to a 
checking or savings account that the consumer has separately 
established would not make an employer a financial institution for 
purposes of this rule.
    Section 205.18(a) further states that, except as provided in Sec.  
205.18, the person must comply with all applicable requirements of the 
act and regulation with respect to payroll card accounts. Comment 
18(a)-1 illustrates this provision in the context of issuing access 
devices under Sec.  205.5, and states that a financial institution may 
issue an access device for a payroll card account consumer only in 
response to an oral or written request for the device or as a renewal 
or substitute of an accepted access device. The comment further 
clarifies that a consumer is deemed to request an access device when 
the consumer chooses to receive his or her salary through a payroll 
card account. Although some commenters stated that a consumer should be 
deemed to apply for a payroll card account when the consumer submits an 
application for employment, such a rule could be inconsistent with the 
compulsory use prohibition in Sec.  205.10(e)(2).
    To the extent more than one party is a ``financial institution'' 
under the rule with respect to a particular payroll card account, such 
parties may contract among themselves pursuant to the jointly provided 
services provision under Sec.  205.4(e) to ensure compliance with the 
interim final rule. For example, if an employer, by agreement, issues a 
payroll card to a consumer and opens an account at a bank into which 
the employer deposits the consumer's wages and from which the consumer 
can access funds by using the card, then both the employer and the bank 
would qualify as a financial institution with respect to that 
consumer's payroll card account. Similarly, if an employer contracts 
with a third party processor or service provider to issue the access 
device for the payroll card account, the third party processor or 
service provider would also be a financial institution with respect to 
that payroll card account. Disclosure obligations satisfied by one 
party, such as a service provider, for a payroll card account would 
satisfy any disclosure obligations for any other financial institution 
with respect to that payroll card account. Although several commenters 
expressed concern that more than one entity may qualify as a 
``financial institution,'' no significant reasons were offered to 
explain why Sec.  205.4(e) is inadequate in the payroll card account 
context.

18(b) Alternative to Periodic Statement

    Section 205.18(b) provides financial institutions flexibility in 
providing account information to consumers. Financial institutions may 
elect to provide periodic statements under Sec.  205.9 as they would 
for other accounts. As an alternative to providing periodic statements, 
institutions may instead: (1) Make available to the consumer the 
account balance through a readily available telephone line; (2) make 
available to the consumer an electronic history (such as via an 
Internet Web site) of the consumer's account transactions that covers 
at least 60 days preceding the date the consumer electronically 
accesses the account; and (3) provide promptly upon the consumer's oral 
or written request, a written history of the consumer's account 
transactions that covers at least 60 days preceding the date of receipt 
of the consumer's request. As further explained below in the context of 
error resolution time frames, a consumer ``electronically accesses'' an 
account once the consumer enters a user identification code or a 
password or otherwise complies with a security procedure used by an 
institution to verify the consumer's identity.
    Consistent with the EBT rule, and as for EFT systems generally, a 
readily available telephone line is a local or toll-free line available 
at least during standard business hours. Institutions may of course 
choose to provide recipients with a line available 24 hours. See 59 FR 
at 10,681. The readily available phone line may be automated, in which 
case institutions will likely provide 24-hour access to balance 
information. Model Form A-7(a), discussed below, sets forth a model 
clause that institutions may use to inform consumers about how to 
access their account information, including the telephone number that 
consumers may call to obtain balance information.
    The requirement to provide a written history of account 
transactions promptly upon the consumer's oral or written request 
addresses the possibility that some consumers may have limited on-line 
access. The Board anticipates that, in general, written histories will 
be sent the same day or soon after the consumer makes an oral request, 
and within a few days after the consumer's request in writing is 
received by an institution (to account for any time lags that may arise 
in routing the consumer's written request to the appropriate person). 
Institutions may also provide a specific telephone number or address 
for consumers to request a written history of account transactions. 
Comment is

[[Page 1478]]

solicited as to whether the option to obtain a written history of 
account transactions is necessary or appropriate.
    The Board recognizes that requiring financial institutions to 
provide 60 days' worth of account transaction information differs from 
the rule in Sec.  205.9(b), which requires financial institutions to 
provide transaction information for EFTs that have occurred during a 
monthly cycle. The Board nevertheless believes that 60 days is 
appropriate for payroll card accounts because, unlike for accounts 
generally under Regulation E, institutions will not be required to send 
a statement of account transactions to consumers with payroll card 
accounts on a regular basis. Without a longer time period for account 
transactions, some payroll card account holders might waive their right 
to assert an error under Sec.  205.11 if they do not access their 
transaction history on at least a monthly basis. The Board further 
notes that the requirement to provide a 60-day account history is also 
the time period used in the EBT rule.
    To ensure that consumers are able to review their account 
transactions and to effectively exercise their error resolution rights, 
Sec.  205.18(b)(2) of the interim final rule requires the same type of 
account transaction information to be provided to consumers that is set 
forth under Sec.  205.9(b)(1)-(6), whether the history of account 
transactions is provided electronically or in writing. For example, 
consumers must be provided with information about fees incurred in 
connection with EFTs and payroll card accounts.
    Comment is solicited as to whether additional transaction 
information should be provided to payroll card users, or whether 
certain information should be excluded from the history of account 
transactions. Comment is also solicited regarding the feasibility of 
providing consumers with a rolling history of 60 days' worth of 
transactions.

18(c) Modified Requirements

Initial Disclosures and Annual Error-Resolution Notice
    For financial institutions that do not furnish periodic statements, 
Sec.  205.18(c) sets forth provisions clarifying how to satisfy the 
requirements relating to disclosures, liability limits, and error 
resolution procedures under Regulation E. Section 205.18(c)(1) 
generally sets forth modified disclosures that a financial institution 
must provide in addition to or in lieu of required initial disclosures 
under Sec.  205.7(b). Section 205.18(c)(1)(i) requires financial 
institutions to include in the initial disclosures for payroll card 
accounts the means by which a consumer can access information about his 
or her account, including the telephone number that the consumer may 
call to obtain his or her account balance, and information on how the 
consumer can electronically obtain a history of account transactions, 
such as the address of an Internet Web site. Institutions must also 
include in their initial disclosures, in place of the disclosure 
required by Sec.  205.7(b)(6), a summary of the consumer's right to 
obtain a written history of account transactions upon request, 
including a telephone number to call to request a history. Section 
205.18(c)(1)(ii) requires financial institutions to provide in initial 
disclosures a notice explaining the error resolution rights associated 
with payroll card accounts in place of the notice required by Sec.  
205.7(b)(10).
    Section 205.18(c)(2) requires financial institutions to provide an 
annual notice describing error-resolution rights, in place of the 
notice required by Sec.  205.8(b). The interim final rule provides 
Model Forms which financial institutions may use to facilitate 
compliance with the interim final rule in section A-7 in appendix A to 
part 205.
Limitations on Liability and Error Resolution
    Sections 205.18(c)(3) and (4) of the interim final rule explain the 
application of the regulation's limitations on liability and error 
resolution procedures when a financial institution opts not to provide 
paper periodic statements. Section 205.18(c)(3) specifies two different 
triggers for beginning the 60-day period for limiting liability for 
unauthorized EFTs, depending on when and how the consumer has obtained 
a history of his or her account transactions. If the consumer obtains 
transaction information electronically under Sec.  205.18(b)(1)(ii), 
the 60-day period begins on the date the account is electronically 
accessed by the consumer. If the consumer has requested a written 
history of his or her account transactions under Sec.  
205.18(b)(1)(iii), the 60-day period begins on the date the institution 
sends the written history. The interim final rule specifies that the 
applicable 60-day period for reporting an unauthorized EFT begins on 
the earlier of these two dates to clarify when the 60-day period begins 
to run where a consumer reviews his account transactions for errors 
both electronically as well as using a written history the consumer has 
requested. For example, assume that a consumer reviews his or her 
transactions on-line on June 1, and subsequently requests a written 
history on June 5, which is sent by the financial institution that day. 
In this case, the consumer's 60-day period for asserting an 
unauthorized EFT appearing both electronically and on the written 
history begins running on June 1 when the consumer first electronically 
accessed the account. As further explained below in the context of 
error resolution procedures, in order for the 60-day period to begin 
running, the unauthorized transfer must have been available for the 
consumer to review when the consumer electronically accessed his or her 
account, or when the consumer obtained a written history of account 
transactions.
    Section 205.18(c)(4) establishes a similar rule for establishing 
when the 60-day period for reporting an error begins for purposes of 
the error resolution procedures set forth in Sec.  205.11, depending 
upon how the consumer has obtained the history of his or her account 
transactions on which an error appears. Accordingly, a financial 
institution must comply with the error resolution requirements set 
forth in Sec.  205.11 if it receives a consumer's oral or written 
notice of error no later than 60 days after the earlier of: (1) The 
date the consumer electronically accesses his or her account under 
Sec.  205.18(c)(1)(ii); or (2) the date the institution sends a written 
history of the consumer's account transactions that has been requested 
under Sec.  205.18(b)(1)(iii) in which the error is first reflected. 
The first trigger further requires that the financial institution has 
made available to the consumer information about the EFT for which the 
consumer asserts an error on the date that the consumer electronically 
accesses his or her account (e.g., by posting the information about the 
transfer on an Internet Web site).
    With respect to electronic access, the Board does not intend for 
the 60-day periods for liability limits and error resolution to begin 
running if the consumer merely, for example, visits an Internet Web 
site where his or her account information and other information can be 
retrieved. Rather, the 60-day period would begin once the consumer 
enters a user identification code or a password or otherwise complies 
with a security procedure used by an institution to verify the 
consumer's identity. However, the interim final rule does not require 
institutions to determine whether the consumer has in fact accessed 
information about specific transactions involving the consumer's 
payroll card account to trigger the beginning of the 60-day period for 
liability limits and

[[Page 1479]]

error resolution rights. The Board also notes that, in contrast to the 
EBT rule, the 60-day period is not triggered when a consumer obtains 
balance information via the telephone.
    Comment is requested regarding the feasibility of determining when 
a consumer has electronically accessed his or her account. Comment is 
also requested regarding whether other means of triggering the 60-day 
time periods for establishing liability for unauthorized EFTs or for 
error resolution may be appropriate. In particular, comment is 
requested regarding the feasibility of determining when a consumer has 
accessed specific transaction information about his or her payroll card 
account where the consumer can also access other personal information 
connected to his or her employment (e.g., health benefits or insurance) 
on the same Internet Web site.
Example
    As discussed above, the history of account transactions provided 
under Sec.  205.18(c)(1), whether provided electronically or in 
writing, must cover at least 60 days preceding the date of the 
institution's receipt of a request for the history by the consumer. 
Thus, assume, for example, that a consumer uses a password to 
electronically access his or her payroll card account, or is sent a 
written history the consumer has requested, on June 1. The history of 
account transactions provided electronically or sent to the consumer 
must cover a period of at least 60 days prior to June 1, and would 
include any EFTs occurring between April 2 and May 31. Assuming that 
the consumer did not previously access or receive account information 
reflecting the covered EFTs, the consumer would have 60 days, or until 
July 30, to assert any unauthorized EFTs or other errors occurring 
between April 2 and May 31 to preserve his or her rights under 
Sec. Sec.  205.6 and 205.11 with respect to those transfers.
    In the example, suppose the consumer electronically accesses his or 
her account on June 1 and discovers an error that occurred on May 10. 
In this case, the consumer must provide notice of that error to the 
institution by July 30 to trigger the institution's obligation to 
investigate the error. Thus, although the consumer has 60 days 
following the date he or she obtains the history of account 
transactions to assert any errors appearing on that history, it does 
not necessarily mean that the consumer has 60 days following the date 
of the error to provide notice of that error to the institution. 
Accordingly, if the consumer provides a notice of the May 10 error 
after July 30, the institution is not required to comply with the 
procedures and time limits in Sec.  205.11 for investigating the error. 
See comment 11(b)-7. Nevertheless, if the error involves an 
unauthorized EFT, liability for the unauthorized transfer may not be 
imposed on the consumer unless the institution satisfies the 
requirements of Sec.  205.6.
Additional Issues
    In addition to scope and periodic statement issues, commenters 
raised a few additional issues with respect to the proposal. As part of 
the proposal, the Board sought public comment on ongoing rulemaking 
efforts by the Federal Deposit Insurance Corporation (FDIC) to amend, 
revise, or interpret the meaning of the terms ``deposit'' with respect 
to stored-value or prepaid products, and possibly payroll card 
products.\3\ The overwhelming majority of commenters urged the Board 
not to link its treatment of payroll card accounts under Regulation E 
to the FDIC's regulatory proposals. Many commenters also raised 
concerns that the treatment of payroll card products as ``accounts'' 
under Regulation E might make the Board, or other regulators, more 
likely to deem such products ``accounts,'' ``deposits,'' or ``account 
relationships'' for purposes of other laws (e.g., for customer 
identification procedures under the USA PATRIOT Act, for reserve 
requirements under the Board's Regulation D, for Truth in Savings Act 
purposes, and possibly for other issues under provisions of state law). 
The Board notes that the definition of ``account'' under the EFTA and 
Regulation E does not incorporate the definitions of ``account'' or 
``deposit'' as described in other laws. Accordingly, the definition of 
``payroll card account'' in this interim final rule is intended only to 
address coverage issues under Regulation E, and is not intended to 
address the definition of ``account'' for purposes of any other statute 
or regulation.
---------------------------------------------------------------------------

    \3\ See generally 70 FR 45571 (August 8, 2005); 69 FR 20558 
(April 16, 2004) (FDIC proposals to clarify the insurance coverage 
of funds accessed through stored-value cards and other 
nontraditional access mechanisms).
---------------------------------------------------------------------------

    One large provider of payroll cards sought clarification as to 
whether a ``dual function'' payroll card account is covered under the 
rule. Under a dual function card account, part of the account holds 
employer-funded ``corporate expense funds,'' and the remaining 
segregated portion of the card holds employer-transmitted wages 
belonging to the employee. The Board believes the segregated corporate 
expense portion of the account accessible by the card is not a 
``payroll card account'' because the funds are not primarily for 
personal, family, or household purposes. The remaining funds that 
consist of the consumer's wages would qualify as funds held in a 
``payroll card account.''
    Several industry commenters requested that the Board clarify 
whether, or to what extent, the ``compulsory use'' provisions of 
Regulation E apply to payroll card accounts. Section 205.10(e)(2) 
prohibits a financial institution from requiring a consumer to 
establish an account with a particular institution for receipt of EFTs 
as a condition of employment or receipt of a government benefit. As 
clarified by the existing commentary, an employer may not require its 
employees to receive their salary by direct deposit to any particular 
institution, although an employer may: (1) Require direct deposit of 
salary by electronic means if employees may choose the institution that 
will receive the direct deposit; or alternatively, (2) give the 
employee the choice of having his or her salary deposited at a 
particular institution designated by the employer, or receiving their 
salary by check or cash. The Board believes the compulsory use 
provisions apply to payroll card accounts because they are established 
as accounts for the receipt of EFTs of salary. However, provided that 
an employer does not require a consumer to obtain a payroll card 
account as the method of receiving pay, and permits, for example, a 
consumer to receive pay via direct deposit to a financial institution, 
the compulsory use prohibition should not be implicated.
    Many providers of payroll card accounts urged the Board to provide 
a 12-month period in which to bring payroll card programs into 
compliance. Many consumer commenters believed that a six-month period 
is adequate. The effective date of the interim final rule is July 1, 
2007. The Board anticipates that financial institutions will have at 
least one year following publication of a final rule on payroll card 
accounts to adjust their programs for compliance.

A-7--Model Clauses for Financial Institutions Offering Payroll Card 
Accounts

    Model Form A-7 is added to provide model clauses consistent with 
the new Sec.  205.18 alternate provisions for financial institutions 
who offer payroll card accounts and who do not provide the periodic 
statement required under Sec.  205.9(b). These clauses, which are 
modeled after similar clauses provided

[[Page 1480]]

under Appendix A-5 for EBT accounts, are intended to provide model 
language to assist payroll card issuers in providing disclosure 
information with respect to obtaining account balances and account 
histories, as well as error resolution procedures. Comment 2 for 
Appendix A has been revised to make clear that the use of such clauses 
in making these disclosures in connection with payroll card accounts 
will protect a financial institution from liability under sections 915 
and 916 of the EFTA if the clauses accurately reflect the institution's 
EFT services. Additionally, a typographical error has also been 
corrected in the interim final rule. Currently the comment references 
``205.15(d)(7),'' when in fact the correct reference is ``(d)(1).'' As 
no subsection ``(d)(7)'' exists, an appropriate technical correction 
has been incorporated.

V. Final Regulatory Flexibility Analysis

    The Board prepared a regulatory flexibility analysis as required by 
the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) in 
connection with the September 2004 proposal. The Board received no 
comments on its regulatory flexibility analysis.
    Under section 605(b) of the RFA, 5 U.S.C. 605(b), the regulatory 
flexibility analysis otherwise required under section 604 of the RFA is 
not required if an agency certifies, along with a statement providing 
the factual basis for such certification, that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Based on its analysis and for the reasons stated below, the Board 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities.
    1. Statement of the need for, and objectives of, the interim final 
rule. The EFTA was enacted to provide a basic framework establishing 
the rights, liabilities, and responsibilities of participants in 
electronic fund transfer systems. The primary objective of the EFTA is 
the provision of individual consumer rights with regard to electronic 
fund transfers. 15 U.S.C. 1693. The EFTA authorizes the Board to 
prescribe regulations to carry out the purpose and provisions of the 
statute. 15 U.S.C. 1693b(a). The EFTA expressly states that the Board's 
regulations may contain ``such classifications, differentiations, or 
other provisions, * * * as, in the judgment of the Board, are necessary 
or proper to effectuate the purposes of [the EFTA], to prevent 
circumvention or evasion [of the act], or to facilitate compliance 
[with the EFTA].'' 15 U.S.C. 1693b(c). The EFTA also states that ``[i]f 
electronic fund transfer services are made available to consumers by a 
person other than a financial institution holding a consumer's account, 
the Board shall by regulation assure that the disclosures, protections, 
responsibilities, and remedies created by [the EFTA] are made 
applicable to such persons and services.'' 15 U.S.C. 1693b(d).
    The Board is revising Regulation E to provide that payroll card 
accounts directly or indirectly established by an employer on behalf of 
a consumer to which EFTs of the consumer's wages, salary, or other 
employee compensation are made on a recurring basis are ``accounts'' 
subject to Regulation E. The Board believes that the revisions to 
Regulation E as discussed in the SUPPLEMENTARY INFORMATION are within 
Congress' broad grant of authority to the Board to adopt provisions 
that carry out the purposes of the statute.
    2. Issues raised by comments in response to the initial regulatory 
flexibility analysis. In accordance with section 3(a) of the RFA, the 
Board conducted an initial regulatory flexibility analysis in 
connection with the proposed rule. The Board did not receive any 
comments on its initial regulatory flexibility analysis with respect to 
the portions relating to payroll card accounts.
    3. Small entities affected by the final rule. Employers, payroll 
card services providers and depository institutions are required to 
comply with the interim final rule under Regulation E to the extent 
that they are engaged in providing payroll card accounts to consumers. 
Based on available information, the interim final rule will apply to 
the following institutions (numbers approximate): Employers (5,000), 
payroll card services providers (40), and depository institutions (60), 
for a subtotal of approximately 5,100 institutions. The Board estimates 
that over 4,000 of these institutions could be considered small 
institutions with assets less than $150 million.
    All small entities that are engaged in providing payroll card 
accounts are affected by the requirements established by this interim 
final rule, including initial disclosures, error resolution procedures, 
and the provision of account information.
    4. Recordkeeping, reporting, and compliance requirements. 
Institutions must provide an initial disclosure to payroll card account 
holders regarding the means by which the holder may obtain account 
information and the means by which the holder may resolve errors. In 
order to comply with the amendments to Regulation E, institutions must 
review their account-opening disclosures to ensure compliance with the 
regulation; and some institutions may be required to revise their 
disclosures. (The rule provides model disclosures to facilitate the 
revision of the disclosures and to ensure compliance.) In addition, if 
the institution elects not to provide periodic statements, the 
institution must establish systems for delivering account information 
electronically and by telephone. Institutions also will be required to 
implement error resolution provisions under the interim final rule to 
the extent that they do not currently have such procedures.
    After conducting focus group studies on the use of payroll cards 
and reviewing several of the payroll card products currently available, 
the Board understands that many small employers, payroll card services 
providers, and depository institutions that provide such products are 
currently providing account-opening disclosures for payroll card 
accounts, and generally have in place error resolution procedures. In 
addition, the Board understands that many, if not all, institutions 
providing payroll cards make information regarding those payroll card 
accounts available to the holders via telephone and electronic access. 
In light of the fact that the interim final rule codifies the current 
practices and procedures of many payroll card providers and provides an 
alternative to periodic statements, the Board concludes that the 
interim final rule will not have a substantial economic impact on small 
entities.
    5. Other Federal rules. The Board believes no Federal rules 
duplicate, overlap, or conflict with the interim final revisions to 
Regulation E.
    6. Steps taken to minimize the economic impact on small entities. 
The Board solicited comment about potential ways to reduce regulatory 
burden. Commenters urged the Board to eliminate the periodic statement 
requirement, asserting that other more cost-effective methods of 
providing transaction information could provide consumers with the 
information necessary to enable consumers to manage their payroll card 
accounts. In the interim final rule, financial institutions engaged in 
providing payroll card accounts may elect not to provide periodic 
statement in paper form if they make available balance information to 
consumers though a readily-available telephone line and make available 
account transaction information electronically, such as through an 
Internet Web site. These financial institutions will also be required 
to provide a written history of

[[Page 1481]]

account transactions upon the consumer's request.

VI. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (PRA) of 1995 (44 
U.S.C. 3506; 5 CFR Part 1320, Appendix A.1), the Board reviewed the 
rule under the authority delegated to the Board by the Office of 
Management and Budget (OMB). The final rule contains requirements 
subject to the PRA. The collection of information that is required by 
this rule is found in 12 CFR 205.2(b)(2) and 205.18. The Federal 
Reserve may not conduct or sponsor, and an organization is not required 
to respond to, this information collection unless the information 
collection displays a currently valid OMB control number. The OMB 
control number is 7100-0200. This information is required to provide 
benefits to consumers and is mandatory (15 U.S.C. 1693 et seq.). The 
respondents/recordkeepers are for-profit financial institutions, 
including small businesses. Institutions are required to retain records 
for 24 months.
    All financial institutions involved in providing payroll card 
accounts to consumers (i.e., employers, payroll card services 
providers, and depository institutions), of which there are 
approximately 5,100, potentially are affected by this collection of 
information because these institutions will be required to provide 
initial disclosures, account transaction histories, error resolution 
procedures, and other consumer protections, to consumers who receive 
their salaries through payroll card accounts as defined in Sec.  
205.2(b)(2).
    The following estimates represent an average across all respondents 
and reflect variations among institutions based on their size, 
complexity, and practices. The other Federal agencies are responsible 
for estimating and reporting to OMB the total paperwork burden for the 
institutions for which they have administrative enforcement authority. 
They may, but are not required to, use the Federal Reserve's burden 
estimate methodology.
    The interim final rule provides disclosure obligations when one or 
more parties is involved in offering payroll card accounts as defined 
in Sec.  205.2(b)(2)--whether the financial institution is an employer, 
a depository institution, or other third party involved in holding 
payroll card accounts or in the issuance of payroll cards. Such 
entities are required to fully comply with Regulation E, as amended by 
this interim final rule, and provide disclosure of basic terms, costs, 
and rights relating to electronic fund transfer services in connection 
with the payroll card account. Parties that jointly offer such accounts 
may contract among themselves to comply with the regulation by 
providing one set of disclosures. Certain information must be disclosed 
to consumers, including: Initial and updated EFT terms, transaction 
information, the consumer's potential liability for unauthorized 
transfers, and error resolution rights and procedures.
    The Federal Reserve estimates that of the 1,289 respondents 
regulated by the Federal Reserve that are required to comply with 
Regulation E, approximately 5 participate in payroll card programs. The 
Federal Reserve estimates that each respondent will take, on average, 8 
hours (one business day) to reprogram and update their systems to 
provide initial disclosures to payroll card account holders. The 
Federal Reserve also estimates that each respondent will take, on 
average, 7 hours to reprogram and update systems to provide periodic 
statements, or to provide account information by other means. Finally, 
the Federal Reserve estimates that each respondent will take, on 
average, 8 hours (one business day) to develop error resolution 
procedures. The total annual burden for respondents regulated by the 
Federal Reserve for all of these disclosures is estimated to be 115 
hours. Using the Federal Reserve's methodology, the total annual burden 
for all other institutions offering payroll