Electronic Fund Transfers (Regulation E), 70319-70320 [2016-24506]

Download as PDF 70319 Rules and Regulations Federal Register Vol. 81, No. 197 Wednesday, October 12, 2016 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. BUREAU OF CONSUMER FINANCIAL PROTECTION 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 ‘‘§ 1005.16(a)(1).’’ This is a clerical error, as there is no such paragraph in § 1005.16. The definition of ‘‘automated teller machine operator’’ is set forth in § 1005.16(a). Accordingly, this final rule corrects the erroneous cross reference in § 1005.7(b)(11) by changing it from § 1005.16(a)(1) to § 1005.16(a). 12 CFR Part 1005 Subpart B Electronic Fund Transfers (Regulation E) 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 § 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 § 1005.31(b)(2)(vi) in its entirety. The Bureau notes that other model forms in subpart B that contain the statement required by § 1005.31(b)(2)(vi) accurately reflect the statement. Official interpretation to § 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 § 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 § 1005.33(h). Comment 33(a)–9 explains the application of § 1005.33(a)(1)(iv)(D). However, it erroneously cross-references § 1005.30(h)(2) when it should have Bureau of Consumer Financial Protection. ACTION: Final rule; correcting amendments. AGENCY: 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: SUMMARY: I. Overview mstockstill on DSK3G9T082PROD with RULES 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). VerDate Sep<11>2014 16:05 Oct 11, 2016 Jkt 241001 3 See 77 FR 6193, 6228 (Feb. 12, 2012) (explaining the contents of Model Form A–37). PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 crossed-referenced § 1005.33(a)(1)(iv)(D). This final rule corrects this error by removing the erroneous cross reference to § 1005.30(h)(2) and replacing it with the correct cross reference to § 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 § 1005.13’s record retention requirements. However, instead of cross-referencing § 1005.33(g)(2), where this requirement resides, the comment cross-references § 1005.31(g)(2). This final rule corrects the erroneous cross reference in comment 33(g)–1 by changing it from § 1005.31(g)(2) to § 1005.33(g)(2). Official interpretation to § 1005.36. Currently, there are two section headings in the commentary to § 1005.36 (Transfers Scheduled before the Date of Transfer). The existence of two separate headings for the commentary to § 1005.36 is a clerical error. Further, one of the headings is different from the heading of § 1005.36 in the regulatory text. This final rule removes the erroneous heading so that the heading that remains in the commentary to § 1005.36 has the same heading as the heading of § 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. E:\FR\FM\12OCR1.SGM 12OCR1 70320 Federal Register / Vol. 81, No. 197 / Wednesday, October 12, 2016 / Rules and Regulations Authority and Issuance Accordingly, 12 CFR part 1005 is corrected by making the following correcting amendments: PART 1005—ELECTRONIC FUND TRANSFERS (REGULATION E) 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. * Initial disclosures. * * * * * (b) * * * (11) ATM fees. A notice that a fee may be imposed by an automated teller machine operator as defined in § 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. * * * * * ■ 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) (§ 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 * * * * * 4. In Supplement I to Part 1005— Official Interpretations: ■ a. Under Section 1005.33—Procedures for Resolving Errors: ■ i. In subsection 33(a)—Definition of Error, paragraph 9 is revised. ■ ii. In subsection 33(g)—Error Resolution Standards and Recordkeeping Requirements, paragraph 1 is revised. mstockstill on DSK3G9T082PROD with RULES ■ VerDate Sep<11>2014 * * * * 16:05 Oct 11, 2016 Jkt 241001 § 1005.31(g) and related commentary continue to apply to disclosures provided in accordance with § 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 * DEPARTMENT OF COMMERCE Bureau of Industry and Security 33(a) Definition of Error 2. Section 1005.7 is amended by revising paragraph (b)(11) to read as follows: ■ * Supplement I to Part 1005—Official Interpretations Section 1005.33—Procedures for Resolving Errors Subpart A—General § 1005.7 b. The heading Section 1005.36— Transfers Scheduled in Advance and paragraph 1 underneath said heading are removed. ■ c. Under Section 1005.36—Transfers Scheduled before the Date of Transfer, paragraph 1 is added. The revisions and additions read as follows: ■ * * * * 9. Account number or recipient institution identifier. For purposes of the exception in § 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 § 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 § 1005.33(g)(2), remittance transfer providers are subject to the record retention requirements under § 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 § 1005.36, to the extent that § 1005.36 does not modify those requirements. For example, the foreign language disclosure requirements in PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 15 CFR Parts 734, 740, 742, 744, 772, and 774 [Docket No. 140221170–6403–03] RIN 0694–AF75 Revisions to the Export Administration Regulations (EAR): Control of Fire Control, Laser, Imaging, and Guidance Equipment the President Determines No Longer Warrant Control Under the United States Munitions List (USML) Bureau of Industry and Security, Department of Commerce. ACTION: Final rule. AGENCY: This final rule describes how articles the President determines no longer warrant control under Category XII (Fire Control, Laser, Imaging, and Guidance Equipment) of the United States Munitions List (USML) of the International Traffic in Arms Regulations (ITAR) will be controlled under the Commerce Control List (CCL) of the Export Administration Regulations (EAR) by amending Export Control Classification Number (ECCN) 7A611 and creating new ‘‘600 series’’ ECCNs 7B611, 7D611, and 7E611. In addition, for certain dual-use infrared detection items, this final rule expands controls for certain software and technology, eliminates the use of some license exceptions, revises licensing policy, and expands license requirements for certain transactions involving military end users or foreign military commodities. This final rule also harmonizes provisions within the EAR by revising controls related to certain quartz rate sensors. DATES: This rule is effective December 31, 2016. FOR FURTHER INFORMATION CONTACT: For questions regarding the ECCNs included in this rule, contact Dennis Krepp, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, Telephone: 202– 482–1309, Email: SUMMARY: E:\FR\FM\12OCR1.SGM 12OCR1

Agencies

[Federal Register Volume 81, Number 197 (Wednesday, October 12, 2016)]
[Rules and Regulations]
[Pages 70319-70320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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