To: All Member Banks in the Third Federal Reserve District
Attention: Chief Executive Officer and Chief Compliance Officer
Subject: REGULATION E: ELECTRONIC FUND TRANSFERS; PROPOSED RULE, OFFICIAL STAFF INTERPRETATION
The Board of Governors of the Federal Reserve System has published proposed amendments to Regulation E, which implements the Electronic Fund Transfer Act, and to the regulation’s official staff commentary that clarify the disclosure obligations of automated teller machine (ATM) operators with respect to fees imposed on a consumer for initiating an electronic fund transfer or a balance inquiry at an ATM. The commentary interprets the requirements of Regulation E to facilitate compliance primarily by financial institutions that offer electronic fund transfer services to consumers.
Currently, the regulation provides that an ATM operator that charges a fee for initiating an electronic fund transfer or balance inquiry must post notices at ATMs that a fee will be imposed. The proposed revisions would clarify the intent of the rule that ATM operators can satisfy the requirement by providing a notice that a fee “may” be imposed if there are circumstances under which some consumers would not be charged for services. ATM operators must continue to provide the consumer with a separate notice, either on the screen of the ATM or on paper, that a fee will be imposed and the amount of the fee, before the consumer is committed to paying a fee.
The Board is continuing to consider other issues that were addressed in its proposed September, 2004 update to Regulation E.
The Federal Register notice, published August 25, 2005.
Date: Comments are due on or before October 7, 2005.
For Further Information: Ky Tran-Trong, Senior Attorney, or Daniel G. Lonergan, David A. Stein, Natalie E. Taylor or John C. Wood, Counsels, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, at (202) 452-2412 or (202) 452-3667. For users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263-4869.