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September 7, 2006
To: All Member Banks and Others Concerned in the Third Federal Reserve District
Attention: Chief Executive Officer and Chief Compliance Officer
Subject: Regulation E; Electronic fund transfers: Final rule & official staff interpretation
The Board of Governors of the Federal Reserve System has announced its approval of a final rule to provide that payroll card accounts are covered by the Board’s consumer protection regulation governing electronic fund transfers.
The final rule grants flexibility to financial institutions that must provide account transaction information to payroll card users. Under the rule, institutions are not required to provide paper periodic statements to consumers if the institution makes account transaction information available by telephone, electronically, and, upon the consumer’s request, in writing.
The amendments to address payroll card accounts are being made to Regulation E, which implements the Electronic Fund Transfer Act, and to the official staff commentary, which interprets the requirements of Regulation E. The effective date is July 1, 2007.
The Federal Register notice, published August 30, 2006, is attached.
Date: The final rule is effective on July 1, 2007
Ky Tran-Trong, Senior Attorney, or David A. Stein 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.