[Federal Register Volume 84, Number 213 (Monday, November 4, 2019)]
[Notices]
[Pages 59446-59449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23960]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Information Collection
Revision; Submission for OMB Review; Regulation E--Electronic Fund
Transfer Act and Regulation Z--Truth in Lending Act
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Notice and request for comment.
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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites the general public and other federal
agencies to take this opportunity to comment on a continuing
information collection as required by the Paperwork Reduction Act of
1995 (PRA).
An agency may not conduct or sponsor, and respondents are not
required to respond to, an information collection unless it displays a
currently valid Office of Management and Budget (OMB) control number.
The OCC is soliciting comment concerning revisions to the
information collections titled ``Regulation E--Electronic Fund Transfer
Act'' and ``Regulation Z--Truth in Lending Act.'' The OCC also is
giving notice that it has sent the collection to OMB for review.
DATES: Comments must be submitted on or before December 4, 2019.
ADDRESSES: Commenters are encouraged to submit comments by email, if
possible. You may submit comments by any of the following methods:
Email: [email protected].
Mail: Chief Counsel's Office, Attention: Comment
Processing, 1557-NEW, Office of the Comptroller of the Currency, 400
7th Street SW, Suite 3E-218, Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``1557-NEW'' in your comment. In general, the OCC will publish comments
on www.reginfo.gov without change, including any business or personal
information provided, such as name and address information, email
addresses, or phone numbers. Comments received, including attachments
and other supporting materials, are part of the public record and
subject to public disclosure. Do not include any information in your
comment or supporting materials that you consider confidential or
inappropriate for public disclosure.
Additionally, please send a copy of your comments by mail to: OCC
Desk Officer, 1557-NEW, U.S. Office of Management and Budget, 725 17th
Street NW, #10235, Washington, DC 20503 or by email to
[email protected].
You may review comments and other related materials that pertain to
this information collection \1\ following the close of the 30-day
comment period for this notice by any of the following methods:
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\1\ On May 20, 2019, the OCC published a 60-day notice for this
information collection, 84 FR 22931.
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Viewing Comments Electronically: Go to www.reginfo.gov.
Click on the ``Information Collection Review'' tab. Underneath the
``Currently under Review'' section heading, from the drop-down menu
select ``Department of Treasury'' and then click ``submit.'' This
information collection can be located by searching by OMB control
number ``1557-NEW'' or ``Regulation E--Electronic Fund Transfer Act''
and ``Regulation Z--Truth in Lending Act.'' Upon finding the
appropriate information collection, click on the related ``ICR
Reference Number.'' On the next screen, select ``View Supporting
Statement and Other Documents'' and then click on the link to any
comment listed at the bottom of the screen.
For assistance in navigating www.reginfo.gov, please
contact the Regulatory Information Service Center at (202) 482-7340.
Viewing Comments Personally: You may personally inspect
comments at the OCC, 400 7th Street SW, Washington, DC. For security
reasons, the OCC requires that visitors make an appointment to inspect
comments. You may do so by calling (202) 649-6700 or, for persons who
are deaf or hearing impaired, TTY, (202) 649-5597. Upon arrival,
visitors will be required to present valid government-issued photo
identification and submit to security screening in order to inspect
comments.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance
Officer, (202) 649-5490 or, for persons who are deaf or hearing
impaired, TTY, (202) 649-5597, Chief Counsel's Office, Office of the
Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219.
[[Page 59447]]
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501 et seq.),
federal agencies must obtain approval from the OMB for each collection
of information that they conduct or sponsor. ``Collection of
information'' is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to
include agency requests or requirements that members of the public
submit reports, keep records, or disclose information to a third party.
The OCC asks that it approve the information collection contained in
this notice.
Title: Regulation E--Electronic Fund Transfer Act and Regulation
Z--Truth in Lending Act.
OMB Control Nos.: 1557-NEW.\2\
Type of Review: Regular review.
Description: The Electronic Fund Transfer Act (EFTA) \3\ and
Regulation E \4\ require disclosure of basic terms, costs, and rights
relating to electronic fund transfer services debiting or crediting a
consumer's account. The Truth in Lending Act (TILA) \5\ and Regulation
Z \6\ require that the costs and terms of credit be disclosed to
consumers.
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\2\ Regulations E and Z are currently covered by OMB Control No.
1557-0176, which also covers other consumer regulations. The OCC is
requesting a new control number for this portion of Regulations E
and Z only.
\3\ 15 U.S.C. 1693 et seq.
\4\ 12 CFR part 1005.
\5\ 15 U.S.C. 1601 et seq.
\6\ 12 CFR part 1026.
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The Prepaid Accounts final rules issued by the Consumer Financial
Protection Bureau (CFPB) \7\ require financial institutions to make
available to consumers disclosures before a consumer acquires a prepaid
account. This notice outlines the requirements of the 2016 rule as
amended by the 2018 rule.
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\7\ 81 FR 83934 (November 22, 2016) and 83 FR 6364 (February 13,
2018).
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Regulation E
Under 12 CFR 1005.18(b), a financial institution is required to
make available a short form and a long form disclosure before the
consumer acquires a prepaid account, subject to certain exceptions.
Most of the content required in the long form disclosure is already
provided in prepaid account agreements. Section 1005.18(f)(3) requires
that certain disclosures be made on the actual prepaid account access
device, including the name of the financial institution and the URL of
its website, and a telephone number the consumer may use to contact the
financial institution about the prepaid account.
Financial institutions offering prepaid accounts that qualify for
the retail location exception in Sec. 1005.18(b)(1)(ii) may meet the
requirement of providing the long form disclosure after acquisition by
allowing the long form disclosure to be delivered electronically,
without receiving consumer consent under the E-Sign Act,\8\ if the
disclosure is not provided inside the prepaid account packaging
material and the financial institution is not otherwise mailing or
delivering to the consumer written account-related communications
within 30 days of obtaining the consumer's contact information. If a
financial institution provides pre-acquisition disclosures in writing
and a consumer subsequently completes the acquisition process online or
by telephone, the financial institution is not required to provide the
disclosures again either electronically or orally. Financial
institutions that disclose additional fee types with three or more fee
variations may consolidate them into two categories and disclose them
on the short form.
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\8\ Electronic Signatures in Global and National Commerce Act
(E-Sign Act) (15 U.S.C. 7001 et seq.).
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Section 1005.18(b)(9)(i)(C) includes a requirement that a financial
institution provide pre-acquisition disclosures in a foreign language
if the financial institution provides a means for the consumer to
acquire a prepaid account by telephone or electronically principally in
that foreign language. That requirement is not applicable to payroll
card accounts and government benefit accounts where the foreign
language is offered by telephone only via a real-time language
interpretation service provided by a third party or directly by an
employer or government agency on an informal or ad hoc basis as an
accommodation to prospective payroll card account or government benefit
account recipients.
Section 1005.18(c)(1) requires financial institutions to furnish
periodic statements to the consumer unless the provider uses the
alternative method of compliance. Under this alternative method, the
periodic statements must include: (1) A telephone number that the
consumer may call to obtain the account balance; (2) the means by which
the consumer can obtain an electronic account history, such as the
address of a website; and (3) a summary of the consumer's right to
receive a written account history upon request (in place of the summary
of the right to receive a periodic statement required by Sec.
1005.7(b)(6)), including a telephone number to call to request a
history. Section 1005.18(c)(5) requires that financial institutions
disclose to consumers a summary total of the amount of all fees
assessed against the consumer's prepaid account for both the prior
month as well as the calendar year to date. This information must be
disclosed on any periodic statement and any electronic or written
history of account transactions provided or made available by the
financial institution.
The limited liability and error provisions of Regulation E now
extend to all prepaid accounts, except those that have not successfully
completed the financial institution's consumer identification and
verification process. With regard to accounts where the consumer's
identity is later verified, financial institutions are not required to
resolve errors and limit liability for disputed transactions occurring
prior to the verification. For accounts in programs where there is no
verification process, financial institutions must either explain in
their initial disclosures their error resolution process and
limitations on consumers' liability for unauthorized transfers, or
explain that there are no such protections, and that such financial
institutions comply with the process (if any) that they disclose.\9\
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\9\ 12 CFR 1005.18(e)(1) and (2).
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Pursuant to Sec. 1005.18(h)(1), except as provided in Sec.
1005.18(h)(2) and (3), the effective date for the Prepaid Accounts
Rules is April 1, 2019. If, as a result of Sec. 1005.18(h)(1), a
financial institution changes the terms and conditions of a prepaid
account, such that a change-in-terms notice would have been required
under Sec. 1005.8(a) or Sec. 1005.18(f)(2) for existing customers,
the financial institution must notify consumers with accounts acquired
before April 1, 2019, at least 21 days in advance of the change
becoming effective, provided the financial institution has the
consumer's contact information. If the financial institution obtains
the consumer's contact information fewer than 30 days in advance of the
change becoming effective or after it has become effective, the
financial institution is permitted instead to provide notice of the
change within 30 days of obtaining the consumer's contact information.
If a financial institution has received an E-Sign consent from the
consumer, the financial institution may notify the consumer
electronically. Otherwise, if a financial institution mails or delivers
written communications to the consumer within the applicable time
period, that financial institution must send a notice in physical form.
If the financial institution will not mail or deliver communications to
the consumer within the applicable time period, then the financial
institution may notify the consumer in electronic form without regard
to the consumer
[[Page 59448]]
notice and consent requirements of section 101(c) of the E-Sign Act.
Section 1005.18(h)(2)(ii) requires that financial institutions
notify any consumer, who acquires a prepaid account after the effective
date specified in packaging printed prior to the effective date, of any
changes as a result of Sec. 1005.18(h)(1) taking effect that would
have caused a change-in-terms notice to be required under Sec.
1005.8(a) or Sec. 1005.18(f)(2) for existing customers within 30 days
of acquiring the customer's contact information. In addition, financial
institutions must mail or deliver updated initial disclosures pursuant
to Sec. Sec. 1005.7 and 1005.18(f)(1) within 30 days of obtaining the
consumer's contact information. Those financial institutions that are
affected should not incur significant costs associated with notifying
consumers and providing updated initial disclosures. Consumers who have
consented to electronic communication may receive the notices and
updated disclosures electronically, at a minimal cost to financial
institutions. Those consumers who cannot be contacted electronically
may receive the notices and updated initial disclosures together with
another scheduled mailing within the 30-day time period. Any remaining
consumers who are not scheduled to receive mailings may be notified
without regard to the consumer notice and consent requirements of
section 101(c) of the E-Sign Act.
Section 1005.19(b) requires certain issuers to submit to the CFPB,
on a rolling basis, short form disclosures, prepaid account agreements
(including fee schedules) that are offered, amended, or withdrawn.
Prepaid account issuers are permitted to delay submitting a change in
the list of names of other relevant parties to a particular prepaid
account agreement until the earlier of such time as the issuer is
otherwise submitting an amended agreement or changes to other
identifying information about the issuer and its submitted agreements
to the CFPB, or May 1 of each year (for updates between the last
submission and April 1 of that year). Short form and long form
disclosures may be provided to the CFPB as separate addenda to the
agreement, rather than integrated into the agreement or as a single
addendum.
Regulation Z
The CFPB's rules cover overdraft credit features offered in
connection with prepaid accounts where the credit features are offered
by the prepaid account issuer, its affiliates, or its business partners
with certain exceptions. The CFPB is expanding the exception in 12 CFR
1026.61(a)(4) that allows prepaid account issuers to provide certain
incidental forms of credit structured as a negative balance on the
asset feature of prepaid accounts without triggering Regulation Z and
the other protections for hybrid prepaid-credit cards. Previously, the
exception only applied where (1) the prepaid card could not access
credit from a covered separate credit feature accessible by a hybrid
prepaid-credit card; (2) the prepaid account issuer had a general
policy and practice of declining transactions that will take the
account negative; and (3) the prepaid account issuer customarily did
not charge credit-related fees. Section 1026.61(a)(4), as amended,
permits a prepaid account issuer to take advantage of the exception
with respect to the negative balance even if a covered separate credit
feature offered by a business partner is attached to the prepaid
account, so long as the other requirements are met.
Creditors offering these covered overdraft credit features in
connection with a prepaid account are required to inform consumers of
the costs and terms before consumers use the credit feature and inform
consumers of certain subsequent changes to the terms of the credit
feature. The initial required information includes the finance charge
and other charges, the Annual Percentage Rate (APR), a description of
how balances subject to a finance charge are calculated, and any
collateral used to secure repayment. If the creditor changes certain
terms initially disclosed, or increases the minimum periodic payment, a
written change-in-terms notice generally must be provided to the
consumer at least 45 days prior to the effective date of the change.
Creditors are required to provide a written periodic statement of
activity for each billing cycle. The statement must be provided for
each account that has a balance of more than $1 or on which a finance
charge is imposed, and the statement must include a description of
activity on the account, the opening and closing balances, any finance
charges imposed, and payment information.
Creditors are required to notify consumers about their rights and
responsibilities regarding billing errors and must provide either a
complete statement of billing rights annually or a summary of those
billing rights and responsibilities on each periodic statement. If a
consumer alleges a billing error, the creditor must provide, within 30
days of receipt, an acknowledgment that the creditor received the
consumer's error notice. The creditor must report on the results of its
investigation within 90 days. If a billing error did not occur, the
creditor must provide an explanation as to why the creditor believed an
error did not occur and provide documentary evidence to the consumer
upon request. The creditor must also notify the consumer of the portion
of the disputed amount and related finance or other charges that the
consumer still owed and when payment of those amounts was due.
Persons offering these covered overdraft credit features in
connection with a prepaid account are required when advertising their
products to include certain basic credit information if the
advertisement refers to specified credit terms or costs. Persons
offering these features in connection with a prepaid account are
required to send copies of the overdraft credit feature agreement to
the CFPB. Lastly, persons offering these features in connection with a
prepaid account must provide additional disclosures with solicitations
and applications. Such card issuers must disclose key terms of the
account, such as the APR, information about variable rates, and fees
such as annual fees, minimum finance charges, and transaction fees for
purchases.
Affected Public: Businesses or other for-profit entities.
Burden Estimates:
Regulation E:
Estimated Number of Respondents: 1,106.
Estimated Annual Burden: 6,605 hours.
Regulation Z: The CFPB has indicated that the only respondents
affected by these changes are those that they regulate. Therefore, the
OCC will not be taking any burden for these changes.
Frequency of Response: On occasion.
Comments: On May 20, 2019, the OCC issued a notice for 60 days of
comment concerning the collection, 84 FR 22931. No comments were
received. Comments continue to be invited on:
(a) Whether the collections of information are necessary for the
proper performance of the functions of the OCC, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimates of the information
collection burden;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of the collection on respondents,
including through the use of automated collection techniques or other
forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
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maintenance, and purchase of services to provide information.
Dated: October 25, 2019.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2019-23960 Filed 11-1-19; 8:45 am]
BILLING CODE 4810-33-P