15 U.S.C. § 1693b : US Code - Section 1693B: Regulations

Search 15 U.S.C. § 1693b : US Code - Section 1693B: Regulations

(a) Prescription by Board
The Board shall prescribe regulations to carry out the purposes
of this subchapter. In prescribing such regulations, the Board
shall:
(1) consult with the other agencies referred to in section
1693o of this title and take into account, and allow for, the
continuing evolution of electronic banking services and the
technology utilized in such services,
(2) prepare an analysis of economic impact which considers the
costs and benefits to financial institutions, consumers, and
other users of electronic fund transfers, including the extent to
which additional documentation, reports, records, or other paper
work would be required, and the effects upon competition in the
provision of electronic banking services among large and small
financial institutions and the availability of such services to
different classes of consumers, particularly low income
consumers,
(3) to the extent practicable, the Board shall demonstrate that
the consumer protections of the proposed regulations outweigh the
compliance costs imposed upon consumers and financial
institutions, and
(4) any proposed regulations and accompanying analyses shall be
sent promptly to Congress by the Board.
(b) Issuance of model clauses
The Board shall issue model clauses for optional use by financial
institutions to facilitate compliance with the disclosure
requirements of section 1693c of this title and to aid consumers in
understanding the rights and responsibilities of participants in
electronic fund transfers by utilizing readily understandable
language. Such model clauses shall be adopted after notice duly
given in the Federal Register and opportunity for public comment in
accordance with section 553 of title 5. With respect to the
disclosures required by section 1693c(a)(3) and (4) of this title,
the Board shall take account of variations in the services and
charges under different electronic fund transfer systems and, as
appropriate, shall issue alternative model clauses for disclosure
of these differing account terms.
(c) Criteria; modification of requirements
Regulations prescribed hereunder may contain such
classifications, differentiations, or other provisions, and may
provide for such adjustments and exceptions for any class of
electronic fund transfers, as in the judgment of the Board are
necessary or proper to effectuate the purposes of this subchapter,
to prevent circumvention or evasion thereof, or to facilitate
compliance therewith. The Board shall by regulation modify the
requirements imposed by this subchapter on small financial
institutions if the Board determines that such modifications are
necessary to alleviate any undue compliance burden on small
financial institutions and such modifications are consistent with
the purpose and objective of this subchapter.
(d) Applicability to service providers other than certain financial
institutions
(1) In general
If 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 this subchapter are made applicable to such persons
and services.
(2) State and local government electronic benefit transfer
systems
(A) "Electronic benefit transfer system" defined
In this paragraph, the term "electronic benefit transfer
system" -
(i) means a system under which a government agency
distributes needs-tested benefits by establishing accounts
that may be accessed by recipients electronically, such as
through automated teller machines or point-of-sale terminals;
and
(ii) does not include employment-related payments,
including salaries and pension, retirement, or unemployment
benefits established by a Federal, State, or local government
agency.
(B) Exemption generally
The disclosures, protections, responsibilities, and remedies
established under this subchapter, and any regulation
prescribed or order issued by the Board in accordance with this
subchapter, shall not apply to any electronic benefit transfer
system established under State or local law or administered by
a State or local government.
(C) Exception for direct deposit into recipient's account
Subparagraph (B) shall not apply with respect to any
electronic funds transfer under an electronic benefit transfer
system for a deposit directly into a consumer account held by
the recipient of the benefit.
(D) Rule of construction
No provision of this paragraph -
(i) affects or alters the protections otherwise applicable
with respect to benefits established by any other provision
(!1) Federal, State, or local law; or
(ii) otherwise supersedes the application of any State or
local law.
(3) Fee disclosures at automated teller machines
(A) In general
The regulations prescribed under paragraph (1) shall require
any automated teller machine operator who imposes a fee on any
consumer for providing host transfer services to such consumer
to provide notice in accordance with subparagraph (B) to the
consumer (at the time the service is provided) of -
(i) the fact that a fee is imposed by such operator for
providing the service; and
(ii) the amount of any such fee.
(B) Notice requirements
(i) On the machine
The notice required under clause (i) of subparagraph (A)
with respect to any fee described in such subparagraph shall
be posted in a prominent and conspicuous location on or at
the automated teller machine at which the electronic fund
transfer is initiated by the consumer.
(ii) On the screen
The notice required under clauses (i) and (ii) of
subparagraph (A) with respect to any fee described in such
subparagraph shall appear on the screen of the automated
teller machine, or on a paper notice issued from such
machine, after the transaction is initiated and before the
consumer is irrevocably committed to completing the
transaction, except that during the period beginning on
November 12, 1999, and ending on December 31, 2004, this
clause shall not apply to any automated teller machine that
lacks the technical capability to disclose the notice on the
screen or to issue a paper notice after the transaction is
initiated and before the consumer is irrevocably committed to
completing the transaction.
(C) Prohibition on fees not properly disclosed and explicitly
assumed by consumer
No fee may be imposed by any automated teller machine
operator in connection with any electronic fund transfer
initiated by a consumer for which a notice is required under
subparagraph (A), unless -
(i) the consumer receives such notice in accordance with
subparagraph (B); and
(ii) the consumer elects to continue in the manner
necessary to effect the transaction after receiving such
notice.
(D) Definitions
For purposes of this paragraph, the following definitions
shall apply:
(i) Automated teller machine operator
The term "automated teller machine operator" means any
person who -
(I) operates an automated teller machine at which
consumers initiate electronic fund transfers; and
(II) is not the financial institution that holds the
account of such consumer from which the transfer is made.
(ii) Electronic fund transfer
The term "electronic fund transfer" includes a transaction
that involves a balance inquiry initiated by a consumer in
the same manner as an electronic fund transfer, whether or
not the consumer initiates a transfer of funds in the course
of the transaction.
(iii) Host transfer services
The term "host transfer services" means any electronic fund
transfer made by an automated teller machine operator in
connection with a transaction initiated by a consumer at an
automated teller machine operated by such operator.