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#695704 - 03/02/07 05:28 PM TRUST ACCOUNTS & REG E
LSmith Offline
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LSmith
Joined: Dec 2002
Posts: 703
I recently read a Q&A from Bankers Online Learning Connect that says," Q. If your customer has his or her debit card stolen on a Health Savings Account does Regulation E apply?"

"A No, Health Savings Accounts are trust accounts and are not subject to Regulation E. However, you should be careful not to put Reg E disclosures on HSA statements or to give them at account opening, because that might give customers the opposite impression

If we issue a Debit Card on an HSA and there is a dispute, does this mean the bank is not responsible to give the money back to the customer if it is not received from the merchant? Does this mean that we should NOT be giving the REG E disclosure at account opening even if the account is styled John Doe, Health Savings Account and loaded as a trust?

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#696123 - 03/04/07 04:24 PM Re: TRUST ACCOUNTS & REG E LSmith
rlcarey Offline
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rlcarey
Joined: Jul 2001
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Galveston, TX
IMHO - you should not be giving them the Reg E disclosures. However, you will want to provide disclosures describing any protections, rights, and responsibilities offered through the card issuer (i.e. VISA, MC, etc). Whether you have to give any money back will be solely determined by your issuing agreement with the card issuer.
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#854037 - 11/14/07 03:29 PM Re: TRUST ACCOUNTS & REG E LSmith
susie spongehead Offline
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susie spongehead
Joined: May 2006
Posts: 111
In my imagination
Quote:
I recently read a Q&A from Bankers Online Learning Connect that says," Q. If your customer has his or her debit card stolen on a Health Savings Account does Regulation E apply?"

"A No, Health Savings Accounts are trust accounts and are not subject to Regulation E. However, you should be careful not to put Reg E disclosures on HSA statements or to give them at account opening, because that might give customers the opposite impression
Quote:


Since HSAs are exempt from Reg E wouldn't they also be exempt from the Reg E statement requirements?
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