Thread Options
#792776 - 08/10/07 04:59 PM New Reg E rule
kira Offline
100 Club
Joined: Jul 2006
Posts: 219
Has anyone seen an update to reg E regarding issuing receipts on transactions under $15?

Return to Top
Deposits and Payments
#792803 - 08/10/07 05:23 PM Re: New Reg E rule kira
RVFlyboy Offline
Power Poster
RVFlyboy
Joined: Oct 2000
Posts: 5,919
Soaring over Georgia
Final rule was published in the Federal Register on July 5, 2007 effective August 6, 2007. Copy of final rule available here: http://www.bankersonline.com/topstory/72fedreg/72fr36589.pdf
_________________________
Jim Bedsole, CRCM, CBA, CFSA, CAFP
My posts - my opinions

Return to Top
#792850 - 08/10/07 06:04 PM Re: New Reg E rule RVFlyboy
kira Offline
100 Club
Joined: Jul 2006
Posts: 219
Thanks my ops people didn't pick that one up

Return to Top
#794454 - 08/14/07 07:22 PM Re: New Reg E rule kira
jef8111 Offline
Member
Joined: Jul 2004
Posts: 96
Can anyone tell me if they plan on notifying their existing customers of this change by sending out addendums or statement stuffers?
I just received a call from Wolters Kluwer pressing me to place two orders.
1. Notify existing customers using a statement stuffer
2. Include an addendum in our Terms & Conditions to update our existing Reg E language.
Are other financial institutions doing this?

Return to Top
#794460 - 08/14/07 07:27 PM Re: New Reg E rule jef8111
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,333
Cape Cod
While I agree that you should update your account disclosures so that all new customers are informed they might not get a receipt for transfers of $15 or less, you can notify existing customers with a simple statement message. Why spend money for a printed stuffer?
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#795019 - 08/15/07 01:51 PM Re: New Reg E rule John Burnett
LoisLane Offline
Diamond Poster
LoisLane
Joined: Oct 2001
Posts: 1,570
Wisteria Lane..
John, Happy Birthday today. May all your dreams come true.
_________________________
And where is Superman when I need him?

Return to Top
#795020 - 08/15/07 01:52 PM Re: New Reg E rule LoisLane
MadisonCali Offline
Power Poster
Joined: Jun 2006
Posts: 2,515
I put a note on our monthly statements, and also a note on our internet banking website...
_________________________
The beatings will continue until morale improves...

Return to Top
#795632 - 08/15/07 07:59 PM Re: New Reg E rule John Burnett
complygirl Offline
Platinum Poster
Joined: Oct 2004
Posts: 822
midwest
So are we required to notify existing customers of this change or is it just "highly recommended"?

We do not plan on changing our ATM receipt procedures at our bank owned ATMs (we will continue to provide a receipt on all transactions), because of this our head of operations doesn't see the reasoning behind us notifying existing customers of this change. Any information on this would be appreciated.

Return to Top
#796331 - 08/16/07 04:56 PM Re: New Reg E rule complygirl
Rangers Fan Offline
Gold Star
Rangers Fan
Joined: Dec 2001
Posts: 345
We received the same sales call from Walters Kluwer too and I think we will also pass on that expense item and do the statement message/online banking notice. I am not seeing model language for this part of the initial disclosure that we would be required to change? I agree about the customer service issue though.

Return to Top
#800961 - 08/23/07 01:57 PM Re: New Reg E rule Rangers Fan
HR Banker Offline
Diamond Poster
Joined: Oct 2002
Posts: 1,026
I'm with complygirl. If we continue to provide receipts on all ATM transactions what would we have to notify customers about? Can we keep things as they are now and continue to provide all receipts???

Return to Top
#800971 - 08/23/07 02:05 PM Re: New Reg E rule HR Banker
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,333
Cape Cod
I posted this OPINION in one of the private forums, so I'll copy it here, rather than simply link to it.

Quote:
OK. Here's my take on the receipts disclosure.

The language that most issuers use in their "initial disclosures" under 205.7(b)(6) is lifted directly from the model disclosures in Appendix A to Regulation E (A-2(g), specifically). I don't agree that the model language accomplishes what it's supposed to cover. The regulation requirement is that this disclosure provide "A summary of the consumer's right to receipts and periodic statements, as provided in Sec. 205.9, and notices regarding preauthorized transfers as provided in Secs. 205.10(a), and 205.10(d)." That right includes receipts at all ATMs and POS terminals that can be accessed with the card, not only those operated by the card issuer.

The model language has apparently been enough to satisfy examiners, auditors, et al for years. Now there is an amendment that creates an exception. Why the Fed didn't send out a change to the model language is anyone's guess, but I won't presume to say that it's because the Fed Staff doesn't think issuers need to update their disclosures. There's no mention of 205.7(b)(6) disclosures in the Fed's Federal Register publication of the amendment, so we don't know if Fed Staff even considered the question.

Remember -- use of the model language only covers you if it reflects your actual practices.

What's the purpose of disclosures? One view is that the purpose is to keep the bank out of trouble. Another view, and the one I espouse, is that disclosures are made to inform consumers. For that reason, I believe that the bank has a duty to make its disclosures informative (but within the limits of the regulations). That, in my view, includes telling consumers they may not get a receipt at some terminals for transactions of $15 or less.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#800987 - 08/23/07 02:17 PM Re: New Reg E rule John Burnett
HR Banker Offline
Diamond Poster
Joined: Oct 2002
Posts: 1,026
So even if we will continue to give receipts on all transactions are you saying we still need to inform the customer so that when they use their debit card at Walmart and don't get a receipt they will understand why?

Return to Top
#801057 - 08/23/07 03:02 PM Re: New Reg E rule HR Banker
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,333
Cape Cod
That is my OPINION.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#801194 - 08/23/07 04:55 PM Re: New Reg E rule HR Banker
ahou Offline
Power Poster
ahou
Joined: Aug 2002
Posts: 3,094
I'm thinking about changing our disclosure to include words in blue:

Generally,a receipt will be provided to you at the time you make any transfers to or from your account using your card. Federal law does not require a receipt for transactions $15 or less.
_________________________
Opinions are my own and not of my employer.

Return to Top
#801342 - 08/23/07 05:56 PM Re: New Reg E rule ahou
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,353
On the Net
Here is my recommendation from the same thread John is referring to.

"You can get a receipt at the time you make any transfer greater greater than $15 to or from your account using one of our [automated teller machines] [or] [point-of-sale terminals]."

The bold text is my addition to the model language. I try to do as little modification to that safe harbor friend as possible.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top
#801416 - 08/23/07 06:36 PM Re: New Reg E rule Andy_Z
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,333
Cape Cod
I agree with Andy about making minimal deviations from the model disclosures. In this case, however, to more accurately state the customer's right, I'd alter it ever so slightly and make the statement read:

"You can get a receipt at the time you make any transfer greater greater than $15 to or from your account using a[n] [automated teller machine] [or] [point-of-sale terminal]."

My change assumes your bank participates in one or more networks.
Last edited by John Burnett; 08/23/07 06:37 PM.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#801481 - 08/23/07 07:22 PM Re: New Reg E rule John Burnett
bcastle Offline
100 Club
Joined: Nov 2003
Posts: 181
Springfield, Illinois (Souther...
I am notifying all employees of the change so they will be prepared to answer any customer comments or concerns, putting notice on our website and have gotten wolters kluwer to make the changes to our AIB and Card-Bro disclosures on Platform.
_________________________
bcastle CRCM

Return to Top
#805883 - 08/30/07 03:02 PM Re: New Reg E rule bcastle
susie spongehead Offline
100 Club
susie spongehead
Joined: May 2006
Posts: 111
In my imagination
We still plan to give receipts at our ATMs for all transactions. Because of this we were not sure if we wanted to go the expense of updating our EFT disclosure. Especially since we recently revised our debit card agreement to include the EFT disclosure... we use give two seperate forms.

Anyway I happen to live in a city that has a FRB Branch so I contacted a examiner there. The examiner's response is below:

Quote:
Hi ......,

You would think that when the powers that be enacted this change to the regulation they would come up with some model language. However, the model language in Appendix A-2 (g) notes that "You can get a receipt at the time you make any transfer to or from your account using one of our" ATMs or POS terminals. Since the bank is going to continue to provide the ATM receipt for withdrawals regardless of the dollar amount, I would say that the bank would not need to change their disclosures.
Quote:


I think it is a good idea to notify customers of the change by posting a notice on our website and in our lobby. We will look at changing the EFT disclosure next year when we update our disclosures.
_________________________
"If the shoe fits, it's too expensive" Adrienne Gusoff


CRCM

Return to Top
#816345 - 09/17/07 02:53 PM Re: New Reg E rule complygirl
travelgirl Offline
100 Club
Joined: Mar 2004
Posts: 223
Minnesota
While various posters are "recommending" or "suggesting" we notify our existing customers (through a statement message) are we required to under the law?

I have also notified our branch staff in the event they receive customer questions, but would like to put this to bed without notifying our exising customers, if possible. We currently have other statement messages running.

I have already updated my Terms and Conditions disclosure for new accounts going forward to state something like "you may not receive a receipt if your transaction is $15 or less."

Is a notice to existing customers required????

Return to Top
#816782 - 09/17/07 09:09 PM Re: New Reg E rule travelgirl
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
No. Check out our September e-newsletter (it's free!) for more info. http://www.bankerscompliance.com/compliance-resources/newsletters_.htm
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#817016 - 09/18/07 02:32 PM Re: New Reg E rule David Dickinson
travelgirl Offline
100 Club
Joined: Mar 2004
Posts: 223
Minnesota
Thanks for the response David and for the newsletter lead. I'm all signed up!

Return to Top

Moderator:  John Burnett