Waiving Reg E Disclosures

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Question:

We have customers who initiate the same Reg E wires, for the same amount, to the same country, each month. The required disclosures are read to the customer each time. Can this disclosure requirement be waived if the customer sets up the wire as a Standing Order or sets up the wire to be an STO?

Answer:

If these are consumer-purpose transfers from a consumer account, emanating from a U.S. account and received by a person or business or credited to an account outside of the U.S., they are Remittance Transfer subject to Subpart B of Regulation E.

If the consumer makes individual requests for these transfers, rather than a request for a recurring remittance transfer, you cannot avoid complying with the § 1005.31 disclosure requirements for each individual transfer (prepayment disclosure, receipt, or a combination disclosure when permitted by § 1005.31(b)(3).

If the consumer requests a series of preauthorized remittance transfers, the disclosure requirements are modified by § 1005.36. Specifically, subsection 1005.36(d) has specific requirements.

And no, the consumer cannot waive the disclosure requirements.