Reg E Changes

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Question:

Can you please inform me about recent changes to Reg E? I had a call from a rep at Bankers Systems about updating my ATM/Visa Checkcard app, which included the Reg E language with some new verbiage. Since I don't use that app any longer, he could only inform me that the beginning of the verbiage that was changed was "If you don't complete a fund transfer...". Any help you can give on this topic is appreciated.

Answer:

Answer by Andy Zavoina:
The two most recent disclosure changes that come to mind are the requirement that you inform the consumer that fees can occur (205.7(b))and the possible inclusion of the types of transfers available since echeck conversion may have to be disclosed. (Section 205.3(a)(b))

Echeck conversions are those items that are generally converted from a paper check at the merchant's register to an ACH onetime debit. The check is marked void and returned to the consumer.

Answer:

Answer by Mary Beth Guard:
The changes to Reg E that Andy notes in his first paragraph become mandatory October 1, 2001. They provide that when the consumer contracts for an electronic fund transfer service, financial institutions are required to provide initial disclosures, including a notice that a fee may be imposed for electronic fund transfers initiated at an ATM operated by another entity. You can access the Federal Register document here.

More information about the changes is included in our article ATM Fee Notices Required.

First published on BankersOnline.com 8/6/01