During a recent Regulation E training event, the class and I discussed the Regulation E Section 1005.11 “Procedures for resolving errors” and there, as always, was very active discussion of what a bank may request, but not require. I brought up the prohibition against requiring police reports as a requirement for the bank to either begin the investigation provision or to provide provisional credit and there were a number of questions. Many banks have in […]
Category: Regulation E
REGULATION E CIVIL MONETARY PENALTIES
Case 1 – In late July an Indiana bank was assessed a $70,000 penalty for engaging in unfair and deceptive acts or practices by the imposition of requirements on consumers in the resolution of electronic transfer errors which were more onerous than those set forth in Regulation E, thereby effectively delaying, denying or discouraging error resolution claims. Case 2 – In mid-July a bank located in Kentucky was assessed a $100,000 penalty for engaging in unfair […]
THE LATEST REMITTANCE RULE CHANGES
On August 7, 2013 the CFPB published final rule that amends a May 22, 2013 Final Rule which along with three other final rules implements the Electronic Fund Transfer Act’s provisions regarding remittance transfers. The August 7, 2013 Final Rule makes a clarificatory amendment and technical correction to the May 22, 2013 Final Rule. First, the rule makes a clarificatory amendment to § 1005.33(c)(2)(iii). That section sets forth the remedies for errors that occur because […]
CFPB PUBLISHES REVISED REMITTANCE RULE
The Consumer Financial Protection Bureau (CFPB) recently published what will hopefully be the final revisions to its remittance rules. The final revised rule will take effect on October 28, 2013. The remittance rules create a comprehensive consumer protection regime for remittance transfers sent by consumers in the United States to individuals and businesses in foreign countries. Under the remittance rule, remittance transfer providers will be required to disclose certain fees and taxes, as well as […]
REGULATION E AMENDMENT ELIMINATES ATM NOTICE
Recently the Bureau of Consumer Financial Protection amended Regulation E, which implements the Electronic Fund Transfer Act (EFTA), and the official interpretation to the regulation. In December 2012, Congress passed and the President signed legislation amending the EFTA to eliminate a requirement that a fee notice be posted on or at automated teller machines, leaving in place the requirement for a specific fee disclosure to appear on the screen of that machine or on paper […]