[Anonymous]

I had always thought that Reg E did not apply to businesses. I was in the process of looking up the definition of consumer in Reg DD TISA, and realized REG E applies to “consumer” accounts; however they define consumer differently than REG DD.

(e) “Consumer” means a natural person.
(j) “Person” means a natural person or an organization, including a corporation, government agency, estate, trust, partnership, proprietorship, cooperative, or association.

Are we not applying Reg E to businesses because of Reg E’s definition of “account”?
(b)(1) “Account” means a demand deposit (checking), savings, or other consumer asset account (other than an occasional or incidental credit balance in a credit plan) held directly or indirectly by a financial institution and established primarily for personal, family, or household purposes.

Topic

[rcooper]

Regulation E does not apply to business accounts. 1005.3(a) tells us that Regulation E “applies to any electronic fund transfer that authorizes a financial institution to debit or credit a consumer’s account“.

1005.2 state:
(b)(1) “Account” means a demand deposit (checking), savings, or other consumer asset account (other than an occasional or incidental credit balance in a credit plan) held directly or indirectly by a financial institution and established primarily for personal, family, or household purposes.

(e) “Consumer” means a natural person.

This tells us that it will apply to a natural person’s (actual human) account (for personal, family, or household purposes).

You referred to the definition of “person”. This is different than the term natural person used in the definition of “consumer”. The definition of “person” may pop up when someone other than the consumer. For example, the Scope under 1005.1 states:

This part carries out the purposes of the Electronic Fund Transfer Act, which establishes the basic rights, liabilities, and responsibilities of consumers who use electronic fund transfer and remittance transfer services and of financial institutions or other persons that offer these services. The primary objective of the act and this part is the protection of individual consumers engaging in electronic fund transfers and remittance transfers.

You see here that consumer and person are not the same and person means the definition you cited above.

I hope this makes sense and helps!

[Author]

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