BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.  20551

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

CA 08-7

August 26, 2008

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS:

SUBJECT: Updated Interagency Examination Procedures for Regulation E

The FFIEC Task Force on Consumer Compliance recently approved the attached examination procedures for Regulation E (Electronic Fund Transfers). The updated procedures incorporate all amendments to Regulation E (and the Federal Reserve's Official Staff Commentary) since the prior version was released in 1998. Among other changes, the procedures incorporate the following:

2001 changes:

• Revision to the Official Staff Commentary providing guidance on electronic check conversion transactions, electronic authorizations permitting recurring debits from a consumer's account, and other issues. (66 FR 15187)

2006 changes:

• Clarification of the responsibilities of parties involved in electronic check conversion transactions and a requirement that consumers receive written notification in advance of these transactions. (71 FR 1638)
• Additional revisions to the Official Staff Commentary to provide guidance on preauthorized transfers from consumers' accounts, error resolution, and disclosures at automated teller machines. (71 FR 1638)
• A provision allowing financial institutions to provide an alternative to periodic statements for payroll card accounts (now covered by the regulation) if the institutions make account information available to consumers by telephone, electronically, and, upon the consumer's request, in writing. (71 FR 51437)

2007 changes:

• An exception from the requirement to provide electronic terminal receipts for transactions of $15 or less. (72 FR 36589)
• Withdrawal of portions of interim final rules for electronic disclosures and the retention of provisions allowing electronic disclosures subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act). (72 FR 63452)

If you have any questions, please contact Cynthia Curry-Daniel, Supervisory Consumer Financial Services Analyst, at (202) 452-2677 or Paul Robin, Manager, Oversight and Policy, at (202) 452-3140.

Sincerely,
(signed)

Sandra F. Braunstein
Director
Division of Consumer and Community Affairs

Attachment

Supercedes: CA 98-2 (February 17, 1998)