§4008 Regulations and Reports by Board

Summary

The Board of Governors of the Federal Reserve, working with the Director of the Consumer Financial Protection Bureau, must write rules after giving public notice and a chance to comment. The rules will make the chapter work, stop people from dodging it, and help banks follow it. The Board must also consider rules to improve check processing. That includes things like charging banks when they are told a check will be presented, allowing check truncation, giving incentives and automation to return unpaid items quickly, standardizing where endorsements go and automating their reading, requiring a paying bank to decide within one business day (for checks over a minimum amount the Board sets) and notify the receiving bank if it will not pay, letting returned checks move through the Federal Reserve, helping create an electronic clearinghouse if feasible, and allowing originating banks to return unpaid checks and get reimbursement directly. The Board has broad power to regulate any part of the check payment system and must write rules it finds appropriate. The Board and the CFPB must consult the Comptroller of the Currency, the FDIC Board, and the NCUA Board when making these rules. The Board must send reports to Congress at 18, 30, and 48 months after August 10, 1987 about implementation and effects. It must also report within 2 years after August 10, 1987 on the temporary schedule in section 4002(c) and on the likely effects of the schedule in section 4002(b), including estimated risks and losses to banks and benefits to consumers and any recommendations. The Comptroller General must report to Congress within 6 months after September 1, 1988. The Board must study an electronic clearinghouse and report its conclusions to Congress within 9 months of August 10, 1987.