§1693b Regulations

Summary

The Bureau must write rules to carry out this part of the law. The Board alone writes rules for persons described in section 5519(a) of title 12 and for carrying out section 1693o–2. When the Board writes rules it must talk with other agencies, consider how electronic banking and technology are changing, prepare an economic impact analysis that looks at costs and benefits to banks, consumers, and other users (including paperwork, competition, and effects on low‑income people), show as much as possible that consumer protections are worth the compliance costs, and send proposed rules and their analyses promptly to Congress. The Bureau must create plain‑language model disclosure clauses to help banks meet the requirements of section 1693c and to help consumers understand electronic transfers; those model clauses must be adopted after notice and public comment under section 553 of title 5, and the Bureau should offer alternate clauses when account terms and fees vary. Rules may include different classes, exceptions, or adjustments for types of transfers or remittance transfers and the Bureau must ease requirements for small financial institutions if needed to avoid undue burden while still meeting the law’s goals. If someone other than the consumer’s account bank offers electronic transfer services, the Bureau must make sure the same disclosures, protections, duties, and remedies apply to them. “Electronic benefit transfer system” — a government system that gives need‑based benefits through accounts accessed electronically (like ATMs or point‑of‑sale); it does not include employment‑related payments such as salaries, pensions, or unemployment. State or local EBT systems are generally not covered by this subchapter unless the benefit is deposited directly into the recipient’s personal account. ATM operators who charge a fee for host transfer services (and are not the consumer’s account bank) must give a screen or paper notice after the transaction starts and before the consumer is committed, telling the consumer that a fee applies and showing the amount; the fee may only be charged if the consumer sees that notice and chooses to continue. “Automated teller machine operator” means a person who runs an ATM but is not the bank holding the consumer’s account. “Electronic fund transfer” includes transactions and balance inquiries. “Host transfer services” means transfers an ATM operator makes for a consumer’s ATM transaction. Nothing here changes the deference courts give the Bureau or the Board when they interpret rules they are authorized to make.