12 C.F.R. 12 CFR--PART 205
Title 12 - Banks and Banking
Effective Date(s): July 1, 2007 3. In part 205 new §205.18 is added as follows: (a) Coverage. A person is a financial institution for purposes of the act and this part if it directly or indirectly holds a payroll card account as described in §205.2(b)(2) or directly or indirectly issues an access device to a consumer for use in initiating an EFT from a payroll card account. The person shall comply with all applicable requirements of the act and this part with respect to payroll card accounts except as provided in this section. (b) Alternative to periodic statement. (1) A financial institution need not furnish a periodic statement required by section 205.9(b) if the institution makes available to the consumer: (i) The consumer's account balance, through a readily available telephone line; (ii) An electronic history, such as through an Internet Web site, of the consumer's account transactions that covers at least 60 days preceding the date the consumer electronically accesses the account; and (iii) A written history of the consumer's account transactions that is provided promptly in response to an oral or written request and that covers at least 60 days preceding the date of receipt of a request by the consumer. (2) The history of account transactions provided under paragraphs (b)(1)(ii) and (iii) of this section must include the information set forth in section 205.9(b). (c) Modified requirements. A financial institution that provides information under paragraph (b) of this section, shall comply with the following: (1) Initial disclosures. The financial institution shall modify the disclosures under section 205.7(b) by disclosing: (i) Account information. A telephone number that the consumer may call to obtain the account balance, the means by which the consumer can obtain an electronic account history, such as the address of an Internet Web site, and a summary of the consumer's right to receive a written account history upon request (in place of the summary of the right to receive a periodic statement required by section 205.7(b)(6)), including a telephone number to call to request a history. The disclosure required by this paragraph (c)(1)(i) may be made by providing a notice substantially similar to the notice contained in section A–7 in appendix A of this part. (ii) Error resolution. A notice concerning error resolution that is substantially similar to the notice contained in section A–7 in appendix A of this part, in place of the notice required by section 205.7(b)(10). (2) Annual error resolution notice. The financial institution shall provide an annual notice concerning error resolution that is substantially similar to the notice contained in section A–7 in appendix A of this part, in place of the notice required by section 205.8(b). (3) Limitations on liability. For purposes of section 205.6(b)(3), the 60-day period for reporting any unauthorized transfer that appears on a periodic statement shall begin on the earlier of: (i) The date the consumer electronically accesses the consumer's account under paragraph (b)(1)(ii) of this section, provided that the information about the transfer was made available to the consumer at that time; or (ii) The date the financial institution sends a written history of the consumer's account transactions requested by the consumer under paragraph (b)(1)(iii) of this section in which the unauthorized transfer is first reflected. (4) Error resolution. The financial institution shall comply with the requirements of section 205.11 in response to an oral or written notice of an error from the consumer that is received no later than 60 days after the earlier of: (i) The date the consumer electronically accesses the consumer's account under paragraph (b)(1)(ii) of this section, provided that information about the transfer that gives rise to the alleged error was made available to the consumer at that time; or (ii) The date the financial institution sends a written history of the consumer's account transactions requested by the consumer under paragraph (b)(1)(iii) of this section in which the error is first reflected.
Amendment from January 10, 2006
12 CFR--PART 205
Amendment(s) published January 10, 2006, in 71 FR 1481
§ 205.18 Requirements for Financial Institutions Offering Payroll Card Accounts
