[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC1693b]
TITLE 15--COMMERCE AND TRADE
CHAPTER 41--CONSUMER CREDIT PROTECTION
SUBCHAPTER VI--ELECTRONIC FUND TRANSFERS
Sec. 1693b. Regulations
(a) Prescription by Board
The Board shall prescribe regulations to carry out the purposes of
this subchapter. In prescribing such regulations, the Board shall:
(1) consult with the other agencies referred to in section 1693o
of this title and take into account, and allow for, the continuing
evolution of electronic banking services and the technology utilized
in such services,
(2) prepare an analysis of economic impact which considers the
costs and benefits to financial institutions, consumers, and other
users of electronic fund transfers, including the extent to which
additional documentation, reports, records, or other paper work
would be required, and the effects upon competition in the provision
of electronic banking services among large and small financial
institutions and the availability of such services to different
classes of consumers, particularly low income consumers,
(3) to the extent practicable, the Board shall demonstrate that
the consumer protections of the proposed regulations outweigh the
compliance costs imposed upon consumers and financial institutions,
and
(4) any proposed regulations and accompanying analyses shall be
sent promptly to Congress by the Board.
(b) Issuance of model clauses
The Board shall issue model clauses for optional use by financial
institutions to facilitate compliance with the disclosure requirements
of section 1693c of this title and to aid consumers in understanding the
rights and responsibilities of participants in electronic fund transfers
by utilizing readily understandable language. Such model clauses shall
be adopted after notice duly given in the Federal Register and
opportunity for public comment in accordance with section 553 of title
5. With respect to the disclosures required by section 1693c(a)(3) and
(4) of this title, the Board shall take account of variations in the
services and charges under different electronic fund transfer systems
and, as appropriate, shall issue alternative model clauses for
disclosure of these differing account terms.
(c) Criteria; modification of requirements
Regulations prescribed hereunder may contain such classifications,
differentiations, or other provisions, and may provide for such
adjustments and exceptions for any class of electronic fund transfers,
as in the judgment of the Board are necessary or proper to effectuate
the purposes of this subchapter, to prevent circumvention or evasion
thereof, or to facilitate compliance therewith. The Board shall by
regulation modify the requirements imposed by this subchapter on small
financial institutions if the Board determines that such modifications
are necessary to alleviate any undue compliance burden on small
financial institutions and such modifications are consistent with the
purpose and objective of this subchapter.
(d) Applicability to service providers other than certain financial
institutions
(1) In general
If electronic fund transfer services are made available to
consumers by a person other than a financial institution holding a
consumer's account, the Board shall by regulation assure that the
disclosures, protections, responsibilities, and remedies created by
this subchapter are made applicable to such persons and services.
(2) State and local government electronic benefit transfer
systems
(A) ``Electronic benefit transfer system'' defined
In this paragraph, the term ``electronic benefit transfer
system''--
(i) means a system under which a government agency
distributes needs-tested benefits by establishing accounts
that may be accessed by recipients electronically, such as
through automated teller machines or point-of-sale
terminals; and
(ii) does not include employment-related payments,
including salaries and pension, retirement, or unemployment
benefits established by a Federal, State, or local
government agency.
(B) Exemption generally
The disclosures, protections, responsibilities, and remedies
established under this subchapter, and any regulation prescribed
or order issued by the Board in accordance with this subchapter,
shall not apply to any electronic benefit transfer system
established under State or local law or administered by a State
or local government.
(C) Exception for direct deposit into recipient's account
Subparagraph (B) shall not apply with respect to any
electronic funds transfer under an electronic benefit transfer
system for a deposit directly into a consumer account held by
the recipient of the benefit.
(D) Rule of construction
No provision of this paragraph--
(i) affects or alters the protections otherwise
applicable with respect to benefits established by any other
provision \1\ Federal, State, or local law; or
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\1\ So in original. Probably should be followed by ``of''.
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(ii) otherwise supersedes the application of any State
or local law.
(3) Fee disclosures at automated teller machines
(A) In general
The regulations prescribed under paragraph (1) shall require
any automated teller machine operator who imposes a fee on any
consumer for providing host transfer services to such consumer
to provide notice in accordance with subparagraph (B) to the
consumer (at the time the service is provided) of--
(i) the fact that a fee is imposed by such operator for
providing the service; and
(ii) the amount of any such fee.
(B) Notice requirements
(i) On the machine
The notice required under clause (i) of subparagraph (A)
with respect to any fee described in such subparagraph shall
be posted in a prominent and conspicuous location on or at
the automated teller machine at which the electronic fund
transfer is initiated by the consumer.
(ii) On the screen
The notice required under clauses (i) and (ii) of
subparagraph (A) with respect to any fee described in such
subparagraph shall appear on the screen of the automated
teller machine, or on a paper notice issued from such
machine, after the transaction is initiated and before the
consumer is irrevocably committed to completing the
transaction, except that during the period beginning on
November 12, 1999, and ending on December 31, 2004, this
clause shall not apply to any automated teller machine that
lacks the technical capability to disclose the notice on the
screen or to issue a paper notice after the transaction is
initiated and before the consumer is irrevocably committed
to completing the transaction.
(C) Prohibition on fees not properly disclosed and explicitly
assumed by consumer
No fee may be imposed by any automated teller machine
operator in connection with any electronic fund transfer
initiated by a consumer for which a notice is required under
subparagraph (A), unless--
(i) the consumer receives such notice in accordance with
subparagraph (B); and
(ii) the consumer elects to continue in the manner
necessary to effect the transaction after receiving such
notice.
(D) Definitions
For purposes of this paragraph, the following definitions
shall apply:
(i) Automated teller machine operator
The term ``automated teller machine operator'' means any
person who--
(I) operates an automated teller machine at which
consumers initiate electronic fund transfers; and
(II) is not the financial institution that holds the
account of such consumer from which the transfer is
made.
(ii) Electronic fund transfer
The term ``electronic fund transfer'' includes a
transaction that involves a balance inquiry initiated by a
consumer in the same manner as an electronic fund transfer,
whether or not the consumer initiates a transfer of funds in
the course of the transaction.
(iii) Host transfer services
The term ``host transfer services'' means any electronic
fund transfer made by an automated teller machine operator
in connection with a transaction initiated by a consumer at
an automated teller machine operated by such operator.
(Pub. L. 90-321, title IX, Sec. 904, as added Pub. L. 95-630, title XX,
Sec. 2001, Nov. 10, 1978, 92 Stat. 3730; amended Pub. L. 104-193, title
VIII, Sec. 891, title IX, Sec. 907, Aug. 22, 1996, 110 Stat. 2346, 2350;
Pub. L. 106-102, title VII, Sec. 702, Nov. 12, 1999, 113 Stat. 1463.)
Amendments
1999--Subsec. (d)(3). Pub. L. 106-102 added par. (3).
1996--Subsec. (d). Pub. L. 104-193, Sec. 907, which directed the
amendment of subsec. (d), was not executed because similar amendment by
Pub. L. 104-193, Sec. 891. See below. Section 907 of Pub. L. 104-193
provided that subsec. (d) was to be amended by inserting subsec. (d)
heading, by designating existing provisions as par. (1) and inserting
heading, and by adding a new par. (2) reading as follows:
``(2) State and local government electronic benefit transfer
programs.--
``(A) Exemption generally.--The disclosures, protections,
responsibilities, and remedies established under this subchapter,
and any regulation prescribed or order issued by the Board in
accordance with this subchapter, shall not apply to any electronic
benefit transfer program established under State or local law or
administered by a State or local government.
``(B) Exception for direct deposit into recipient's account.--
Subparagraph (A) shall not apply with respect to any electronic
funds transfer under an electronic benefit transfer program for
deposits directly into a consumer account held by the recipient of
the benefit.
``(C) Rule of construction.--No provision of this paragraph may
be construed as--
``(i) affecting or altering the protections otherwise
applicable with respect to benefits established by Federal,
State, or local law; or
``(ii) otherwise superseding the application of any State or
local law.
``(D) Electronic benefit transfer program defined.--For purposes
of this paragraph, the term `electronic benefit transfer program'--
``(i) means a program under which a government agency
distributes needs-tested benefits by establishing accounts to be
accessed by recipients electronically, such as through automated
teller machines, or point-of-sale terminals; and
``(ii) does not include employment-related payments,
including salaries and
