Reg E Press Release

FRB: Press Release--Approval of final rule covering payroll card accounts u... and a request for public comment on an interim final rule--August 24, 2006

Release Date: August 24, 2006
For immediate release
The Federal Reserve Board on Thursday announced its approval of a final rule to provide that payroll
card accounts are covered by the Board's consumer protection regulation governing electronic fund
transfers.
The final rule grants flexibility to financial institutions that must provide account transaction information
to payroll card users. Under the rule, institutions are not required to provide paper periodic statements to
consumers if the institution makes account transaction information available by telephone, electronically,
and, upon the consumer's request, in writing.
The amendments to address payroll card accounts are being made to Regulation E, which implements the
Electronic Fund Transfer Act, and to the official staff commentary, which interprets the requirements of
Regulation E. The effective date is July 1, 2007.
In a separate action, the Board requested public comment on an interim final rule to provide additional
clarification regarding Regulation E's coverage of the electronic collection of insufficient funds fees by
merchants and other payees and consumer notice requirements for electronic check conversion
transactions. The effective date for the interim final rule is January 1, 2007, consistent with a previously
issued January 2006 final rule; however, certain provisions regarding the fee disclosures will have a
delayed compliance date of January 1, 2008. The Board requests comment on the interim final rule
within thirty days after publication in the Federal Register, which is expected shortly.
The Federal Register notices are attached.
Final rule (141 KB PDF)
Interim final rule (81 KB PDF)
2006 Banking and consumer regulatory policy

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