Pursuant to 5
CFR 1320.11(c), OMB files this comment on this information
collection request (ICR. The agency shall examine public comment in
response to the NPRM and will describe in the supporting statement
of its next collection any public comments received regarding the
collection as well as why (or why it did not) incorporate the
commenter’s recommendation. The next submission to OMB must include
the draft final rule.
Inventory as of this Action
Requested
Previously Approved
36 Months From Approved
0
0
0
0
0
0
0
0
0
The Bureau is proposing to amend
Regulation E, which implements the Electronic Fund Transfer Act
(EFTA); Regulation Z, which implements the Truth in Lending Act
(TILA); and the official interpretation to the regulations. The
proposal would create comprehensive consumer protection for prepaid
financial products. It would expressly bring such products under
the ambit of Regulation E as prepaid accounts and create new
provisions specific to these accounts. The proposal would also
include in Regulation E those prepaid accounts that share key
characteristics, including cards, codes, or other devices capable
of being loaded with funds and usable at a wide variety of
unaffiliated merchants or for person-to-person transfers. The
proposal would further modify certain Regulation E provisions to
address how such accounts are marketed by financial institutions
and used by consumers. These proposed modifications would establish
disclosure requirements specific to prepaid accounts that would
require financial institutions to provide certain disclosures to
consumers prior to and after the acquisition of a prepaid account.
The proposal also includes an option for an alternative to
Regulation E's periodic statement requirement that would permit
prepaid product providers to make available certain methods for
access to account information for free in lieu of sending periodic
statements. Additionally, it would apply Regulation E's limited
liability and error resolution provisions to prepaid accounts, with
certain modifications. Moreover, the proposal would also contain
amendments to Regulations Z to regulate prepaid accounts with
overdraft services or other credit features. Finally, the proposal
would require prepaid account issuers to provide the Bureau with
terms and conditions for prepaid accounts, which the Bureau would
post on its website. Relatedly, issuers would also be required to
post the terms and conditions on their own websites. To accommodate
these changes, the Bureau is also proposing to make corresponding
changes to various provisions in Regulations Z
US Code:
15
USC 1601(a) Name of Law: Truth In Lending Act
The Bureau is proposing changes
to Regulation Z so that prepaid account issuers that offer
overdraft services or other credit features in connection with such
accounts and charge a fee for the service (such as interest,
transaction fees, annual fees, or other participation fees)
generally would be subject to Regulation Z's credit card rules and
disclosure requirements for open-end (not home-secured) consumer
credit plans. In addition, the Bureau proposes to revise Regulation
Z so that Regulation Z's credit card rules would apply to such
features that are linked to prepaid accounts. The proposal would
also require that an issuer must obtain consumer consent before
adding overdraft services and credit features to a prepaid account
and would prohibit the issuer from adding such features until at
least 30 calendar days after a prepaid account has been registered.
Moreover, the proposal would amend Regulation Z as it pertains to
credit on prepaid accounts to provide that a consumer would have 21
days to repay the debt the consumer incurred in connection with
using the overdraft service or credit feature. In most cases, the
proposal would also prevent an issuer from immediately taking
incoming payments to a prepaid account such as cash loads or direct
deposits to repay and replenish the credit line.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Regulation Z Prepaid Supporting Statement 1-2-15 final.pdf
Disclosure Requirements