The EFTA ensures adequate disclosure of basic terms, costs, and rights relating to electronic fund transfer (EFT) services debiting or crediting a consumerâs account. The disclosures required by the EFTA are triggered by certain specified events. The disclosures inform consumers about the terms of the electronic fund transfer service, activity on the account, potential liability for unauthorized transfers, and the process for resolving errors. To ease institutionsâ burden and cost of complying with the disclosure requirements of Regulation E (particularly for small entities), Regulation E includes model forms and disclosure clauses.
Regulation E applies to all financial institutions. In addition, certain provisions in Regulation E apply to entities that are not financial institutions, including: those that act as service providers or automated teller machine (ATM) operators; merchants and other payees that engage in electronic check conversion (ECK) transactions, the electronic collection of returned item fees, or preauthorized transfers; issuers and sellers of gift cards and gift certificates; and remittance transfer providers.
The Federal Reserve estimates that the 1,018 respondents would take, on average, 120 hours (three business weeks) to update their systems to comply with the disclosure requirements addressed in section 1005.31, resulting in a one-time increase of 122,160 hours. On a continuing basis, the Federal Reserve estimates that 1,018 institutions would take, on average, 8 hours (one business day) per month to comply with disclosure requirements in accordance with section 1005.31 resulting in an increase to ongoing burden of 97,728 hours. The Federal Reserve estimates that 733,000 consumers would spend, on average, 5 minutes in order to provide a notice of error as required under section 1005.33(b), resulting in an increase to the total annual burden of 61,083 hours. The Federal Reserve estimates that its respondents would take, on average, 4.5 hours per month to address a sender's notice of error as required by section 1005.33(c)(1), resulting in an increase to the ongoing burden of 54,972 hours. The Federal Reserve estimates that its respondents would take, on average, 40 hours (one business week) annually to ensure compliance with the error resolution requirements under section 1005.33, resulting in a one-time increase to the burden of 40,720 hours. On a continuing basis, the Federal Reserve estimates that its respondents would take, on average, 8 hours (one business day) annually to maintain the requirements under section 1005.33, resulting in an increase to the ongoing burden of 8,144 hours. The Federal Reserve estimates that its respondents would take, on average, 40 hours (one business week) to establish policies and procedures for agent compliance under section 1005.35, resulting in a one-time increase to the burden of 40,720 hours. On a continuing basis, the Federal Reserve estimates that its respondents would take, on average, 8 hours (one business day) annually to maintain the requirements under section 1005.35, resulting in an increase to the ongoing burden of 8,144 hours.
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.
RegE_20160128_omb.pdf
Error resolution (Sections 1005.8(b) and 1005.11)