RegE_20160128_omb

Supporting Statement for the
Recordkeeping and Disclosure Requirements
Associated with the CFPB’s Regulation E (Electronic Fund Transfer Act)
(Reg E; OMB No. 7100-0200)
Summary
The Board of Governors of the Federal Reserve System (the Board), under delegated
authority from the Office of Management and Budget (OMB), proposes to extend for three years,
with revision, the Recordkeeping and Disclosure Requirements Associated with the CFPB’s
Regulation E (Electronic Fund Transfer Act) (Reg E; OMB No. 7100-0200). Since 2011, the
Consumer Financial Protection Bureau (CFPB) has been responsible for issuing most of the
Electronic Funds Transfer Act (EFTA) regulations that apply to financial institutions and other
entities (with the exception of certain motor vehicle dealers), other than the provisions governing
debit card interchange fees and routing of debit card transactions1,2. However, the Federal
Reserve continues to be responsible under the Paperwork Reduction Act (PRA) for renewing
every three years the information collections mandated by the regulation for institutions that are
supervised by the Federal Reserve. The PRA classifies reporting, recordkeeping, or disclosure
requirements of a regulation, including the recordkeeping and disclosure requirements of
Regulation E, as a “collection of information.”3
On July 21, 2011, rulemaking authority for EFTA, except EFTA section 920, was
transferred from the Federal Reserve to the CFPB under the Dodd-Frank Act for entities other
than certain motor vehicle dealers excluded from the CFPB’s authority under Dodd-Frank Act
section 1029. In December 2011, the CFPB published an interim final rule establishing its own
Regulation E to implement the parts of the EFTA over which it has authority at 12 C.F.R.
part 1005, which substantially duplicated the Federal Reserve’s Regulation E.4
Since the CFPB published the interim final rule to establish its own Regulation E, the
agency has issued several final rules affecting Regulation E. On February 7, 2012, a notice of
final rulemaking was published in the Federal Register to implement section 1073 of the DoddFrank Act, which provides new disclosures, error resolution, and cancellation rights to
consumers sending remittance transfers abroad (77 FR 6194). The February 2012 remittance
transfer rule was subsequently amended in final rules published in the Federal Register on
August 20, 2012 (77 FR 50244) and May 22, 2013 (78 FR 30662) and a technical correction
published in the Federal Register on July 10, 2012 (77 FR 40459). These rules collectively went
into effect on October 28, 2013. The Federal Reserve proposes to modify its information
collection to reflect these new requirements, which is discussed more fully below.
1

Section 920 of the EFTA regulates debit card interchange fees and routing of debit card transactions and is
implemented by the Federal Reserve’s Regulation II, 12 CFR part 235.
2
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) excluded certain motor
vehicle dealers from the CFPB’s authority and those dealers are, therefore, subject to applicable provisions of the
Federal Reserve’s Regulation E. See section 1029 of the Dodd-Frank Act, Pub. L. 111-203, 124 Stat. 1376 (2010),
12 U.S.C. 5512, 5519, 5581. The Bureau’s Regulation E is published at 12 CFR part 1005 and the Federal
Reserve’s Regulation E is published at 12 CFR part 205.
3
See 44 U.S.C. § 3501 et seq.
4
See 76 FR 81020 (Dec. 27, 2011).

After the remittance transfer rules went into effect, the CFPB published another final rule
in the Federal Register on September 18, 2014 (79 FR 55970) to extend for another five years a
temporary provision that permits insured financial institutions to estimate certain remittance
transfer pricing disclosures and to make other clarifications and technical corrections. The
September 2014 rule became effective on November 17, 2014.
On March 26, 2013, a notice of final rulemaking was published in the Federal Register to
implement a change to the EFTA eliminating the requirement that a fee notice be posted on or at
an ATM (78 FR 18221). The amendments did not affect the requirement that a specific fee
disclosure appear on the screen of the machine or on paper issued from the machine. The
Federal Reserve believes that the elimination of this notice requirement will have a negligible
effect on its information collection.
The Federal Reserve accounts for the paperwork burden associated with the CFPB’s
Regulation E only for Federal Reserve-supervised institutions.5 The total current annual burden
is estimated to be 59,650 hours. With proposed revisions the total annual burden is estimated to
be 493,321 hours.6
Background and Justification
The EFTA ensures adequate disclosure of basic terms, costs, and rights relating to
electronic fund transfer (EFT) services debiting or crediting a consumer’s 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
institutions’ 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.
Description of Information Collection
The disclosure requirements associated with Regulation E are described below. No other
5

Other federal agencies account for the paperwork burden that Regulation E imposes on the institutions for which
they have supervisory authority.
6
The Federal Reserve accounts for the following types of institutions, except those that are supervised by the
CFPB: state member banks, their subsidiaries, subsidiaries of bank holding companies, U.S. branches and agencies
of foreign banks (other than federal branches, federal agencies, and insured state branches of foreign banks),
commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25
or 25A of the Federal Reserve Act (12 U.S.C. § 601-604a; 611-631). The CFPB supervises, among other
institutions, insured depository institutions with over $10 billion in assets and their affiliates (including affiliates that
are themselves depository institutions regardless of asset size and subsidiaries of such affiliates).

2

federal law mandates these disclosures, although some states may have similar requirements.
Initial Disclosures and Change-In-Terms (Sections 1005.7(b), 1005.8(a), and
1005.18(c)(1))
Institutions that offer EFT services must provide written disclosures to a consumer who
contracts for those services. The purpose of these disclosures is to provide consumers with
information about the terms of the EFT services offered at the time of the initial agreement, and
subsequently, in the event of changes in certain required disclosure terms. Initial disclosures
include: information about the consumer’s liability for unauthorized transfers; the types of
transfers available and any limitations on the frequency and dollar amount of transfers; any fees
imposed by the financial institutions for EFTs or the right to make EFTs; a summary of the
consumer’s right to documentation of transfers and to stop payment of preauthorized transfers;
and information on resolving errors on the account. The initial disclosures must be provided
when a consumer contracts for EFT services or before the first electronic transfer involving the
account is made.
A change-in-terms notice is required if the change would result in increased liability for
the consumer, increased fees, fewer types of available EFTs, or stricter limitations on the
frequency or dollar amounts of transfers. A change-in-terms notice must be mailed or delivered
to the consumer at least 21 days before the effective date of the change in term or condition.
A financial institution’s initial disclosures, if applicable for payroll card accounts for
which the financial institution will not be providing regular written periodic statements, must
disclose: 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 website; 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 1005.7(b)(6)), including a telephone number to call to request a history. In addition, the
disclosures must include an error resolution notice substantially similar to the notice contained in
section A-7(b) in appendix A.
Periodic Statements (Section 1005.9(b) and 1005.18(b))
The purpose of the periodic disclosure requirement is to ensure prompt and accurate
documentation of consumers’ use of EFT services. The disclosures must include: transaction
information for EFTs occurring during the statement period; fees assessed during the statement
period for EFTs, the right to make transfers, or account maintenance; opening and closing
balances; the address and telephone number for error inquiries; and a telephone number for
verification of preauthorized transfers to the consumer’s account if the institution uses that
option. Institutions are required to send a periodic statement for each monthly cycle in which an
EFT has occurred and at least quarterly if no transfer has occurred. Modified requirements apply
to passbook and certain other types of accounts. Also, as an alternative to providing periodic
statements for payroll card accounts, a financial institution may make account transaction
information available to the consumer by telephone, electronically, and upon the consumer’s
request, in writing.

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Because periodic statements required under Regulation E are typically included with
monthly checking and savings account statements provided under Truth in Savings Act
(Regulation DD), the burden associated with this requirement for entities subject to the Federal
Reserve’s supervisory authority is accounted for in the Disclosure Requirements Associated with
CFPB’s Regulation DD (Truth in Savings) (Reg DD; OMB No. 7100-0271), and is therefore not
accounted for in the Regulation E burden estimate. The burden associated with this requirement
for financial institutions that are not subject to Regulation DD is addressed in the Estimate of
Respondent Burden section of this proposal.
Error Resolution Notice and Procedures for Resolving Errors (Sections 1005.8(b)
and 1005.11)
Institutions must notify consumers about their rights and responsibilities in connection
with errors involving EFTs by providing either a complete statement of error resolution rights
each year or a shorter error resolution rights summary on or with each periodic statement. Error
resolution rights summaries are typically included with monthly checking and savings account
statements provided under Regulation DD, therefore the Regulation E burden associated with
this requirement for entities subject to the Federal Reserve’s supervisory authority is accounted
for in the estimate of the paperwork burden under Regulation DD.
When a consumer provides notice of an error, the institution must investigate and
determine whether an error occurred.7 Generally, if the institution is unable to complete its
investigation of the error within 10 business days, it may take up to 45 calendar days provided it
provisionally credits the disputed amount to the consumer’s account within the 10 business days,
notifies the consumer, orally or in writing, of the provisional crediting, and gives the consumer
full use of the funds during the investigation.8 The institution must correct the error, if any,
report the results to the consumer, and notify the consumer that the provisional credit has been
made final or that it has been debited, depending on the institution’s determination. A correction
notice may be included in the periodic statement if it is clearly identified, and the statement is
mailed or delivered within the applicable time limit. For payroll card accounts where the
financial institution provides alternative disclosures to regular periodic statements, the timing
requirements for the error resolution procedures are modified.9
Exclusions From Gift Card and Gift Certificate Coverage (Section 1005.20(b)(2))
Section 1005.20(b)(2) implements exclusions from coverage under the gift card
requirements in section 1005.20, including an exclusion for cards, codes, or other devices that
are reloadable and not marketed or labeled as a gift card or gift certificate. As noted in section
1005.20(b)(2)-4.i., institutions will qualify for this exclusion so long as they establish and
7

A consumer’s potential liability for an unauthorized transfer depends on when the consumer notifies the financial
institution of the loss or theft of an access device or of the unauthorized transfer. See 12 C.F.R. § 1005.6. These
benchmarks are modified for financial institutions providing alternative disclosures to periodic statements for
payroll card accounts. See 12 C.F.R. § 1005.18(c).
8
The institution need not provisionally credit the account and take up to 45 days to investigate the error if the
institution requests the consumer to provide a written confirmation within 10 business days of an oral notice of error,
but the institution does not receive the written confirmation.
9
See 12 C.F.R. § 1005.18(c).

4

maintain policies and procedures reasonably designed to avoid the marketing of a prepaid card
not otherwise subject to the rule, such as a general-purpose reloadable card, as a gift card or gift
certificate.
Prohibition on Sale of Gift Certificates or Gift Cards with Expiration Dates
(Section 1005.20(e)(1))
Institutions involved in issuing and selling gift certificates or cards are required to adopt
policies and procedures to provide consumers with a reasonable opportunity to purchase a
certificate or card with at least five years remaining until the certificate or card expiration date.
Electronic Communication
A consumer may agree to receive from a financial institution in electronic form any
disclosure that Regulation E requires be provided in writing, subject to the consent and other
requirements of the Electronic Signatures in Global and National Commerce Act (E-Sign Act),
so long as the disclosure complies with the regulation in all other respects. Any reference to a
mandatory written disclosure does not exclude the possibility that the consumer may agree to
receive the disclosure in electronic form.
Disclosures Related to ECK Transactions and Collecting Returned Item Fees
Electronically (Sections 1005.3(a) and (b)(2))
A merchant or other payee who initiates an ECK transaction must provide a notice that
the transaction will or may be processed as an EFT. For point-of-sale transfers, the notice must
be posted in a prominent and conspicuous location, and a copy of the notice must be provided to
the consumer at the time of the transaction. A person initiating an EFT to collect a fee for the
return of an EFT or a check that is unpaid must provide notice to the consumer stating that the
person may electronically collect the fee and the dollar amount of the fee. If the fee may vary
due to the amount of the transaction or due to other factors, then an explanation of how the fee
will be determined must be provided instead. For returned item fees that may be collected
electronically in connection with a point-of-sale transaction, the notice must be posted in a
prominent and conspicuous location. A copy of the notice must be provided to the consumer at
the time of the transaction or mailed to the consumer’s address as soon as reasonably practicable
after the person initiates the EFT to collect the fee. The Federal Reserve previously estimated
one-time burden for implementing the disclosures and believes that, on a continuing basis, there
would be no additional increase in burden.
Terminal Receipts (Sections 1005.9(a))
An institution offering an EFT service must provide a receipt each time a consumer
initiates an EFT of more than $15 at an electronic terminal (for example, an ATM). Terminal
receipts can provide documentation and proof of the transfer in the event of a later dispute. The
terminal receipt, which must be provided at the time of the transfer, must include the amount,
date, and type of transfer, as well as other information identifying the transaction. Because these

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disclosures are machine-generated and do not involve an employee of the institution, for
purposes of the PRA, burden associated with this requirement is negligible.
Preauthorized Transfers (Section 1005.10)
A preauthorized transfer is an EFT authorized in advance to recur at substantially regular
intervals. Preauthorized transfers from a consumer’s account may only be authorized by a
writing signed or similarly authenticated by the consumer.
For preauthorized transfers to the consumer’s account, the institution must provide oral or
written notice of the transfer (positive notice) or that the transfer did not occur (negative notice).
In lieu of providing positive or negative notice, the institution may, and typically does, provide a
readily available telephone number that the consumer can call to verify receipt of the deposit. If
positive notice is provided to the consumer by the payor, as in most cases, the financial
institution need not provide notice. Therefore, the burden of this requirement is negligible.
For preauthorized transfers from the consumer’s account, if a payment will vary in
amount from the previous transfer under the same authorization or from the preauthorized
amount, either the institution or the payee must provide written notice to the consumer of the
amount and date of the transfer. Alternatively, the institution or the payee may give the
consumer the option of receiving notice only when a transfer falls outside a specified range or
only when a transfer differs from the most recent transfer by more than an agreed-upon amount.
Because in the vast majority of instances the payee, rather than the bank, satisfies this obligation,
the burden on banks is negligible.
Disclosures at ATMs (Section 1005.16(c))
An ATM operator that imposes a fee on a consumer for initiating an EFT or balance
inquiry must provide screen or paper notice that an ATM fee will be imposed and the amount of
the fee before the consumer is committed to paying the fee. Because these disclosures are
machine-generated and involvement by an employee of the institution is minimal, for purposes
of the PRA, burden associated with this requirement is negligible. The EFTA eliminated a
requirement that a fee notice be posted on or at an ATM. Since the burden of providing the
notice was negligible, the elimination of this notice requirement will have a negligible effect on
PRA burden.
Overdraft Services Opt-In Requirement (Section 1005.17(b))
In general, a financial institution shall not assess an overdraft fee for paying ATM and
one-time debit card transactions that overdraw a consumer’s account, unless the consumer
affirmatively consents, or opts in, to the institution’s payment of overdrafts for these
transactions, pursuant to an opt-in notice that is substantially similar to Model Form A-9. The
Federal Reserve took one-time burden when this section was implemented and staff believe that,
on a continuing basis, there is no additional ongoing burden as the disclosure was sufficiently
accounted for once incorporated into the current initial account disclosure section 1005.7(b).

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Disclosures Related to Loyalty, Award, or Promotional Cards,
(Section 1005.20(a)(4)(iii))
In order to qualify for an exclusion from coverage under the gift card requirements in
section 1005.20, section 1005.20(a)(4)(iii)(A) requires a loyalty, award, or promotional gift card
to state on the card, code, or other device itself that it is issued for loyalty, award, or promotional
purposes. This statement must be on the front of the card, code, or other device to enable
consumers to easily identify the type of card and avoid potential consumer confusion arising
from the fact that a loyalty, award, or promotional gift card may otherwise look identical to a gift
card that a consumer may purchase directly from a merchant. In addition, disclosure of the
expiration date for the underlying funds are to be stated on the front of a loyalty, award, or
promotional gift card because such cards typically have shorter expiration dates than other
certificates or cards subject to the rule. See section 1005.20(a)(4)(iii)(B). Where the card and
funds expiration date are the same, a single disclosure regarding the expiration dates satisfies the
requirement in section 1005.20(a)(4)(iii)(B). The Federal Reserve previously estimated one-time
burden for implementing the disclosures and staff believe that, on a continuing basis, there would
be no additional increase in burden.
Disclosures Related to Gift Certificate or Gift Card Expiration and Funds
Expiration (Section 1005.20(e)(3))
Three disclosures must be stated on the certificate or card, as applicable: (1) the terms of
expiration of the underlying funds or, if the underlying funds do not expire, that fact; (2) a tollfree telephone number and, if one is maintained, a website that a consumer may use to obtain a
replacement certificate or card after the certificate or card expires, if the underlying funds may be
available; and (3) a statement that the certificate or card expires, but the underlying funds either
do not expire or expire later than the certificate or card, and that the consumer may contact the
issuer for a replacement card. The Federal Reserve previously estimated one-time burden for
implementing the disclosures and staff believe that, on a continuing basis, there would be no
additional increase in burden.
Proposed Revisions
Associated with Rules on Providing Disclosures for Remittance Transfers (Section
1005.31), Procedures for Resolving Errors for Remittance Transfers (Section
1005.33), Acts of Agents for Remittance Transfers (Section 1005.35), and
Remittance Transfers Scheduled Before the Date of Transfer (Section 1005.36)
The Federal Reserve proposes to modify its information collection as described below to
reflect new disclosure requirements associated with the CFPB’s recent amendments to
Regulation E.
Disclosures for Remittance Transfers (Section 1005.31)
A remittance transfer provider must provide written prepayment disclosures to a
consumer sender who requests a remittance transfer to a designated recipient abroad. The

7

purpose of these disclosures is to provide consumers, when they request a transfer and before
they make a payment, with information about taxes and fees they will incur and the total amount
the designated recipient will receive. Prepayment disclosures include: the transfer amount, fees
imposed and taxes collected by the provider, the exchange rate, covered third-party fees, the total
amount that will be received by the designated recipient, and a statement that non-covered thirdparty fees or taxes collected by a person other than the provider may apply to the remittance
transfer.
A remittance transfer provider must also provide a written receipt to a sender when
payment is made. In addition to the information required in the prepayment disclosure, a receipt
must also include the date in the foreign country when funds will be available to the designated
recipient, the name and if provided, the telephone number/address of the designated recipient,
information on resolving errors and the right to cancel the transaction, contact information for
the remittance transfer provider, a statement that the sender can contact the State agency that
licenses or charters the remittance transfer provider and the CFPB, and the transfer date if the
transfer has been scheduled in advance.
In lieu of a separate prepayment disclosure and receipt, a remittance transfer provider
may provide a combined disclosure when a sender requests a remittance transfer, prior to making
payment. If a remittance transfer provider chooses to provide a combined disclosure, the
provider must provide the consumer with proof of payment when payment is made.
Upon a sender’s request, a remittance transfer provider must promptly provide a long
form error resolution and cancellation notice that provides more detail on the sender’s error
resolution and cancellation rights.
Certain fee, tax, and exchange rate disclosures in the prepayment and receipt or the
combined disclosure may be estimated in certain circumstances pursuant to section 1005.32.
Procedures for Resolving Errors for Remittance Transfers (Section 1005.33)
When a consumer sender provides notice of an error within 180 days after the date the
funds are available to the designated recipient, the remittance transfer provider must investigate
and determine whether an error occurred within 90 days of receiving the notice of error. The
provider shall report the result to the sender, including notice of any remedies available for
correcting any error that the provider has determined has occurred within three business days
after completing its investigation. If the remittance transfer provider has determined that no
error or a different error has occurred, the provider must provide a written explanation of the
provider’s finding and note the sender’s right to request the documents on which the provider
relied on making its determination. Upon a sender’s request, the provider shall promptly provide
copies of the documents on which the provider relied in making its error determination. The
remittance transfer provider’s policies and procedures shall address the retention of
documentation related to error investigations, and providers are subject to the record retention
requirements under section 1005.13.

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Acts of Agents for Remittance Transfers (Section 1005.35)
Remittance transfers are often sent through an agent of the remittance transfer provider.
Section 1005.35 provides that a remittance transfer provider is liable for any violation of the
remittance transfer provisions when such agent acts for the provider.
Remittance Transfers Scheduled Before the Date of Transfer (Section 1005.36)
For a one-time transfer scheduled five or more business days before the date of transfer
or for the first in a series of preauthorized remittance transfers, a remittance transfer provider
must provide the prepayment disclosure and receipt required in sections 1005.31(b)(1) and (2) or
the combined disclosure described in section 1005.31(b)(3) as well as an additional receipt if any
of the previously provided disclosures contain estimates as permitted under section 1005.32,
which must be mailed or delivered no later than one business day after the date of the transfer. If
the transfer involves the transfer of funds from the sender’s account held by the provider, the
additional receipt can be provided on or with the next periodic statement for that account, or
within 30 days after the date of the transfer if a periodic statement is not provided.
For subsequent transfers in a series of preauthorized remittance transfers, if any of the
information on the most recent receipt provided to the consumer is no longer accurate (other than
the dates or because the disclosure contained estimates, as permitted under section 1005.32), the
provider must mail or deliver an updated receipt within a reasonable time prior to the scheduled
date of the next transfer. Unless that updated receipt did not contain any estimates pursuant to
section 1005.32, the provider must mail or deliver to the sender a post-transfer receipt no later
than one business day after the date of the transfer. If the transfer involves the transfer of funds
from the sender’s account held by the provider, the post-transfer receipt can be provided on or
with the next periodic statement for that account, or within 30 days after the date of the transfer
if a periodic statement is not provided.
In addition, for subsequent transfers in a series of preauthorized remittance transfers, a
provider must disclose to the sender the date the provider will make the subsequent transfer, a
statement about the cancellation rights, and contact information for the remittance transfer
provider. If the future date or dates of transfer are described as occurring in regular periodic
intervals (e.g., the 15th of every month), the provider must disclose any future date or dates of
transfer that do not conform to the described interval. These disclosures must be received by the
sender not more than 12 months and no less than five business days prior to the date of any
subsequent transfer to which it pertains and may be provided in a separate disclosure or as part of
one of the other required disclosures. For any subsequent preauthorized remittance transfer that
is four or fewer business days after the date when payment is made, these disclosures must be
provided on or with the receipt.
Time Schedule for Information Collection
Disclosure requirements associated with Regulation E are triggered by specific events,
and disclosures must be provided to consumers within the time periods established by the law

9

and regulation. Disclosures pertaining to a particular transaction or consumer account are not
publicly available.
Legal Status
The Board’s Legal Division has determined that the CFPB is authorized to issue its
Regulation E pursuant to its authority to prescribe rules to carry out the purposes of the EFTA
(15 U.S.C. § 1693b(a)). The obligation to comply with the recordkeeping and disclosure
requirements of the CFPB’s Regulation E is mandatory. As we understand, the Board does not
collect any information under the CFPB’s Regulation E, so no issue of confidentially arises.
However, in the event the Board were to obtain this any of the recordkeeping or disclosure
documentation during the course of an examination, the information may be protected from
disclosure under exemptions 4, 6, or 8 of the Freedom of Information Act (5 U.S.C. § 552(b)(4),
(6), and (8)).
Consultation Outside the Agency
On June 10, 2015, the Federal Reserve published a notice in the Federal Register
(80 FR 32953) requesting public comment for 60 days on the proposal to extend, with revision,
Reg E. The comment period for this notice expired on August 10, 2015. The Federal Reserve
did not receive any comments. On August 28, 2015, the Federal Reserve published a final notice
in the Federal Register (80 FR 52279).
Estimate of Respondent Burden
The total current annual burden for this information collection is estimated to be 59,650
hours and with the proposed revisions is estimated to be 493,321 hours, an increase of 433,671
hours. 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

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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.
The proposed information collection revisions would impose a one-time increase in the
estimated annual burden 203,600 hours. On a continuing basis the proposed information
collection revisions would increase in the estimated annual burden by 230,071 hours.
The burden for the initial disclosures, change in terms notices, and error resolution rules
requirements applies to all Regulation E respondents. For the periodic disclosure requirements,
the burden for entities subject to the Federal Reserve’s supervisory authority is accounted for in
the estimate under Regulation DD. However, there are 190 Regulation E respondents10 that are
not included in the Regulation DD burden estimate and are accounted for under Regulation E for
the periodic disclosure requirements, as shown in the table below.
Moreover, no burden for receipts or disclosures related to preauthorized transfers is
shown below because that burden is believed to be negligible. Receipts provided at electronic
terminals are handled entirely by machine. For preauthorized transfers to a consumer’s account,
banks ordinarily provide a readily available telephone number that the consumer can call to
verify receipt of the deposit. Finally, for preauthorized transfers from a consumer’s account, the
payee, rather than the bank, ordinarily discloses amounts to be transferred to the consumer.
There is no reporting requirement associated with Regulation E. In addition, for purposes
of the PRA, there is no paperwork burden associated with the recordkeeping requirement of
Regulation E. Section 1005.13(b) requires, “any person subject to the act and this part to retain
evidence of compliance … for a period of not less than two years from the date the disclosures
are required to be made or action is required to be taken,” but does not specify the kind of
records that must be retained.
The estimated total annual burden represents 3.98 percent of total Federal Reserve
System burden.

10

The 190 Federal Reserve-supervised Regulation E respondents that are not SMBs are comprised of 145 branches
and agencies of foreign banks, 44 Edge and agreement corporations, and 1 commercial lending company. The
Federal Reserve believes that these respondents do not typically provide periodic statements under Regulation DD.

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Number of
respondents

Current

Annual
frequency

Estimated
average time
per response

Estimated
annual burden
hours

Initial disclosures
(1005.7(b) and 1005.18(c)(1))

1,018

250

1.5 minutes

6,363

Change-in-terms (1005.8(a))

1,018

340

1 minute

5,769

Periodic statements
(1005.9(b) and 1005.18(b))
Error resolution
((1005.8(b) and 1005.11))

190

12

7 hours

15,960

1,018

30

30 minutes

15,270

Gift Card exclusion policies and
procedures (1005.20(b)(2))

1,018

1

8 hours

8,144

Gift Card Policy and procedures
(1005.20(e)(1))

1,018

1

8 hours

8,144

Total

59,650

12

Proposed
Initial disclosures
(1005.7(b)) and (1005.18(c)(1))
Change-in-terms (1005.8(a))
Periodic statements (1005.9(b))
Error resolution
((1005.8(b) and 1005.11))
Gift Card Exclusion policies and
procedures (1005.20(b)(2))
Gift Card Policy and procedures
(1005.20(e)(1))
Remittance Transfer Disclosures
(1005.31) one-time
Remittance Transfer Disclosures
(1005.31) ongoing
Error Notice from sender
(Consumers)
(1005.33(b)) ongoing
Time Limits and Extent of
Investigation
(Section 1005.33(c)(1)) ongoing
Transmitter Error Resolution
Standards and Recordkeeping
Requirements
(1005.33(g)) one-time
Transmitter Error Resolution
Standards and Recordkeeping
Requirements
(1005.33(g)) ongoing
Acts of Agents
(1005.35) one-time
Acts of Agents
(1005.35) ongoing
Total
Change

Number of
respondents11

Annual
frequency

Estimated
average time
per response

Estimated
annual burden
hours

1,018
1,018
190

250
340
12

1.5 minutes
1 minute
7 hours

6,363
5,769
15,960

1,018

30

30 minutes

15,270

1,018

1

8 hours

8,144

1,018

1

8 hours

8,144

1,018

1

120 hours

122,160

1,018

12

8 hours

97,728

733,000

1

5 minutes

61,083

1,018

12

4.5 hours

54,972

1,018

1

40 hours

40,720

1,018

1

8 hours

8,144

1,018

1

40 hours

40,720

1,018

1

8 hours

8,144
493,321
433,671

11

Of these respondents, 733 are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $550 million in total assets) – 638 state member banks, 70 branches and agencies of foreign
banks, and 25 Edge and agreement corporations. Of the 190 periodic statement respondents, 95 are considered
small entities as defined by the Small Business Administration (i.e., entities with less than $550 million in total
assets) -70 branches & agencies of foreign banks, and 25 Edge and agreement corporations.
www.sba.gov/content/table-small-business-size-standards.

13

The total current annual cost to the public is estimated to be $3,086,888, and with the proposed
revisions would increase to $25,529,36212.
Sensitive Questions
This information collection contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
Since the Federal Reserve does not collect any information pursuant to Regulation E, the
cost to the Federal Reserve System is negligible.

12

Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $17, 45% Financial Managers at
$63, 15% Lawyers at $64, and 10% Chief Executives at $87). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2014, published March 25, 2015, www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined using
the BLS Occupational Classification System, www.bls.gov/soc/.

14