Account Based Disclosures in Connection with Consumer Financial Protection Bureau Regulations E and DD and Federal Reserve Regulation CC
Revision of a currently approved collection
No
Regular
05/25/2021
Requested
Previously Approved
36 Months From Approved
05/31/2021
14,907,461
43,154,969
579,958
2,946,887
0
0
Regulations E & DD (Consumer Financial Protection Bureauâs Regulations) and Regulation CC (the Federal Reserveâs Regulation) ensure adequate disclosures regarding accounts, including electronic fund transfer services, availability of funds, and fees and annual percentage yield for deposit accounts.
Generally, the Regulation E disclosures are designed to ensure consumers receive adequate disclosure of basic terms, costs, and rights relating to electronic fund transfer (EFT) services provided to them so that they can make informed decisions. Institutions offering EFT services must disclose to consumers certain information, including: initial and updated EFT terms, transaction information, the consumerâs potential liability for unauthorized transfers, and error resolution rights and procedures.
Like Regulation E, Regulation CC has consumer protection disclosure requirements. Specifically, Regulation CC requires depository institutions to make funds deposited in transaction accounts available within specified time periods, disclose their availability policies to customers, and begin accruing interest on such deposits promptly. The disclosures are intended to alert customers that their ability to use deposited funds may be delayed, prevent unintentional (and costly) overdrafts, and allow customers to compare the policies of different institutions before deciding at which institution to deposit funds. Depository institutions must also provide an awareness disclosure regarding substitute checks. The regulation also requires notice to the depositary bank and to a customer of nonpayment of a check.
Regulation DD also has similar consumer protection disclosure requirements that are intended to assist consumers in comparing deposit accounts offered by institutions, principally through the disclosure of fees, the annual percentage yield, and other account terms. Regulation DD requires depository institutions to disclose yields, fees, and other terms concerning deposit accounts to consumers at account opening, upon request, and when changes in terms occur. Depository institutions that provide periodic statements are required to include information about fees imposed, interest earned, and the annual percentage yield (APY) earned during those statement periods. It also contains rules about advertising deposit accounts.
There are a number of ICs that apply to FDIC-supervised banks subject to the CFPBâs Prepaid Accounts Rule, which modified Regulation E that became effective starting in 2019. Banks issuing prepaid account agreements are required to submit to the CFPB documents containing, among other things, the general terms and conditions of these agreements. For ease of exposition, the ICs have been grouped into (a.) items that apply to new products, (b.) implementation items that apply to new entrants, and (c.) ongoing items that apply to active products that are not new.
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.
FR2-0084 Consumer Disclosures 86 FR 27596 May 21 2021.pdf
SPST 0084 Account Based Disclosures 2021 Renewal.docx
Regulations CC - Case-by-case hold notice (sections 229.16(c) )