OCC 2001-21
OCC Bulletin
Subject: Regulation E--Electronic Fund Transfer Act
Description: Final Rules and Staff Interpretation
Date: April 16, 2001

TO:  Chief Executive Officers and Compliance
Officers of All National Banks, Department and
Division Heads, and All Examining Personnel

On March 6, 2001, and March 16, 2001, the Board of
Governors of the Federal Reserve System (the Board)
published in the Federal Register two final actions.
The first amends Regulation E, which implements the
Electronic Fund Transfer Act (EFTA), and the second
amends the Official Staff Interpretations to Regulation
E.  

The revisions to Regulation E published on March 6,
2001, implement provisions of the Gramm-Leach-Bliley
Act that require the disclosure of certain fees
associated with automated teller machine (ATM)
transactions.  An ATM operator that imposes a fee on
a consumer for an electronic fund transfer (EFT)
service or balance inquiry is required to provide
notice of that fact in a prominent and conspicuous
location on or at the ATM where the EFT or inquiry is
initiated.  The ATM operator must also disclose that
a fee will be imposed and the amount of the fee, either
on the screen of the ATM or on a paper notice, before
the consumer is committed to completing the transaction.
In addition, the initial disclosures must include a
notice that a fee may be imposed for an EFT or balance
inquiry by an ATM operator not holding the consumer's
account or by any national, regional, or local network
used to complete the transaction.  The revisions are
effective immediately; compliance is mandatory as of
October 1, 2001.  However, ATMs that lack the technical
capability to provide the required on-screen or paper
notice are exempt from that requirement until December
31, 2004.

The revisions to the Official Staff Interpretations
published on March 16, 2001, provide guidance on
electronic check conversion transactions when a
consumer authorizes the use of a check to capture
information for initiating an electronic debit from
the consumer's account.  Guidance is also provided on
computer-initiated bill payments, authorization of
recurring debits from a consumer's account, and other
issues.  The rule is effective immediately; the
mandatory compliance date is January 1, 2002.

Questions concerning the final rules and Regulation
E may be directed to your supervisory office, the
Community and Consumer Policy Division at
(202) 874-4428, or the Community and Consumer Law
Division at (202) 874-5750.



__________________________________
Ralph E. Sharpe
Deputy Comptroller
Community and Consumer Policy

Attachments--66 FR 13409; 66 FR 15187