To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:
The Federal Reserve Board has published proposed amendments to Regulation E, which implements the Electronic Fund Transfer Act, and to the regulation’s official staff commentary that clarify the disclosure obligations of automated teller machine (ATM) operators with respect to fees imposed on a consumer for initiating an electronic fund transfer or a balance inquiry at an ATM.
The commentary interprets the requirements of Regulation E to facilitate compliance primarily by financial institutions that offer electronic fund transfer services to consumers.
Currently, the regulation provides that an ATM operator that charges a fee for initiating an electronic fund transfer or balance inquiry must post notices at ATMs that a fee will be imposed. The proposed revisions would clarify the intent of the rule that ATM operators can satisfy the requirement by providing a notice that a fee "may" be imposed if there are circumstances under which some consumers would not be charged for services.
The Board is continuing to consider other issues that were addressed in its proposed September 2004 update to Regulation E.
Comments are due on or before October 7, 2005.
Legal and Compliance Risk Department
William L. Rutledge
Executive Vice President