(a) Provider of electronic fund transfer service. A person that
provides an electronic fund transfer service to a consumer but that
does not hold the consumer’s account is subject to all requirements
of this part if the person—
(1) issues a debit card (or other access
device) that the consumer can use to access the consumer’s account
held by a financial institution; and
(2) has no agreement with the account-holding
institution regarding such access.
(b) Compliance by service provider. In addition
to the requirements generally applicable under this part, the service
provider shall comply with the following special rules:
(1) Disclosures
and documentation. The service provider shall give the disclosures
and documentation required by sections 205.7, 205.8, and 205.9 that
are within the purview of its relationship with the consumer. The
service provider need not furnish the periodic statement required
by section 205.9(b) if the following conditions are met:
(i) the debit
card (or other access device) issued to the consumer bears the service
provider’s name and an address or telephone number for making inquiries
or giving notice of error;
(ii) the consumer receives a notice
concerning use of the debit card that is substantially similar to the notice
contained in appendix A of this part;
(iii) the consumer receives, on or with
the receipts required by section 205.9(a), the address and telephone
number to be used for an inquiry, to give notice of an error, or to
report the loss or theft of the debit card;
(iv) the service provider transmits
to the account-holding institution the information specified in section
205.9(b)(1), in the format prescribed by the automated clearinghouse
system used to clear the fund transfers;
(v) The service provider extends the
time period for notice of loss or theft of a debit card, set forth
in section 205.6(b)(1) and (2), from two business days to four business
days after the consumer learns of the loss or theft; and extends the
time periods for reporting unauthorized transfers or errors, set forth
in sections 205.6(b)(3) and 205.11(b)(1)(i), from 60 days to 90 days
following the transmittal of a periodic statement by the account-holding
institution.
(2) Error resolution.
(i) The service
provider shall extend by a reasonable time the period in which notice
of an error must be received, specified in section 205.11(b)(1)(i),
if a delay resulted from an initial attempt by the consumer to notify
the account-holding institution.
(ii) The service provider shall disclose
to the consumer the date on which it initiates a transfer to effect
a provisional credit in accordance with section 205.11(c)(2)(ii).
(iii) If the service
provider determines an error occurred, it shall transfer funds to
or from the consumer’s account, in the appropriate amount and within
the applicable time period, in accordance with section 205.11(c)(2)(i)
(iv) If funds were
provisionally credited and the service provider determines no error
occurred, it may reverse the credit. The service provider shall notify
the account-holding institution of the period during which the account-holding
institution must honor debits to the account in accordance with section
205.11(d)(2)(ii). If an overdraft results, the service provider shall
promptly reimburse the account-holding institution in the amount of
the overdraft.
6-345
(c) Compliance by account-holding institution. The account-holding institution need not comply with this part of
the act and this regulation with respect to electronic fund transfers
initiated through the service provider except as follows:
(1) Documentation. The account-holding institution shall provide a periodic statement
that describes each electronic fund transfer initiated by the consumer
with the access device issued by the service provider. The account-holding
institution has no liability for the failure to comply with this requirement
if the service provider did not provide the necessary information;
and
(2) Error resolution. Upon request, the account-holding
institution shall provide information or copies of documents needed
by the service provider to investigate errors or to furnish copies
of documents to the consumer. The account-holding institution shall
also honor debits to the account in accordance with section 205.11(d)(2)(ii).
