(1) Timing of disclosures.
(i) General. Except as provided in paragraph (b)(1)(ii) or (iii) of this section, a
financial institution shall provide the disclosures required by paragraph
(b) of this section before a consumer acquires a prepaid account.
When a prepaid account is used for disbursing funds to a consumer,
and the financial institution or third party making the disbursement
does not offer any alternative means for the consumer to receive those
funds in lieu of accepting the prepaid account, for purposes of this
paragraph, the disclosures required by paragraph (b) of this section
may be provided at the time the consumer receives the prepaid account.
(ii) Disclosures for prepaid accounts acquired in
retail locations. A financial institution is not required to
provide the long form disclosure required by paragraph (b)(4) of this
section before a consumer acquires a prepaid account in person at
a retail location if the following conditions are met:
(A) The prepaid
account access device is contained inside the packaging material.
(B) The disclosure required
by paragraph (b)(2) of this section is provided on or are visible
through an outward-facing, external surface of a prepaid account access
device’s packaging material.
(C) The disclosure required by paragraph (b)(2)
of this section includes the information set forth in paragraph (b)(2)(xiii)
of this section that allows a consumer to access the information required
to be disclosed by paragraph (b)(4) of this section by telephone and
via a website.
(D) The
long form disclosure required by paragraph (b)(4) of this section
is provided after the consumer acquires the prepaid account. If a
financial institution does not provide the long form disclosure inside
the prepaid account packaging material, and it is not otherwise already
mailing or delivering to the consumer written account-related communications
within 30 days of obtaining the consumer’s contact information,
it may provide the long form disclosure pursuant to this paragraph
in electronic form without regard to the consumer notice and consent
requirements of section 101(c) of the Electronic Signatures in Global
and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 et seq.).
(iii) Disclosures for prepaid accounts
acquired orally by telephone. A financial institution is not
required to provide the long form disclosure required by paragraph
(b)(4) of this section before a consumer acquires a prepaid account
orally by telephone if the following conditions are met:
(A) The financial
institution communicates to the consumer orally, before the consumer
acquires the prepaid account, that the information required to be
disclosed by paragraph (b)(4) of this section is available both by
telephone and on a Web site.
(B) The financial institution makes the information required to be
disclosed by paragraph (b)(4) of this section available both by telephone
and on a Web site.
(C)
The long form disclosure required by paragraph (b)(4) of this section
is provided after the consumer acquires the prepaid account.
(2) Short form disclosure content. In accordance
with paragraph (b)(1) of this section, a financial institution shall
provide a disclosure setting forth the following fees and information
for a prepaid account, as applicable:
(i) Periodic fee. The periodic fee charged
for holding the prepaid account, assessed on a monthly or other periodic
basis, using the term “Monthly fee,” “Annual fee,”
or a substantially similar term.
(ii) Per purchase
fee. The fee for making a purchase using the prepaid account,
using the term “Per purchase” or a substantially similar
term.
(iii) ATM withdrawal fees. Two fees for using
an automated teller machine to initiate a withdrawal of cash in the
United States from the prepaid account, both within and outside of the
financial institution’s network or a network affiliated with
the financial institution, using the term “ATM withdrawal”
or a substantially similar term, and “in-network” or “out-of-network,”
respectively, or substantially similar terms.
(iv) Cash
reload fee. The fee for reloading cash into the prepaid account
using the term “Cash reload” or a substantially similar
term. The fee disclosed must be the total of all charges from the
financial institution and any third parties for a cash reload.
(v) ATM balance inquiry fees. Two fees for
using an automated teller machine to check the balance of the prepaid
account in the United States, both within and outside of the financial
institution’s network or a network affiliated with the financial
institution, using the term “ATM balance inquiry” or a
substantially similar term, and “in-network” or “out-of-network,”
respectively, or substantially similar terms.
(vi) Customer
service fees. Two fees for calling the financial institution
about the prepaid account, both for calling an interactive voice response
system and a live customer service agent, using the term “Customer
service” or a substantially similar term, and “automated”
or “live agent,” or substantially similar terms, respectively,
and “per call” or a substantially similar term. When providing
a short form disclosure for multiple service plans pursuant to paragraph
(b)(6)(iii)(B)(2) of this section, disclose only the fee for
calling the live agent customer service about the prepaid account,
using the term “Live customer service” or a substantially
similar term and “per call” or a substantially similar
term.
(vii) Inactivity fee. The fee for nonuse, dormancy,
or inactivity of the prepaid account, using the term “Inactivity”
or a substantially similar term, as well as the conditions that trigger
the financial institution to impose that fee.
(viii) Statements
regarding additional fee types.
(A) Statement regarding number of additional fee types charged. A
statement disclosing the number of additional fee types the financial
institution may charge consumers with respect to the prepaid account,
using the following clause or a substantially similar clause: “We
charge [x] other types of fees.” The number of additional fee
types disclosed must reflect the total number of fee types under which
the financial institution may charge fees, excluding:
(1) Fees required to be disclosed
pursuant to paragraphs (b)(2)(i) through (vii) and (b)(5) of this
section; and
(2) Any finance charges as described in Regulation Z, 12 CFR 1026.4(b)(11),
imposed in connection with a covered separate credit feature accessible
by a hybrid prepaid-credit card as defined in 12 CFR 1026.61.
(B) Statement directing consumers to disclosure of additional fee types. If a financial institution makes a disclosure pursuant to paragraph
(b)(2)(ix) of this section, a statement directing consumers to that
disclosure, located after but on the same line of text as the statement
regarding the number of additional fee types required by paragraph
(b)(2)(viii)(A) of this section, using the following clause or a substantially
similar clause: “Here are some of them:”.
(ix) Disclosure of additional fee types.
(A) Determination of which additional fee
types to disclose. The two fee types that generate the highest
revenue from consumers for the prepaid account program or across prepaid
account programs that share the same fee schedule during the time
period provided in paragraphs (b)(2)(ix)(D) and (E) of this section,
excluding:
(1) Fees required
to be disclosed pursuant to paragraphs (b)(2)(i) through (vii) and
(b)(5) of this section;
(2) Any fee types that generated less than 5 percent of the
total revenue from consumers for the prepaid account program or across
prepaid account programs that share the same fee schedule during the
time period provided in paragraphs (b)(2)(ix)(D) and (E) of this section;
and
(3) Any finance
charges as described in Regulation Z, 12 CFR 1026.4(b)(11), imposed
in connection with a covered separate credit feature accessible by
a hybrid prepaid-credit card as defined in 12 CFR 1026.61.
(B) Disclosure of fewer than two additional fee types. A financial
institution that has only one additional fee type that satisfies the
criteria in paragraph (b)(2)(ix)(A) of this section must disclose
that one additional fee type; it may, but is not required to, also
disclose another additional fee type of its choice. A financial institution
that has no additional fee types that satisfy the criteria in paragraph
(b)(2)(ix)(A) of this section is not required to make a disclosure
under this paragraph (b)(2)(ix); it may, but is not required to, disclose
one or two fee types of its choice.
(C) Fee variations
in additional fee types. If an additional fee type required to
be disclosed pursuant to paragraph (b)(2)(ix)(A) of this section has
more than two fee variations, or when providing a short form disclosure
for multiple service plans pursuant to paragraph (b)(6)(iii)(B)(2) of this section, the financial institution must disclose the
name of the additional fee type and the highest fee amount in accordance
with paragraph (b)(3)(i) of this section; for disclosures other than
for multiple service plans, it may, but is not required to, consolidate
the fee variations into two categories and disclose the names of those
two fee variation categories and the fee amounts in a format substantially
similar to that used to disclose the two-tier fees required by paragraphs
(b)(2)(v) and (vi) of this section and in accordance with paragraphs
(b)(3)(i) and (b)(7)(ii)(B)(1) of this section. Except when
providing a short form disclosure for multiple service plans pursuant
to paragraph (b)(6)(iii)(B)(2) of this section, if an additional
fee type has two fee variations, the financial institution must disclose
the name of the additional fee type together with the names of the
two fee variations and the fee amounts in a format substantially similar
to that used to disclose the two-tier fees required by paragraphs
(b)(2)(v) and (vi) of this section and in accordance with paragraph
(b)(7)(ii)(B)(1) of this section. If a financial institution
only charges one fee under a particular fee type, the financial institution
must disclose the name of the additional fee type and the fee amount;
it may, but is not required to, disclose also the name of the one
fee variation for which the fee amount is charged, in a format substantially
similar to that used to disclose the two-tier fees required by paragraphs
(b)(2)(v) and (vi) of this section, except that the financial institution
would disclose only the one fee variation name and fee amount instead
of two.
(D) Timing of initial assessment of additional fee
types disclosure.
(1) Existing prepaid account programs
as of April 1, 2019. For a prepaid account program in effect
as of April 1, 2019, the financial institution must disclose the additional
fee types based on revenue for a 24-month period that begins no earlier
than October 1, 2014.
(2) Existing prepaid account programs
as of April 1, 2019 with unavailable data. If a financial institution
does not have 24 months of fee revenue data for a particular prepaid
account program from which to calculate the additional fee types disclosure
in advance of April 1, 2019, the financial institution must disclose
the additional fee types based on revenue it reasonably anticipates
the prepaid account program will generate over the 24-month period
that begins on April 1, 2019.
(3) New
prepaid account programs created on or after April 1, 2019. For
a prepaid account program created on or after April 1, 2019, the financial
institution must disclose the additional fee types based on revenue
it reasonably anticipates the prepaid account program will generate
over the first 24 months of the program.
(E) Timing of periodic reassessment and update of additional fee types
disclosure.
(1) General. A financial institution
must reassess its additional fee types disclosure periodically as
described in paragraph (b)(2)(ix)(E)(2) of this section and
upon a fee schedule change as described in paragraph (b)(2)(ix)(E)(3) of this section. The financial institution must update its
additional fee types disclosure if the previous disclosure no longer
complies with the requirements of this paragraph (b)(2)(ix).
(2) Periodic reassessment. A financial institution
must reassess whether its previously disclosed additional fee types
continue to comply with the requirements of this paragraph (b)(2)(ix)
every 24 months based on revenue for the previous 24-month period.
The financial institution must complete this reassessment and update
its disclosure, if applicable, within three months of the end of the
24-month period, except as provided in the update printing exception
in paragraph (b)(2)(ix)(E)(4) of this section. A financial
institution may, but is not required to, carry out this reassessment
and update, if applicable, more frequently than every 24 months, at
which time a new 24-month period commences.
(3) Fee
schedule change. If a financial institution revises the fee schedule
for a prepaid account program, it must determine whether it reasonably
anticipates that the previously disclosed additional fee types will
continue to comply with the requirements of this paragraph (b)(2)(ix)
for the 24 months following implementation of the fee schedule change.
If the financial institution reasonably anticipates that the previously
disclosed additional fee types will not comply with the requirements
of this paragraph (b)(2)(ix), it must update the disclosure based
on its reasonable anticipation of what those additional fee types
will be at the time the fee schedule change goes into effect, except
as provided in the update printing exception in paragraph (b)(2)(ix)(E)(4) of this section. If an immediate change in terms and conditions
is necessary to maintain or restore the security of an account or
an electronic fund transfer system as described in section 1005.8(a)(2)
and that change affects the prepaid account program’s fee schedule,
the financial institution must complete its reassessment and update
its disclosure, if applicable, within three months of the date it
makes the change permanent, except as provided in the update printing
exception in paragraph (b)(2)(ix)(E)(4) of this section.
(4) Update printing exception. Notwithstanding
the requirements to update an additional fee types disclosure in paragraph
(b)(2)(ix)(E) of this section, a financial institution is not required
to update the listing of additional fee types that are provided on,
in, or with prepaid account packaging materials that were manufactured,
printed, or otherwise produced prior to a periodic reassessment and
update pursuant to paragraph (b)(2)(ix)(E)(2) of this
section or prior to a fee schedule change pursuant to paragraph (b)(2)(ix)(E)(3) of this section.
(x) Statement regarding overdraft credit features. If a covered
separate credit feature accessible by a hybrid prepaid-credit card
as defined in Regulation Z, 12 CFR 1026.61, may be offered at any
point to a consumer in connection with the prepaid account, a statement
that overdraft/credit may be offered, the time period after which
it may be offered, and that fees would apply, using the following
clause or a substantially similar clause: “You may be offered
overdraft/credit after [x] days. Fees would apply.” If no such
credit feature will be offered at any point to a consumer in connection
with the prepaid account, a statement that no overdraft credit feature
is offered, using the following clause or a substantially similar
clause: “No overdraft/credit feature.”
(xi) Statement
regarding registration and FDIC or NCUA insurance. A statement
regarding the prepaid account program’s eligibility for FDIC
deposit insurance or NCUA share insurance, as appropriate, and directing
the consumer to register the prepaid account for insurance and other
account protections, where applicable, as follows:
(A) Account is
insurance eligible and does not have pre-acquisition consumer identification/verification. If a prepaid account program is set up to be eligible for FDIC deposit
or NCUA share insurance, and consumer identification and verification
does not occur before the account is opened, using the following clause
or a substantially similar clause: “Register your card for [FDIC
insurance eligibility] [NCUA insurance, if eligible,] and other protections.”
(B) Account is not insurance eligible and does not have pre-acquisition
consumer identification/verification. If a prepaid account program
is not set up to be eligible for FDIC deposit or NCUA share insurance,
and consumer identification and verification does not occur before
the account is opened, using the following clause or a substantially
similar clause: “Not [FDIC] [NCUA] insured. Register your card
for other protections.”
(C) Account is
insurance eligible and has pre-acquisition consumer identification/verification. If a prepaid account program is set up to be eligible for FDIC deposit
or NCUA share insurance, and consumer identification and verification
occurs for all prepaid accounts within the prepaid program before
the account is opened, using the following clause or a substantially
similar clause: “Your funds are [eligible for FDIC insurance]
[NCUA insured, if eligible].”
(D) Account is
not insurance eligible and has pre-acquisition consumer identification/verification. If a prepaid account program is not set up to be eligible for FDIC
deposit or NCUA share insurance, and consumer identification and verification
occurs for all prepaid accounts within the prepaid account program
before the account is opened, using the following clause or a substantially
similar clause: “Your funds are not [FDIC] [NCUA] insured.”
(E) No consumer identification/verification. If a prepaid account
program is set up such that there is no consumer identification and
verification process for any prepaid accounts within the prepaid account
program, using the following clause or a substantially similar clause:
“Treat this card like cash. Not [FDIC] [NCUA] insured.”
(xii) Statement regarding CFPB Web site. A statement
directing the consumer to a Web site URL of the Consumer Financial
Protection Bureau (cfpb.gov/prepaid) for general information about
prepaid accounts, using the following clause or a substantially similar
clause: “For general information about prepaid accounts, visit
cfpb.gov/prepaid.”
(xiii) Statement
regarding information on all fees and services. A statement directing
the consumer to the location of the long form disclosure required
by paragraph (b)(4) of this section to find details and conditions
for all fees and services. For a financial institution offering prepaid
accounts at a retail location pursuant to the retail location exception
in paragraph (b)(1)(ii) of this section, this statement must also
include a telephone number and a Web site URL that a consumer may
use to directly access, respectively, an oral and an electronic version
of the long form disclosure required under paragraph (b)(4) of this
section. The disclosure required by this paragraph must be made using
the following clause or a substantially similar clause: “Find
details and conditions for all fees and services in [location]”
or, for prepaid accounts offered at retail locations pursuant to paragraph
(b)(1)(ii) of this section, made using the following clause or a substantially
similar clause: “Find details and conditions for all fees and
services inside the package, or call [telephone number] or visit [Web
site].” The Web site URL may not exceed 22 characters and must
be meaningfully named. A financial institution may, but is not required
to, disclose an SMS code at the end of the statement disclosing the
telephone number and Web site URL, if the SMS code can be accommodated
on the same line of text as the statement required by this paragraph.
(xiv) Additional content for payroll card accounts.
(A) Statement regarding wage or salary
payment options. For payroll card accounts, a statement that
the consumer does not have to accept the payroll card account and
directing the consumer to ask about other ways to receive wages or
salary from the employer instead of receiving them via the payroll
card account using the following clause or a substantially similar
clause: “You do not have to accept this payroll card. Ask your
employer about other ways to receive your wages.” Alternatively,
a financial institution may provide a statement that the consumer
has several options to receive wages or salary, followed by a list
of the options available to the consumer, and directing the consumer
to tell the employer which option the consumer chooses using the following
clause or a substantially similar clause: “You have several
options to receive your wages: [list of options available to the consumer];
or this payroll card. Tell your employer which option you choose.”
This statement must be located above the information required by paragraphs
(b)(2)(i) through (iv).
(B) Statement regarding state-required
information or other fee discounts and waivers. For payroll card
accounts, a financial institution may, but is not required to, include
a statement in one additional line of text directing the consumer
to a particular location outside the short form disclosure for information
on ways the consumer may access payroll card account funds and balance
information for free or for a reduced fee. This statement must be
located directly below any statements disclosed pursuant to paragraphs
(b)(3)(i) and (ii) of this section, or, if no such statements are
disclosed, above the statement required by paragraph (b)(2)(x) of
this section.
(3) Short form
disclosure of variable fees and third-party fees and prohibition on
disclosure of finance charges.
(i) General disclosure of variable fees. If
the amount of any fee that is required to be disclosed in the short
form disclosure pursuant to paragraphs (b)(2)(i) through (vii) and
(ix) of this section could vary, a financial institution shall disclose
the highest amount it may impose for that fee, followed by a symbol,
such as an asterisk, linked to a statement explaining that the fee
could be lower depending on how and where the prepaid account is used,
using the following clause or a substantially similar clause: “This
fee can be lower depending on how and where this card is used.”
Except as provided in paragraph (b)(3)(ii) of this section, a financial
institution must use the same symbol and statement for all fees that
could vary. The linked statement must be located above the statement
required by paragraph (b)(2)(x) of this section.
(ii) Disclosure
of variable periodic fee. If the amount of the periodic fee disclosed
in the short form disclosure pursuant to paragraph (b)(2)(i) of this
section could vary, as an alternative to the disclosure required by
paragraph (b)(3)(i) of this section, the financial institution may
disclose the highest amount it may impose for the periodic fee, followed
by a symbol, such as a dagger, that is different from the symbol the
financial institution uses pursuant to paragraph (b)(3)(i) of this
section, to indicate that a waiver of the fee or a lower fee might
apply, linked to a statement in one additional line of text disclosing
the waiver or reduced fee amount and explaining the circumstances
under which the fee waiver or reduction may occur. The linked statement
must be located directly above or in place of the linked statement
required by paragraph (b)(3)(i) of this section, as applicable.
(iii) Single disclosure for like fees. As an
alternative to the two-tier fee disclosure required by paragraphs
(b)(2)(iii), (v), and (vi) of this section and any two-tier fee required
by paragraph (b)(2)(ix) of this section, a financial institution may
disclose a single fee amount when the amount is the same for both
fees.
(iv) Third-party fees in general. Except as
provided in paragraph (b)(3)(v) of this section, a financial institution
may not include any third-party fees in a disclosure made pursuant
to paragraph (b)(2) of this section.
(v) Third-party
cash reload fees. Any third-party fee included in the cash reload
fee disclosed in the short form pursuant to paragraph (b)(2)(iv) of
this section must be the highest fee known by the financial institution
at the time it prints, or otherwise prepares, the short form disclosure
required by paragraph (b)(2) of this section. A financial institution
is not required to revise its short form disclosure to reflect a cash
reload fee change by a third party until such time that the financial
institution manufactures, prints, or otherwise produces new prepaid
account packaging materials or otherwise updates the short form disclosure.
(vi) Prohibition on disclosure of finance charges. A financial institution may not include in a disclosure made pursuant
to paragraphs (b)(2)(i) through (ix) of this section any finance charges
as described in Regulation Z, 12 CFR 1026.4(b)(11), imposed in connection
with a covered separate credit feature accessible by a hybrid prepaid-credit
card as defined in 12 CFR 1026.61.
(4) Long form
disclosure content. In accordance with paragraph (b)(1) of this
section, a financial institution shall provide a disclosure setting
forth the following fees and information for a prepaid account, as
applicable:
(i) Title
for long form disclosure. A heading stating the name of the prepaid
account program and that the long form disclosure contains a list
of all fees for that particular prepaid account program.
(ii) Fees. All fees that may be imposed in connection
with a prepaid account. For each fee, the financial institution must
disclose the amount of the fee and the conditions, if any, under which
the fee may be imposed, waived, or reduced. A financial institution
may not use any symbols, such as an asterisk, to explain conditions
under which any fee may be imposed. A financial institution may, but
is not required to, include in the long form disclosure any service
or feature it provides or offers at no charge to the consumer. The
financial institution must also disclose any third-party fee amounts
known to the financial institution that may apply. For any such third-party
fee disclosed, the financial institution may, but
is not required to, include either or both a statement that the fee
is accurate as of or through a specific date or that the third-party
fee is subject to change. If a third-party fee may apply but the amount
of that fee is not known by the financial institution, it must include
a statement indicating that the third-party fee may apply without
specifying the fee amount. A financial institution is not required
to revise the long form disclosure required by paragraph (b)(4) of
this section to reflect a fee change by a third party until such time
that the financial institution manufactures, prints, or otherwise
produces new prepaid account packaging materials or otherwise updates
the long form disclosure.
(iii) Statement
regarding registration and FDIC or NCUA insurance. The statement
required by paragraph (b)(2)(xi) of this section, together with an
explanation of FDIC or NCUA insurance coverage and the benefit of
such coverage or the consequence of the lack of such coverage, as
applicable.
(iv) Statement regarding overdraft credit features. The statement required by paragraph (b)(2)(x) of this section.
(v) Statement regarding financial institution contact
information. A statement directing the consumer to a telephone
number, mailing address, and Web site URL of the person or office
that a consumer may contact to learn about the terms and conditions
of the prepaid account, to obtain prepaid account balance information,
to request a copy of transaction history pursuant to paragraph (c)(1)(iii)
of this section if the financial institution does not provide periodic
statements pursuant to section 1005.9(b), or to notify the financial
institution when the consumer believes that an unauthorized electronic
fund transfer occurred as required by section 1005.7(b)(2) and paragraph
(d)(1)(ii) of this section.
(vi) Statement
regarding CFPB Web site and telephone number. A statement directing
the consumer to a Web site URL of the Consumer Financial Protection
Bureau (cfpb.gov/prepaid) for general information about prepaid accounts,
and a statement directing the consumer to a Consumer Financial Protection
Bureau telephone number (1-855-411-2372) and Web site URL (cfpb.gov/complaint)
to submit a complaint about a prepaid account, using the following
clause or a substantially similar clause: “For general information
about prepaid accounts, visit cfpb.gov/prepaid. If you have a complaint
about a prepaid account, call the Consumer Financial Protection Bureau
at 1-855-411-2372 or visit cfpb.gov/complaint.”
(vii) Regulation Z disclosures for overdraft credit
features. The disclosures described in Regulation Z, 12 CFR 1026.60(e)(1),
in accordance with the requirements for such disclosures in 12 CFR
1026.60, if, at any point, a covered separate credit feature accessible
by a hybrid prepaid-credit card as defined in 12 CFR 1026.61, may
be offered in connection with the prepaid account. A financial institution
may, but is not required to, include above the Regulation Z disclosures
required by this paragraph a heading and other explanatory information
introducing the overdraft credit feature. A financial institution
is not required to revise the disclosure required by this paragraph
to reflect a change in the fees or other terms disclosed therein until
such time as the financial institution manufactures, prints, or otherwise
produces new prepaid account packaging materials or otherwise updates
the long form disclosure.
(5) Disclosure
requirements outside the short form disclosure. At the time a
financial institution provides the short form disclosure, it must
also disclose the following information: the name of the financial
institution; the name of the prepaid account program; the purchase
price for the prepaid account, if any; and the fee for activating
the prepaid account, if any. In a setting other than in a retail location,
this information must be disclosed in close proximity to the short
form. In a retail location, this information, other than the purchase
price, must be disclosed on the exterior of the access device’s
packaging material. In a retail location, the purchase price must
be disclosed either on the exterior of or in close proximity to the
prepaid account access device’s packaging material.
(6) Form of pre-acquisition disclosures.
(i) General.
(A) Written disclosures. Except as provided in paragraphs (b)(6)(i)(B)
and (C) of this section, disclosures required by paragraph (b) of
this section must be in writing.
(B) Electronic disclosures. Unless provided in written form prior to acquisition pursuant to
paragraph (b)(1)(i) of this section, the disclosures required by paragraph
(b) of this section must be provided in electronic form when a consumer
acquires a prepaid account through electronic means, including via
a website or mobile application, and must be viewable across all screen
sizes. The long form disclosure must be provided electronically through
a website when a financial institution is offering prepaid accounts
at a retail location pursuant to the retail location exception in
paragraph (b)(1)(ii) of this section. Electronic disclosures must
be provided in a manner which is reasonably expected to be accessible
in light of how a consumer is acquiring the prepaid account, in a
responsive form, and using machine-readable text that is accessible
via Web browsers or mobile applications, as applicable, and via screen
readers. Electronic disclosures provided pursuant to paragraph (b)
of this section need not meet the consumer consent and other applicable
provisions of the Electronic Signatures in Global and National Commerce
Act (E-Sign Act) (15 U.S.C. 7001 et seq.).
(C) Oral disclosures. Unless provided in written form prior to acquisition pursuant to
paragraph (b)(1)(i) of this section, disclosures required by paragraphs
(b)(2) and (5) of this section must be provided orally when a consumer
acquires a prepaid account orally by telephone pursuant to the exception
in paragraph (b)(1)(iii) of this section. For prepaid accounts acquired
in retail locations or orally by telephone, the disclosure required
by paragraph (b)(4) of this section provided by telephone pursuant
to paragraph (b)(1)(ii)(C) or (b)(1)(iii)(B) of this section also
must be made orally.
(ii) Retainable
form. Pursuant to section 1005.4(a)(1), disclosures required
by paragraph (b) of this section must be made in a form that a consumer
may keep, except for disclosures provided orally pursuant to paragraphs
(b)(1)(ii) or (iii) of this section, a long form disclosure provided
via SMS as permitted by paragraph (b)(2)(xiii) of this section for
a prepaid account sold at retail locations pursuant to the retail
location exception in paragraph (b)(1)(ii) of this section, and the
disclosure of a purchase price pursuant to paragraph (b)(5) of this
section that is not disclosed on the exterior of the packaging material
for a prepaid account sold at a retail location pursuant to the retail
location exception in paragraph (b)(1)(ii) of this section.
(iii) Tabular format.
(A) General. When a short form disclosure is
provided in writing or electronically, the information required by
paragraphs (b)(2)(i) through (ix) of this section shall be provided
in the form of a table. Except as provided in paragraph (b)(6)(iii)(B)
of this section, the short form disclosure required by paragraph (b)(2)
of this section shall be provided in a form substantially similar
to Model Forms A-10(a) through (d) in appendix A of this part, as
applicable. When a long form disclosure is provided in writing or
electronically, the information required by paragraph (b)(4)(ii) of
this section shall be provided in the form of a table. Sample Form
A-10(f) in appendix A of this part provides an example of the long
form disclosure required by paragraph (b)(4) of this section when
the financial institution does not offer multiple service plans.
(B) Multiple service plans.
(1) Short form disclosure for default
service plan. When a financial institution offers multiple service
plans within a particular prepaid account program and each plan has
a different fee schedule, the information required by paragraphs (b)(2)(i)
through (ix) of this section may be provided in the tabular format
described in paragraph (b)(6)(iii)(A) of this section for the service
plan in which a consumer is initially enrolled by default upon acquiring
the prepaid account.
(2) Short form disclosure for multiple
service plans. As an alternative to disclosing the default service
plan pursuant to paragraph (b)(6)(iii)(B)(1) of this section,
when a financial institution offers multiple service plans within
a particular prepaid account program and each plan has a different
fee schedule, fee disclosures required by paragraphs (b)(2)(i) through
(vii) and (ix) of this section may be provided in the form of a table
with separate columns for each service plan, in a form substantially
similar to Model Form A-10(e) in appendix A of this part. Column headings
must describe each service plan included in the table, using the terms
“Pay-as-you-go plan,” “Monthly plan,” “Annual
plan,” or substantially similar terms; or, for multiple service
plans offering preferred rates or fees for the prepaid accounts of
consumers who also use another non-prepaid service, column headings
must describe each service plan included in the table for the preferred
and non-preferred service plans, as applicable.
(3) Long
form disclosure. The information in the long form disclosure
required by paragraph (b)(4)(ii) of this section must be presented
in the form of a table for all service plans.
(7) Specific formatting requirements for pre-acquisition
disclosures.
(i) Grouping.
(A) Short form disclosure. The information
required in the short form disclosure by paragraphs (b)(2)(i) through
(iv) of this section must be grouped together and provided in that
order. The information required by paragraphs (b)(2)(v) through (ix)
of this section must be generally grouped together and provided in
that order. The information required by paragraphs (b)(3)(i) and (ii)
of this section, as applicable, must be generally grouped together
and in the location described by paragraphs (b)(3)(i) and (ii) of
this section. The information required by paragraphs (b)(2)(x) through
(xiii) of this section must be generally grouped together and provided
in that order. The statement regarding wage or salary payment options
for payroll card accounts required by paragraph (b)(2)(xiv)(A) of
this section must be located above the information required by paragraphs
(b)(2)(i) through (iv) of this section, as described in paragraph
(b)(2)(xiv)(A) of this section. The statement regarding state-required
information or other fee discounts or waivers permitted by paragraph
(b)(2)(xiv)(B) of this section, when applicable, must appear in the
location described by paragraph (b)(2)(xiv)(B) of this section.
(B) Long form disclosure. The information required by paragraph
(b)(4)(i) of this section must be located in the first line of the
long form disclosure. The information required by paragraph (b)(4)(ii)
of this section must be generally grouped together and organized under
subheadings by the categories of function for which a financial institution
may impose the fee. Text describing the conditions under which a fee
may be imposed must appear in the table required by paragraph (b)(6)(iii)(A)
of this section in close proximity to the fee amount. The statements
in the long form disclosure required by paragraphs (b)(4)(iii)
through (vi) of this section must be generally grouped together, provided
in that order, and appear below the information required by paragraph
(b)(4)(ii) of this section. If, pursuant to paragraph (b)(4)(vii)
of this section, the financial institution includes the disclosures
described in Regulation Z, 12 CFR 1026.60(e)(1), such disclosures
must appear below the statements required by paragraph (b)(4)(vi)
of this section.
(C) Multiple service plan disclosure. When
providing a short form disclosure for multiple service plans pursuant
to paragraph (b)(6)(iii)(B)(2) of this section, in lieu of
the requirements in paragraph (b)(7)(i)(A) of this section for grouping
of the disclosures required by paragraphs (b)(2)(i) through (iv) and
(v) through (ix) of this section, the information required by paragraphs
(b)(2)(i) through (ix) of this section must be grouped together and
provided in that order.
(ii) Prominence
and size.
(A) General. All text used to disclose information in the short form or in the
long form disclosure pursuant to paragraphs (b)(2), (b)(3)(i) and
(ii), and (b)(4) of this section must be in a single, easy-to-read
type that is all black or one color and printed on a background that
provides a clear contrast.
(B) Short form disclosure.
(1) Fees
and other information. The information required in the short
form disclosure by paragraphs (b)(2)(i) through (iv) of this section
must appear as follows: Fee amounts in bold-faced type; single fee
amounts in a minimum type size of 15 points (or 21 pixels); two-tier
fee amounts for ATM withdrawal in a minimum type size of 11 points
(or 16 pixels) and in no larger a type size than what is used for
the single fee amounts; and fee headings in a minimum type size of
eight points (or 11 pixels) and in no larger a type size than what
is used for the single fee amounts. The information required by paragraphs
(b)(2)(v) through (ix) of this section must appear in a minimum type
size of eight points (or 11 pixels) and appear in the same or a smaller
type size than what is used for the fee headings required by paragraphs
(b)(2)(i) through (iv) of this section. The information required by
paragraphs (b)(2)(x) through (xiii) of this section must appear in
a minimum type size of seven points (or nine pixels) and appear in
no larger a type size than what is used for the information required
to be disclosed by paragraphs (b)(2)(v) through (ix) of this section.
Additionally, the statements disclosed pursuant to paragraphs (b)(2)(viii)(A)
and (b)(2)(x) of this section and the telephone number and URL disclosed
pursuant to paragraph (b)(2)(xiii) of this section, where applicable,
must appear in bold-faced type. The following information must appear
in a minimum type size of six points (or eight pixels) and appear
in no larger a type size that what is used for the information required
by paragraphs (b)(2)(x) through (xiii) of this section: text used
to distinguish each of the two-tier fees pursuant to paragraphs (b)(2)(iii),
(v), (vi), and (ix) of this section; text used to explain that the
fee required by paragraph (b)(2)(vi) of this section applies “per
call,” where applicable; and text used to explain the conditions
that trigger an inactivity fee and that the fee applies monthly or
for the applicable time period, pursuant to paragraph (b)(2)(vii)
of this section.
(2) Variable fees. The symbols
and corresponding statements regarding variable fees disclosed in
the short form pursuant to paragraphs (b)(3)(i) and (ii) of this section,
when applicable, must appear in a minimum type size of seven points (or
nine pixels) and appear in no larger a type size than what is used
for the information required by paragraphs (b)(2)(x) through (xiii)
of this section. A symbol required next to the fee amount pursuant
to paragraphs (b)(3)(i) and (ii) of this section must appear in the
same type size or pixel size as what is used for the corresponding
fee amount.
(3) Payroll card account additional content. The statement regarding wage or salary payment options for payroll
card accounts required by paragraph (b)(2)(xiv)(A) of this section,
when applicable, must appear in a minimum type size of eight points
(or 11 pixels) and appear in no larger a type size than what is used
for the fee headings required by paragraphs (b)(2)(i) through (iv)
of this section. The statement regarding state-required information
and other fee discounts or waivers permitted by paragraph (b)(2)(xiv)(B)
of this section must appear in the same type size used to disclose
variable fee information pursuant to paragraph (b)(3)(i) and (ii)
of this section, or, if none, the same type size used for the information
required by paragraphs (b)(2)(x) through (xiii) of this section.
(C) Long form disclosure. The long form disclosure
required by paragraph (b)(4) of this section must appear in a minimum
type size of eight points (or 11 pixels).
(D) Multiple service
plan short form disclosure. When providing a short form disclosure
for multiple service plans pursuant to paragraph (b)(6)(iii)(B)(2) of this section, the fee headings required by paragraphs (b)(2)(i)
through (iv) of this section must appear in bold-faced type. The information
required by paragraphs (b)(2)(i) through (xiii) of this section must
appear in a minimum type size of seven points (or nine pixels), except
the following must appear in a minimum type size of six points (or
eight pixels) and appear in no larger a type size than what is used
for the information required by paragraphs (b)(2)(i) through (xiii)
of this section: Text used to distinguish each of the two-tier fees
required by paragraphs (b)(2)(iii) and (v) of this section; text used
to explain that the fee required by paragraph (b)(2)(vi) of this section
applies “per call,” where applicable; text used to explain
the conditions that trigger an inactivity fee pursuant to paragraph
(b)(2)(vii) of this section; and text used to distinguish that fees
required by paragraphs (b)(2)(i) and (vii) of this section apply monthly
or for the applicable time period.
(iii) Segregation. Short form and long form disclosures required by paragraphs (b)(2)
and (4) of this section must be segregated from other information
and must contain only information that is required or permitted for
those disclosures by paragraph (b) of this section.
(8) Terminology of pre-acquisition disclosures. Fee names and other terms must be used consistently within and across
the disclosures required by paragraph (b) of this section.
(9) Prepaid accounts acquired in foreign languages.
(i) General. A financial institution must provide
the pre-acquisition disclosures required by paragraph (b) of this
section in a foreign language, if the financial institution uses that
same foreign language in connection with the acquisition of a prepaid
account in the following circumstances:
(A) The financial institution
principally uses a foreign language on the prepaid account packaging
material;
(B) The financial
institution principally uses a foreign language to advertise, solicit,
or market a prepaid account and provides a means in the advertisement,
solicitation, or marketing material that the consumer uses to acquire
the prepaid account by telephone or electronically; or
(C) The financial institution
provides a means for the consumer to acquire a prepaid account by
telephone or electronically principally in a foreign language. However,
foreign language pre-acquisition disclosures are not required for
payroll card accounts and government benefit accounts where the foreign
language is offered by telephone via a real-time language interpretation
service provided by a third party or by the employer or government
agency on an informal or ad hoc basis as an accommodation to prospective
payroll card account or government benefit account holders.
(ii) Long form disclosures in English upon request. A financial institution required to provide pre-acquisition disclosures
in a foreign language pursuant to paragraph (b)(9)(i) of this section
must also provide the information required to be disclosed in its
pre-acquisition long form disclosure pursuant to paragraph (b)(4)
of this section in English upon a consumer’s request and on
any part of the Web site where it discloses this information in a
foreign language.
(1) Periodic
statement alternative. A financial institution need not furnish
periodic statements required by section 1005.9(b) if the financial
institution makes available to the consumer:
(i) The
consumer’s account balance, through a readily available telephone
line;
(ii) An electronic
history of the consumer’s account transactions, such as through
a Web site, that covers at least 12 months preceding the date the
consumer electronically accesses the account; and
(iii) A written history of the consumer’s
account transactions that is provided promptly in response to an oral
or written request and that covers at least 24 months preceding the
date the financial institution receives the consumer’s request.
(2) Periodic statement alternative for unverified
prepaid accounts. For prepaid accounts that are not payroll card
accounts or government benefit accounts, a financial institution is
not required to provide a written history of the consumer’s
account transactions pursuant to paragraph (c)(1)(iii) of this section
for any prepaid account for which the financial institution has not
completed its consumer identification and verification process as
described in paragraph (e)(3)(i)(A) through (C) of this section.
(3) Information included on electronic or written
histories. The history of account transactions provided under
paragraphs (c)(1)(ii) and (iii) of this section must include the information
set forth in section 1005.9(b).
(4) Inclusion
of all fees charged. A financial institution must disclose the
amount of any fees assessed against the account, whether for electronic
fund transfers or otherwise, on any periodic statement provided pursuant
to section 1005.9(b) and on any history of account transactions provided
or made available by the financial institution.
(5) Summary totals
of fees. A financial institution must display a summary total
of the amount of all fees assessed by the financial institution against
the consumer’s prepaid account for the prior calendar month
and for the calendar year to date on any periodic statement provided
pursuant to section 1005.9(b) and on any history of account transactions
provided or made available by the financial institution.
(1) Effective
date generally. Except as provided in paragraphs (h)(2) and (3)
of this section, the requirements of this subpart, as modified by
this section, apply to prepaid accounts as defined in section 1005.2(b)(3),
including government benefit accounts subject to section 1005.15,
beginning April 1, 2019.
(2) Early disclosures.
(i) Exception for disclosures on existing prepaid
account access devices and prepaid account packaging materials. The disclosure requirements of this subpart, as modified by this
section, shall not apply to any disclosures that are provided, or
that would otherwise be required to be provided, on prepaid account
access devices, or on, in, or with prepaid account packaging materials
that were manufactured, printed, or otherwise produced in the normal
course of business prior to April 1, 2019.
(ii) Disclosures
for prepaid accounts acquired on or after April 1, 2019. This
paragraph applies to prepaid accounts acquired by consumers on or
after April 1, 2019 via packaging materials that were manufactured,
printed, or otherwise produced prior to April 1, 2019.
(A) Notices of certain changes. If a financial
institution has changed a prepaid account’s terms and conditions
as a result of paragraph (h)(1) of this section taking effect such
that a change-in-terms notice would have been required under section
1005.8(a) or paragraph (f)(2) of this section for existing customers,
the financial institution must provide to the consumer a notice of
the change within 30 days of obtaining the consumer’s contact
information.
(B) Initial disclosures. The financial institution
must mail or deliver to the consumer initial disclosures pursuant
to section 1005.7 and paragraph (f)(1) of this section that have been
updated as a result of paragraph (h)(1) of this section taking effect,
within 30 days of obtaining the consumer’s contact information.
(iii) Disclosures for prepaid accounts acquired before
April 1, 2019. This paragraph applies to prepaid accounts acquired
by consumers before October 1, 2017. If a financial institution has
changed a prepaid account’s terms and conditions as a result
of paragraph (h)(1) of this section taking effect such that a change-in-terms
notice would have been required under section 1005.8(a) or paragraph
(f)(2) of this section for existing customers, the financial institution
must provide to the consumer a notice of the change at least 21 days
in advance of the change becoming effective, provided the financial
institution has the consumer’s contact information. If the financial
institution obtains the consumer’s contact information less
than 30 days in advance of the change becoming effective or after
it has become effective, the financial institution
is permitted instead to notify the consumer of the change in accordance
with the timing requirements set forth in paragraph (h)(2)(ii)(A)
of this section.
(iv) Method of providing notice to consumers. With respect to prepaid accounts governed by paragraph (h)(2)(ii)
or (iii) of this section, if a financial institution has not obtained
a consumer’s consent to provide disclosures in electronic form
pursuant to the Electronic Signatures in Global and National Commerce
Act (E-Sign Act) (15 U.S.C. 7001 et seq.), or is not otherwise
already mailing or delivering to the consumer written account-related
communications within the respective time periods specified in paragraphs
(h)(2)(ii) or (iii) of this section, the financial institution may
provide to the consumer a notice of a change in terms and conditions
pursuant to paragraph (h)(2)(ii) or (iii) of this section or required
or voluntary updated initial disclosures as a result of paragraph
(h)(1) of this section taking effect in electronic form without regard
to the consumer notice and consent requirements of section 101(c)
of the E-Sign Act.
(3) Account information
not available on April 1, 2019.
(i) Electronic and written account transaction history. If, on April 1, 2019, a financial institution does not have readily
accessible the data necessary to make available 12 months of electronic
account transaction history pursuant to paragraph (c)(1)(ii) of this
section or to provide 24 months of written account transaction history
upon request pursuant to paragraph (c)(1)(iii) of this section, the
financial institution may make available or provide such histories
using the data for the time period it has until the financial institution
has accumulated the data necessary to comply in full with the requirements
set forth in paragraphs (c)(1)(ii) and (iii) of this section.
(ii) Summary totals of fees. If, on April 1, 2019, the financial
institution does not have readily accessible the data necessary to
calculate the summary totals of the amount of all fees assessed by
the financial institution on the consumer’s prepaid account
for the prior calendar month and for the calendar year to date pursuant
to paragraph (c)(5) of this section, the financial institution may
display the summary totals using the data it has until the financial
institution has accumulated the data necessary to display the summary
totals as required by paragraph (c)(5) of this section.
