(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 1005.7, 1005.8, and 1005.9
of this part that are within the purview of its relationship with
the consumer. The service provider need not furnish the periodic statement
required by section 1005.9(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 1005.9(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
1005.9(b)(1), in the format prescribed by the automated clearinghouse
(ACH) 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 1005.6(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 1005.6(b)(3) and 1005.11(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 1005.11(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 1005.11(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 1005.11(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 1005.11(d)(2)(ii).
If an overdraft results, the service provider shall promptly reimburse
the account-holding institution in the amount of the overdraft.
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(c) Compliance
by account-holding institution. The account-holding institution
need not comply with the requirements of the Act and this part 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 1005.11(d)(2)(ii).
