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Inactive Financial Institution Letters


ELECTRONIC FUND TRANSFERS

FIL-25-2001
March 23, 2001

TO: CHIEF EXECUTIVE OFFICER AND COMPLIANCE OFFICER
SUBJECT: Final Rule Amending Regulation E (Electronic Fund Transfer Act)

The Board of Governors of the Federal Reserve System published in the Federal Register the attached final rule amending Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The rule took effect on March 9, 2001. However, compliance with the amendments is not mandatory until October 1, 2001.

The final rule implements amendments to the EFTA contained in the Gramm-Leach-Bliley Act (GLBA) that require the disclosure of certain fees associated with automated teller machine (ATM) transactions. The amendments require ATM operators that impose a fee for providing electronic fund transfer services to disclose this fact in a prominent and conspicuous location on or at the ATM where the electronic fund transfer is initiated. Operators must also disclose that a fee will be imposed and the amount of the fee either on the machine's screen or on a paper notice before the consumer is committed to completing the transaction. No fee may be imposed unless proper notice is provided and the consumer elects to complete the transaction. When the consumer contracts for an electronic fund transfer service, the financial institution holding the consumer's account must provide initial disclosures, including a notice that a fee may be imposed by an ATM owned by another entity.

For more information, please contact Louise Kotoshirodo Kramer, Review Examiner in the FDIC's Division of Compliance and Consumer Affairs, at (202) 942-3599.

Stephen M. Cross
Director

Attachment: March 6, 2001, Federal Register, pages 13409-13413
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Distribution: FDIC-Supervised Banks (Commercial and Savings)

Last Updated 3/23/2001 communications@fdic.gov