Electronic Fund Transfer Act (Regulation E)

Overview

The Electronic Fund Transfer Act (EFTA) of 1978, 15 U.S.C. § 1693 et seq., protects individual consumers engaging in electronic fund transfers (EFTs) and remittance transfers, including:

  • Transfers through automated teller machines (ATMs);
  • Point-of-sale (POS) terminals;
  • Automated clearinghouse (ACH) systems;
  • Telephone bill-payment plans where periodic or recurring transfers are contemplated;
  • Remote banking programs; and
  • Remittance transfers.

EFTA is implemented through Regulation E, which includes official interpretations. State and Federal Credit Unions are subject to the provisions of Regulation E. NCUA is not the primary enforcement authority for ECOA in federally-insured, state-chartered credit unions (FISCUs). If you find ECOA violations at a FISCU and you feel the State Supervisory Authority is not properly addressing the issue, contact your supervisor.

In 2009, the Federal Reserve Board (Board) amended Regulation E to prohibit overdraft fees for ATM and one-time debit card transactions, unless the consumer opts in or affirmatively consents to the overdraft services. The Board also amended Regulation E to restrict fees and expiration dates on gift cards, and to require that gift card terms be stated clearly.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) transferred rulemaking authority under EFTA from the Board of Governors of the Federal Reserve to the Consumer Financial Protection Bureau (CFPB). The Dodd-Frank Act also amended EFTA and created a new system of consumer protections for remittance transfers that customers in the United States send to individuals and businesses in foreign countries.

In December 2011, CFPB restated Regulation E at 12 CFR Part 1005. In February 2012, CFPB added subpart B (Requirements for Remittance Transfers) to Regulation E to implement the remittance protections in the Dodd-Frank Act.

Full text of EFTA – Regulation E can be found here.


Associated Risks

Compliance risk can occur when the credit union fails to implement the necessary controls to comply with Regulation E.

Transaction risk can occur when the credit union does not have adequate internal controls in place and as a result suffers a loss.

Reputation risk can occur when the credit union incurs losses or receives decreased member confidence as a result of failure to comply with Regulation E.

Strategic risk can occur when the board of directors fails to perform necessary due diligence in reviewing existing and prospective products and services for compliance with Regulation E.

Examination Objectives

  • Determine the credit union’s compliance with Regulation E.
  • Assess the quality of the credit union’s compliance risk management systems and its policies and procedures for implementing Regulation E.
  • Determine how reliable the credit union’s internal controls and procedures are for monitoring its compliance with Regulation E.
  • As appropriate, direct corrective action when violations of law are identified or when the credit union’s policies or internal controls are deficient.

Examination Procedures

These examination procedures are divided into three sections:

  • Section I covers management and policy-related procedures for credit unions.
  • Section II covers electronic fund transfers that credit unions conduct.
  • Section III applies to remittance transfer providers (including credit unions).

Each examination should be risk-focused and may not require completion of all three sections.

Section I – Management and Policy-Related Examination Procedures

  1. Through a review of all available information (e.g., board minutes, management reports, monitoring reports, etc.) and discussions with management, determine whether the board and management have set clear expectations about compliance with Regulation E, not only within the credit union but also with key business partners, including agents, correspondent banks, and software providers, to the extent relevant.
  2. Through a review of all available information (e.g., written policies and procedures, management’s self-assessments, member complaints, prior examination reports, and any compliance audit material, including work papers and reports), determine whether:
    1. There are any weaknesses or other risks in the business model.
    2. The scope of the self-assessments/audits address all provisions of Regulation E, as applicable.
    3. The scope of the self-assessments/audits address all key business processes and functions, including those carried out by third-party service providers or key business partners, as appropriate.
    4. Management has taken corrective actions to follow up on previously identified deficiencies.
    5. As applicable, testing includes risk-based samples covering product types and decision centers.
    6. There is an audit trail that supports the findings and conclusions of the work performed.
    7. Significant deficiencies and their causes are included in reports to management and/or to the Board of Directors.
    8. The frequency of review is appropriate.
  3. Through discussions with management and review of available information, determine whether the credit union’s internal controls are adequate to ensure compliance with Regulation E. Consider among other things:
    1. Organizational charts;
    2. Process flowcharts;
    3. Policies and procedures;
    4. Account (if applicable) and transaction documentation;
    5. Checklists; and
    6. Computer program documentation.
  4. Through a review of the credit union’s training materials and discussions with management, determine whether:
    1. The credit union provides appropriate training to employees and other persons responsible for Regulation E compliance and operational procedures.
    2. The training is comprehensive and covers the sections of Regulation E that apply to the credit union’s product offerings and operations including, to the extent appropriate, functions carried out by third-party service providers or other business partners, such as agents and correspondent banks.

Section II – Subpart A

Based on the materials reviewed within Section I, complete Section II, as applicable, to determine the credit union’s compliance with Regulation E.

Transaction-Related Examination Procedures

Conduct transaction testing, using the following examination procedures:

  1. Obtain and review copies of the following:
    1. Disclosure forms;
    2. Advertising and scripts for overdraft opt-ins;
    3. Account agreements;
    4. Procedural manuals and written policies;
    5. Merchant agreements;
    6. ATM receipts and periodic statements;
    7. Error resolution statements/files;
    8. Form letters used in case of errors or questions concerning an account;
    9. Any agreements with third parties allocating compliance responsibilities; and
    10. Member complaint files.

Policies and Procedures

  1. Determine the extent and adequacy of the credit union’s policies, procedures, and practices for ensuring compliance with the regulation. In particular, verify that:
    1. Access devices are issued in compliance with the regulation (§1005.5(b)).
    2. Required disclosures are given when the account is opened or before the first EFT (§§1005.4 and 1005.7(c)).
    3. Unauthorized transfer claims are processed in compliance with the regulation (§§ 1005.6 and 1005.11).
    4. Liability for unauthorized transfer claims is assessed in compliance with the regulation (§1005.6).
    5. Negligence is not a factor in determining member liability. The deposit agreement may not impose greater liability than Regulation E allows, but may provide for less (§1005.6).
    6. Preauthorized debits and credits comply with the regulation (§1005.10).

Disclosures, Notices, Receipts, Periodic Statements, and Preauthorized Transfers

  1. If the credit union has changed the terms or conditions of initial disclosures for EFT services since the preceding examination, and the changes required a written notice to the member, determine that the credit union provided the proper notice in a timely manner (§ 1005.8(a)).
  2. Review a sample of periodic statements for each type of account in which EFTs occur to determine if they contain enough information for the member to identify transactions adequately and that they otherwise comply with regulatory requirements (§ 1005.9).
  3. Verify that the credit union does not require compulsory use of EFTs, except as authorized (§ 1005.10(e)).
  4. For unauthorized transfers, lost or stolen ATM cards, EFT member complaints, and their respective periodic statements, determine whether:
    1. The credit union is in compliance with its error resolution procedures to isolate any apparent deficiencies in its operations to ensure it follows its policies for unauthorized transfers (§§ 1005.6 and 1005.11).
    2. The credit union investigates alleged errors and notifies members of the results within permissible time frames and, when appropriate, provisionally re-credits affected accounts (§ 1005.11(c)).
    3. The credit union follows regulatory procedures after it completes its investigation and determines either that an error occurred (§ 1005.11(c)(1)) or not (§ 1005.11(d)).
  5. Review ATM and point-of-sale transfer receipts to determine whether they provide a clear description of the transaction (§ 1005.9(a)).
  6. Determine that the credit union keeps records of compliance for no less than two years from the date the credit union must make disclosures or take action (§ 1005.13(b)).

Payroll Cards and ATMs

  1. If the credit union maintains payroll card accounts and does not provide periodic statements under § 1005.9(b) for these accounts, verify that the credit union makes the account balance available by telephone, electronic history, and (upon request) provides a written history of account transactions (§ 1005.18(b)).
  2. If the credit union maintains payroll card accounts, verify that it complies with the requirements for required initial disclosures, error resolution notices, limitations on liability, and error resolution procedures (§ 1005.18(c)).
  3. If the credit union operates one or more ATMs for which it charges a fee for use, determine that it provides notice of the fee and the amount of the fee on the ATM screen or on paper before the member is committed to paying the fee (§ 1005.16).

Overdrafts

  1. Determine that the credit union holding a member’s account does not assess a fee or charge on a member’s account for paying an ATM or one-time debit card transaction using the credit union’s overdraft service, [1] unless the credit union:
    1. Provides the member with a notice in writing (or if the member agrees, electronically) that is segregated from all other information and describes the credit union’s overdraft service;
    2. Provides a reasonable opportunity for the member to affirmatively consent, or opt-in, to the service for ATM and one-time debit card transactions;
    3. Obtains the member’s affirmative consent, or opt-in, to the credit union’s payment of ATM or one-time debit card transactions; and
    4. Provides the member with confirmation of the member's consent in writing (or if the member agrees, electronically), which includes a statement informing the member of the right to revoke the consent. (§1005.17(b)(1))

Note: A credit union does not have to meet the notice requirements above if it has a policy and practice of declining to authorize and pay ATM or one-time debit card transactions when it has a reasonable belief at the time of the authorization request that the member does not have enough funds available to cover the transaction. However, it is still prohibited from charging fees for paying an ATM or one-time debit transaction overdraft (§ 1005.17, and Official Interpretation § 1005.17(b)(1)(iv)).

  1. Determine that in assessing overdraft fees for members who have not opted-in, the credit union charges fees only for negative balances, daily or sustained overdrafts, or similar fees, when the negative balance is due in whole or in part to checks, automated clearing house (ACH) or other transactions not subject to the fee prohibition and that the fee is assessed based on the date when the check is paid into overdraft, not the date of the ATM or one-time debit transaction (Official Interpretation § 1005.17(b)(9)).
  2. Determine that the credit union does not:
    1. Condition the payment of overdrafts for checks, ACH transactions, and other types of transactions on the member’s affirmative consent to pay ATM and one-time debit card transactions under the credit union's overdraft service; or
    2. Decline to pay checks, ACH transactions, and other types of transactions that overdraw the member’s account because the member has not affirmatively consented to the overdraft service for ATM and one-time debit card transactions (§ 1005.17(b)(2)).
  3. Determine that the credit union provides members who do not affirmatively consent to the overdraft service for ATM and one-time debit card transactions with the same account terms, conditions, and features provided to members who affirmatively consent, except for the overdraft service for ATM and one-time debit card transactions (§ 1005.17(b)(3)).
  4. Ensure that the notice required by § 1005.17(b)(1)(i) is substantially similar to Model Form A–9 (Model Consent Form for Overdraft Services), includes all applicable items in the following list, and does not contain any additional information:
    1. Overdraft service. A brief description of the credit union’s overdraft service and the types of transactions for which a fee or charge for paying an overdraft may be imposed, including ATM and one-time debit card transactions.
    2. Fees imposed. The dollar amount of any fees or charges the credit union assesses for paying ATM or one-time debit card transactions under the overdraft service, including any daily or other overdraft fees. If the credit union determines the amount of the fee based on the number of times the member has overdrawn the account, the amount of the overdraft, or other factors, the credit union must disclose the maximum fee that it may impose.
    3. Limits on fees charged. The maximum number of overdraft fees or charges that may be assessed per day, or if applicable, that there is no limit.
    4. Disclosure of opt-in right. An explanation of the member’s right to affirmatively consent to the credit union's payment of overdrafts for ATM and one-time debit card transactions under its overdraft service, including the methods the member may use to consent; and
    5. Alternative plans for covering overdrafts. If the credit union offers both a line of credit subject to Regulation Z (12 CFR Part 1026) and a service that transfers funds from another account of the member held at the credit union to cover overdrafts, the credit union must state in its opt-in notice that both alternative plans are offered. If the credit union offers one, but not the other, it must state in its opt-in notice the alternative plan that it offers. If the credit union does not offer either plan, it should omit the reference to the alternative plans. If the credit union offers additional alternatives for paying overdrafts, it may (but is not required to) disclose those alternatives.
      (12 CFR 1005.17(d) and Official Interpretations §§ 1005.17(d)(1) through 1005.17(d)(5).

Note: Permitted modifications and additional content. If applicable, the credit union may modify the content required by § 1005.17(d) to indicate that the member has the right to opt-in to, or opt-out of, the payment of overdrafts under the credit union’s overdraft service for other types of transactions, such as checks, ACH transactions, or automatic bill payments; to provide a means for the member to exercise this choice; and to disclose the associated returned item fee and that additional merchant fees may apply. The credit union may also disclose the member’s right to revoke consent. The response portion of Model Form A-9 may be tailored to the methods offered for opting-in, and may include reasonable methods to identify the account, such as a bar code.

  1. Determine that, when two or more members jointly hold an account, the credit union treats the affirmative consent of any of them as affirmative consent for the account, and treats a revocation of affirmative consent by any of them as revocation of consent for that account (§ 1005.17(e)).
  2. Ensure that a member may affirmatively consent to the credit union's overdraft service at any time in the manner described in the credit union’s (§ 1005.17(b)(1)(i)) notice, and that a member may revoke consent at any time in the manner made available to the member for providing consent (§ 1005.17(f)).
  3. Determine that the credit union implements member revocation of consent as soon as reasonably practicable (§ 1005.17(f)).
  4. Determine that a member’s affirmative consent to the credit union's overdraft service is effective until revoked, or until the credit union terminates the service (§ 1005.17(g)).
  5. Determine that the credit union's overdraft protection program incorporates regulatory agency guidance as applicable.

Gift Card Disclosures

  1. Determine that the disclosures required by the sections listed below are made on the certificate or card, or in the case of a loyalty, award, or promotional gift card, on the card, code, or other device:
    1. §1005.20(a)(4)(iii) (loyalty, award, or promotional gift card);
    2. §1005.20(d)(2) (dormancy, inactivity, or service fees);
    3. §1005.20(e)(3) (expiration date or phone and web regarding replacement); and
    4. §1005.20(f)(2) (phone and web regarding fees).

Note: A disclosure made in an accompanying terms-and-conditions document, on packaging surrounding a certificate or card, or on a sticker or other label affixed to the certificate or card does not constitute disclosure on the certificate or card.

If the certificate or card is electronic, determine that disclosures are provided electronically on the certificate or card provided to the member.

If an issuer provides a code or confirmation to a member orally, determine that the issuer provides to the member a written or electronic copy of the code or confirmation promptly, and the applicable disclosures are provided on the written copy of the code or confirmation (§ 1005.20(c)(4)).

  1. Determine that the following are stated, as applicable, clearly and conspicuously on the gift certificate, store gift card, or general-use prepaid card:
    1. The amount of any dormancy, inactivity, or service fee that may be charged;
    2. How often the fee may be assessed; and
    3. That the fee may be assessed for inactivity. (§ 1005.20(d)(2))
  2. Determine that the following disclosures and information are provided in connection with a gift certificate, store gift card, or general-use prepaid card as applicable. For each type of fee that may be imposed in connection with the certificate or card (other than a dormancy, inactivity, or service fee (discussed above)), the following information must be provided on or with the certificate or card:
    1. The type of fee;
    2. The amount of the fee (or an explanation of how it will be determined);
    3. The conditions under which the fee may be imposed; and
    4. A toll-free number, and if one is maintained, a website that a member may use to obtain information about the fees described in paragraphs § 1005.20(d)(2) and § 1005.20(f)(1) (described immediately above).
      1005.20(f))
  3. If an expiration date applies to a certificate or card, determine that the following disclosures are provided on the certificate or card, as applicable:
    1. The expiration date for the underlying funds or, if the underlying funds do not expire, that fact;
    2. A toll-free telephone number and, if one is maintained, a website that a member may use to obtain a replacement certificate or card after the certificate or card expires if the underlying funds may be available; and
    3. Except where a non-reloadable certificate or card has an expiration date that is at least seven years from the date of manufacture, a statement, disclosed with equal prominence and in close proximity to the certificate or card expiration date, that:
      1. The certificate or card expires, but the underlying funds either do not expire or expire later than the certificate or card, and
      2. The member may contact the issuer for a replacement card.
        1005.20(e)(3))
  4. Determine that a loyalty, award, or promotional gift card sold or issued by the examined credit union includes the following disclosures, as applicable:
    1. A statement on the front of the card, code, or other device, indicating that the card, code, or other device is issued for loyalty, award, or promotional purposes;
    2. The expiration date for the underlying funds on the front of the card, code, or other device;
    3. The amount of any fees that may be imposed in connection with the card, code, or other device, and the conditions under which they may be imposed. This disclosure must be provided on or with the card, code, or other device; and
    4. A toll-free telephone number and, if one is maintained, a website that a member may use to obtain fee information on the card, code, or other device.
      1005.20(a)(4)(iii))
  5. Determine that a person (the examined credit union) that issues or sells a gift certificate, store gift card, or general-use prepaid card discloses to the member, before purchase, the information required by § 1005.20(d)(2) (dormancy, inactivity, or service fees), § 1005.20(e)(3) (expiration date or phone and web regarding replacement), and § 1005.20(f)(1) (other fees). (§ 1005.20(c)(3))
  6. Determine that the fees, terms, and conditions of expiration that must be disclosed before purchase are not changed after purchase. (§ 1005.20(c)(3))
  7. Determine that no person (the examined credit union) imposes a dormancy, inactivity, or service fee on a gift certificate, store gift card, or general-use prepaid card, unless:
    1. There has been no activity on the certificate or card in the one-year period ending on the date the fee is imposed;
    2. Required disclosures are provided; and
    3. Not more than one dormancy, inactivity, or service fee is imposed in any given calendar month. (§ 1005.20(d))
  8. Determine that the person (the examined credit union) does not sell or issue a gift certificate, store gift card, or general-use prepaid card with an expiration date unless:
    1. Required expiration date disclosures are provided on the certificate or card, as applicable;
    2. It has established policies and procedures to provide members with a reasonable opportunity to purchase a certificate or card with at least five years remaining until the expiration date;
    3. The expiration date for the underlying funds is at least the later of:
      1. Five years after the date the gift certificate was initially issued, or the date on which funds were last loaded to a store gift card or general-use prepaid card; or
      2. The certificate or card expiration date, if any; and
    4. No fee or charge is imposed on the cardholder for replacing the gift certificate, store gift card, or general-use prepaid card or for providing the certificate or card holder with the remaining balance before the funds expiration date, unless the certificate or card has been lost or stolen. (§ 1005.20(e))

Section III – Subpart B – Requirements for Remittance Transfers

If a credit union provides remittance transfers in its “normal course of business,” it is a remittance transfer provider (sometimes abbreviated to “provider” in this discussion) subject to the rule and should be examined based on the following procedures. [2]

Transaction-Related Examination Procedures

As applicable, conduct transaction testing using the following examination procedures:

  1. Obtain and review all available information as it relates to the credit union’s remittance program. Examples of this include but are not limited to:
    1. List of divisions or departments involved in offering or providing remittance transfers (e.g., retail, high net worth, prepaid cards, bill payment, online or mobile banking, foreign exchange and/or treasury departments);
    2. Remittance transfer products offered;
    3. Disclosure forms in all languages (as applicable);
    4. List of foreign countries to which the credit union sends remittance transfers, if available;
    5. List of all foreign currencies in which remittance transfers the credit union sent may be received where there are limitations on the currencies, and identification of the currencies for which the provider controls the exchange rate;
    6. List of all third-party service providers or business partners involved in remittance transfers, including direct correspondent banks, payment networks, payment processors, software providers, foreign currency providers, agents in the United States or abroad, or similar entities;
    7. Locations of U.S. and foreign agents;
    8. Applicable documentation related to remittance transfer operations (e.g., transaction logs, agent/correspondent agreements, advertising and marketing material including any done in foreign languages, and documentation regarding calculation or estimates of fees, taxes, exchange rates, and dates included on disclosures);
    9. Procedural manuals and written policies;
    10. Error resolution files;
    11. Form letters used for errors or questions concerning remittance transfers (including those in foreign languages);
    12. Agreements with third parties allocating compliance responsibilities; and
    13. Member complaint files.

General Form of Disclosures § 1005.31

  1. Obtain and review a sample of the credit union’s disclosure forms for its various remittance transfer products. Include disclosures as provided for various products and through various channels (e.g., in person, through a website, by telephone, through a mobile phone application, text message, online bill payment). Verify that:
    1. Disclosures are in the appropriate form, and are clear and conspicuous;
    2. Written and electronic disclosures are in a retainable form (except where expressly permitted not to be retainable);
    3. Pre-payment disclosures match figures disclosed on receipts and match those actually applied to the transfer;
    4. The credit union’s policy for providing oral disclosures is appropriate for the associated transactions;
    5. Scripts used for oral disclosures comply with the regulation;
    6. Disclosures comply with the format requirements for grouping like items, proximity, prominence and size, and segregation from other information; and
    7. Disclosure of amounts required to be disclosed under § 1005.31(b)(1), (2), and (3), use the appropriate terms (e.g., transfer amount, transfer taxes, currency) or substantially similar terms.
  2. If applicable, determine whether the credit union complies with the foreign language disclosure requirements outlined in § 1005.31(g).

Pre-Payment Disclosures § 1005.31(b)(1)

  1. Based on a review of the credit union’s policies and, if appropriate, sampled transactions, determine that the credit union appropriately categorizes third-party fees as covered or non-covered.
  2. Based on a review of the credit union’s policies on pre-payment disclosures and, if appropriate, sampled pre-payment disclosures and related documentation, determine whether the credit union appropriately calculates and discloses:
    1. In the currency in which the remittance transfer is funded:
      1. The amount that will be transferred to the designated recipient, using the term, “Transfer Amount” or a substantially similar term;
      2. Fees imposed and taxes collected on the remittance transfer by the provider, using the terms, “Transfer Fees” and “Transfer Taxes” or substantially similar terms; and
      3. The total amount of the transaction, using the term, “Total” or a substantially similar term;
    2. The exchange rate the credit union uses for the remittance transfer, using the term “Exchange Rate” or a substantially similar term;
    3. In the currency in which the funds will be received by the designated recipient:
      1. The transfer amount, but only if covered third-party fees are imposed, using the term “Transfer Amount” or a substantially similar term;
      2. Any covered third-party fees imposed on the remittance transfer, using the term “Other Fees” or a substantially similar term;
      3. The amount that the designated recipient will receive (total of the transaction minus covered third-party fees), using the term “Total to Recipient” or a substantially similar term; and
    4. If applicable, a statement that non-covered third-party fees or taxes collected on the remittance transfer may apply to the remittance transfer and result in the designated recipient receiving less than the amount disclosed;
    5. If the credit union includes in the statement under (c)(iii) above the optional estimated disclosure of applicable non-covered third-party fees or taxes, determine if the estimates are based on reasonable sources, and are disclosed in the currency in which the transfer is to be received.

Note: The exchange rate used to calculate the amounts under (c) is before any rounding.

Receipt Disclosures § 1005.31(b)(2)

  1. Review policies on receipt disclosures, sample receipts, and related documentation to determine whether the credit union appropriately calculates and discloses:
    1. Information disclosed in the pre-payment disclosure;
    2. The date in the foreign country on which funds will be available to the designated recipient, using the term “Date Available” or a substantially similar term;
    3. The name and, if provided by the sender, the telephone number and/or address of the designated recipient, using the term “Recipient” or a substantially similar term;
    4. A statement about the rights of the sender regarding the resolution of errors and cancellation;
    5. The name, telephone number(s), and website of the remittance transfer provider; and
    6. A statement that the sender can contact the Consumer Financial Protection Bureau (“CFPB”), NCUA, and if applicable, the state agency that licenses or charters the remittance transfer provider with respect to the remittance transfer and for questions or complaints about the remittance transfer provider, as well as their telephone number(s), and website addresses.

Note: For any remittance transfer scheduled by the sender at least three business days before the date of the transfer, the statement about the cancellation rights of the sender must state that the sender must request the cancellation at least three business days before the next scheduled transfer. The statement must also note that the request must enable the credit union to identify the sender’s contact information and the particular transfer to be cancelled.

Combined Disclosures § 1005.31(b)(3)

Note: Complete this section only if the credit union provides combined disclosures as an alternative to the pre-payment and receipt disclosures.

  1. Review policies on combined disclosures, sample disclosures, and related documentation to:
    1. Determine that they contain all the information required for the pre-payment disclosure and receipt disclosure as described above;
    2. Determine that the credit union provides a proof of payment after payment is made for each transaction; and
    3. Determine that the proof of payment is clear and conspicuous, provided in writing or electronically, and provided in a retainable form.

Accuracy and Timing § 1005.31(e) and (f)

  1. Review, as appropriate, all available information including transactions or investigations/trace logs/records or similar documents to verify (subject to the disclaimer statement with respect to non-covered third-party fees and third-party taxes) the accuracy of disclosures provided to members.
    1. In instances where the credit union provides pre-payment disclosures and receipts that do not contain estimates, confirm for any transaction for which payment was made that the information on the most recent pre-payment disclosure and the information on the transaction receipt are the same.
    2. For amounts that are not estimates, confirm that the disclosed amounts were accurate at the time that payment was made.
    3. For amounts that are estimates, determine whether the credit union calculated estimates according to the applicable bases outlined in § 1005.32.
    4. In the case of estimates pursuant to §§ 1005.32(a), 1005.32(b)(1), and 1005.32(b)(2) that are based on an approach that is not one of the listed bases in § 1005.32(c), determine that the recipient received the same or a greater amount of funds than the credit union disclosed.
  2. Review processes and procedures or records, as appropriate, to determine whether the credit union provided the required disclosures according to the timing requirements in § 1005.31(e).
    1. Determine whether pre-payment disclosures are provided when the sender requests the remittance transfer, but before payment.
    2. Determine whether receipts are provided when payment is made, or according to § 1005.31(e)(2) for transactions conducted by telephone.

Long Form Error Resolution and Cancellation Notice § 1005.31(b)(4)

  1. Determine the credit union’s policy for providing long form error resolution and cancellation notices to senders upon request.
  2. Review the credit union’s records of senders’ requests and determine that a long form error resolution and cancellation notice is promptly provided in response to each request.
  3. Review sample notices to determine that they use the language in Model Form A-36 (Model Form for Error Resolution and Cancellation Disclosures (Long)) in Appendix A to Subpart B or substantially similar language.

Estimates § 1005.32

Temporary Exception for Insured Institutions § 1005.32(a)

  1. Determine that the remittance transfer provider is an insured institution within the definition of the rule. If so, review the appropriate information including transaction logs/records, etc., to identify remittance transfer transactions that were sent from the sender’s account with the credit union. From the list, identify transactions for which the credit union used estimates.

Note: An insured institution acting as an agent on behalf of another for a remittance transfer is not a remittance transfer provider.

  1. Review transactions for which estimates were used, and related disclosures, and any other relevant procedures, processes and documentation of information included in disclosures, as appropriate, to:
    1. Assess the adequacy of the credit union’s policy and procedures for determining that it could not determine exact amounts for reasons beyond its control;
    2. Determine that estimates were used only in cases where the credit union could not determine the exact amounts for reasons beyond its control;
    3. Determine the bases used for the estimates under § 1005.32(c) and consider their appropriateness; and
      1. If the credit union provided estimates according to one of the bases listed in Regulation E (§ 1005.32(c)), review documentation to confirm that inputs to estimates are appropriate.
      2. If estimates are based on an approach that is not one of the listed bases, determine as appropriate, that the designated recipient received the same or greater amount than the credit union disclosed.
    4. Determine that the estimated amounts are appropriately labeled with the term “Estimated” or a substantially similar term and placed in close proximity to the term described; and
    5. Determine that related calculations were performed appropriately.

Note: Unless CFPB extends it, this exception will not apply after July 21, 2020.

Permanent Exception for Transfers to Certain Countries § 1005.32(b)(1)

  1. Review and assess the adequacy of the credit union’s policy for determining that:
    1. The laws of the recipient country do not permit a determination of the exact amount; or
    2. The methods by which transactions are made in the recipient country do not permit a determination.
  2. Review the credit union’s transaction logs/records to identify remittance transactions that were sent to countries on the list provided by the CFPB for which estimates may be provided on remittance transfer-related disclosures to determine if the credit union properly relied on the list in making estimates.
  3. Determine whether the credit union gave estimates for transactions for a country that is not on the list provided by the CFPB. Review related documentation to confirm that the recipient country does not legally permit (or the method by which transactions are conducted in that country do not permit) determination of exact amounts.
  4. Review records to determine:
    1. The bases used for the estimates under § 1005.32(c) and their appropriateness:
      1. If estimates were provided in accordance with one of the bases listed in § 1005.32(c), review documentation to confirm that inputs to estimates are appropriate; or
      2. If estimates are based on an approach that is not one of the listed bases, determine, as appropriate, that the designated recipient received the same or a greater amount of funds than the remittance transfer provider disclosed.
    2. That the estimated amounts are appropriately labeled with the term “Estimated” or a substantially similar term and placed in close proximity to the term described.

Permanent Exception for Transfers Scheduled Before the Date of Transfer § 1005.32(b)(2)

  1. Review and assess the adequacy of the credit union’s policy and procedures for using estimates in the case of transfers scheduled five or more business days before the date of transfer.
  2. Review and assess transactions for which estimates were used as well as related disclosures (required by § 1005.36(a)), and any other relevant documentation, as appropriate, to determine compliance with § 1005.32(b)(2).
  3. Review the credit union’s policies and procedures on error resolution. (§ 1005.33)
  4. Review relevant error resolution statements/files, member complaints, form letters, etc., used to address errors or questions concerning remittance transfer transactions.
  5. Assess the credit union’s compliance program to determine whether it includes adequate written policies and procedures designed to ensure compliance with the error resolution requirements for remittance transfers. Consider:
    1. The procedures for receiving error complaints from branches, agents, or other locations where a member may lodge a complaint;
    2. The procedures for identifying complaints alleging “errors” as identified in § 1005.33(a); and
    3. The procedures for investigating, responding to, and resolving complaints.
  6. Determine the extent of the credit union’s compliance with its error resolution policies and procedures.
  7. Determine the credit union’s compliance with the regulatory requirements for investigating alleged errors and notifying members within allotted time frames.
  8. Determine the timeliness and adequacy of the credit union’s remedies for addressing identified errors.
    1. For errors under § 1005.33(a)(1)(iv) other than those that occurred because the sender provided incorrect or insufficient information, consider:
      1. If the credit union notified the sender of the error investigation.
      2. If the sender requested a remedy, whether the credit union offers the selected remedy.
      3. If a default remedy is provided, determine whether the sender had a reasonable time to designate a remedy after receiving a report of the error.
      4. If the remedy is delivery of the amount appropriate to correct the error, determine whether the credit union corrects the error within one business day, or as soon as reasonably practicable, applying the same exchange rate, fees, and taxes stated in the disclosure for the remittance transfer with respect to which the error was made.
    2. If the remedy is a refund, determine whether the credit union refunds the appropriate amount within one business day or as soon as reasonably practicable thereafter; provided the error relates to:
      1. An incorrect amount paid by the sender;
      2. A computational or bookkeeping error of the remittance transfer provider; or
      3. Failure to make the amount of currency stated in the disclosures available to the designated recipient.
  9. Determine whether the credit union either:
    1. Refunds the amount of funds the sender provided (in case of a transaction that was not properly transmitted) or the amount appropriate to resolve the error; or makes available to the designated recipient the amount appropriate to resolve the error without additional cost to the sender or the designated recipient.
    2. If the error relates to the failure to make funds available to the designated recipient by the disclosed date of availability (other than an error resulting from incorrect or insufficient information the sender provided), determine whether the credit union:
      1. Either:
        1. Refunds to the sender the amount that was not properly transmitted or the amount appropriate to resolve the error; or
        2. Makes available to the designated recipient the amount appropriate to resolve the error; and
      2. Refunds to the sender any fees and, to the extent not prohibited by law, taxes collected on the remittance transfer.
    3. In the case of errors involving incorrect or insufficient information provided by the sender for the transfer:
      1. Determine whether the credit union a) refunds to the sender the amount that was not properly transmitted or the amount appropriate to resolve the error, b) refunds the fees and taxes paid by the sender for the remittance transfer, and c) only deducts those fees actually deducted by a person other than the provider and (where not prohibited by law) taxes actually collected for the original unsuccessful transaction, within three business days of providing the written explanation of findings.
      2. Alternatively, if the credit union has not yet processed a refund and agrees to the sender’s request to apply the funds towards a new remittance transfer instead of a refund, determine whether the credit union treats the request as a new remittance transfer, provides the appropriate disclosures, and deducts only those fees actually deducted by a person other than the provider and (where not prohibited by law) taxes actually collected for the original unsuccessful transaction.
  10. Determine that the credit union is keeping records of compliance for no less than two years from the date a member submitted a notice of error to the provider or the provider was required to take action.

Procedures for Cancellation and Refund of Remittance Transfers § 1005.34 & § 1005.36(c)

  1. Review and assess the credit union’s policies and procedures for cancelling and refunding remittance transfer transactions, including:
    1. The procedures for receiving requests of cancellation from branches, agents, or other locations where a member may request cancellation.
    2. The procedures for identifying which transactions are eligible for cancellation.
    3. The procedures for issuing refunds.
  2. Determine the extent of the credit union’s compliance with its own policies and procedures on cancellations and refunds.
  3. Determine the credit union’s compliance with the regulatory requirements regarding senders’ requests for cancellation and refund.
  4. Determine whether the credit union complies with any oral or written request to cancel any remittance transfer scheduled by the sender at least three business days before the date of the remittance transfer.

Acts of Agents § 1005.35

Note: Complete this section if the credit union uses an agent(s) to conduct any element of remittance transfer transactions.

  1. Review the credit union’s agreements with agents used for remittance transfers to determine whether they are appropriate for the activities delegated.
  2. Determine whether the credit union has established appropriate internal controls and review procedures for the work done by agents on its behalf to ensure compliance with the regulatory requirements. Consider:
    1. The extent to which the credit union has established and maintained policies or procedures for compliance, including policies, procedures, or other appropriate oversight measures designed to assure compliance by an agent or authorized delegate including:
      1. The degree of control the agent exercises over remittance transfer activities it performs on the credit union’s behalf;
      2. The quality and frequency of training the credit union provides to ensure that agents are aware of the regulatory requirements and the credit union’s internal policy guidelines; and
      3. The adequacy of the credit union’s oversight of agents’ activities.
  3. Select a sample of agents the credit union uses and review their records in addition to relevant records the credit union holds to determine that the activities agents perform comply with regulatory requirements.

Transfers Scheduled Before the Date of Transfer § 1005.36

  1. Review and assess the adequacy of the credit union’s policies and procedures for transfers scheduled before the date of transfer.
  2. As appropriate, select a sample of records of transfers scheduled before the date of transfer to determine whether the provider complies with the timing of disclosures, accuracy of disclosures (and estimates pursuant to § 1005.32(b)(2)), and the sender’s request for cancellation. Use the same methods identified in the sections above regarding other disclosures. Consider the following:
    1. For one-time transfers scheduled five or more business days before the date of transfer or for the first in a series of preauthorized remittance transfers, determine whether the credit union provides either a pre-payment disclosure and a receipt or a combined disclosure when the sender requests the transfer but before payment.

      Note: If any of the disclosures provided contain estimates as permitted by § 1005.32(b)(2), the credit union must mail or deliver an additional receipt no later than one business day after the date of the transfer. If the transfer involves the transfer of funds from the sender’s account held by the provider, the credit union may provide this additional receipt on or with the next periodic statement for that account, or within 30 days after the date of the transfer if the credit union does not provide a periodic statement.
    2. For each subsequent preauthorized remittance transfer, determine whether the credit union provides an updated receipt if any of the information (other than temporary disclosures or disclosures permitted to be estimated) on the most recent receipt is no longer accurate.

      Note: The receipt must clearly and conspicuously indicate that it contains updated disclosures; it must be mailed or delivered to the sender within a reasonable time before the scheduled date of the next subsequent preauthorized remittance transfer. Ten business days for mail and five business days for hand or electronic delivery is deemed a reasonable time.
    3. If there is no updated information and the remittance transfer does not involve the transfer of funds from a sender’s account the credit union holds, determine whether the provider mails or delivers a receipt to the sender no later than one business day after the date of the transfer for each subsequent preauthorized transfer.
    4. If there is no updated information and the remittance transfer involves the transfer of funds from a sender’s account the credit union holds, determine whether the receipt is provided on or with the next periodic statement for that account, or within 30 days after the date of the transfer if a periodic statement is not provided.
    5. For any subsequent transfer in a series of preauthorized remittance transfers, determine whether the credit union discloses the information required by § 1005.36(d)(1) no more than 12 months and no less than five business days before the date of the subsequent preauthorized remittance transfer.

      Note: While the rule generally provides flexibility as to when and where future transfer dates may be disclosed, for any subsequent preauthorized remittance transfer for which the date of transfer is four or fewer business days after the date payment is made, the disclosure must generally be provided on or with the receipt for the initial transfer in that series.

ELECTRONIC FUND TRANSFER ACT (EFTA)
(REGULATION E)
CHECKLIST

Subpart A

Issuance of Access Devices – § 1005.5

Issuance of Access Devices – § 1005.5
Item Description YES NO N/A
1 Do the credit union’s policies, practices, and procedures allow validated access devices to be issued only: N/A N/A N/A
1(a) In response to oral or written requests? (§ 1005.5(a)(1)) or      
1(b) As a renewal or substitution for an accepted access device? (§ 1005.5(a)(2))      
2 Do the credit union’s policies, practices, and procedures allow unsolicited access devices to be issued only when the devices are: N/A N/A N/A
2(a) Not validated? (§ 1005.5(b)(1))      
2(b) Accompanied by a clear explanation that they are not validated and how they may be disposed of if validation is not desired? (§ 1005.5(b)(2))      
2(c) Accompanied by the initial disclosures required by § 1005.7? (§ 1005.5(b)(3))      
2(d) Validated only in response to a consumer’s request and after the credit union has verified the consumer’s identity by reasonable means (e.g., photograph, fingerprint, personal visit, and signature)? (§ 1005.5(b)(4) and Official Interpretations)      

Consumer Liability for Unauthorized Electronic Fund Transfers (EFTs) – § 1005.6

Consumer Liability for Unauthorized Electronic Fund Transfers (EFTs) – § 1005.6
Item Description YES NO N/A
3 Does the credit union impose liability on the member for unauthorized transfers only if: (§ 1005.6(a)) N/A N/A N/A
3(a) Any access device that was used was an accepted access device?      
3(b) The credit union has provided a means to identify the member to whom it was issued?      
3(c) The credit union has provided the disclosures required by § 1005.7(b)(l), (2), and (3)?      
4 Does the credit union not rely on member negligence or the deposit agreement to impose greater liability for unauthorized EFTs than permitted under Regulation E? (Comments 1005.6(b)-1 and -2)      
5 If a member notifies the credit union within two business days after learning of the loss or theft of an access device, does the credit union limit the member’s liability for unauthorized EFTs to the lesser of $50 or actual loss? (§ 1005.6(b)(1))      
6 If a member does not notify the credit union within two business days after learning of the loss or theft of an access device, does the credit union limit the member’s liability for unauthorized EFTs to the lesser of $500 or the sum of: (§ 1005.6(b)(2)) N/A N/A N/A
6(a) $50 or the amount of unauthorized EFTs that occurred within the two business days, whichever is less; plus N/A N/A N/A
6(b) The amount of unauthorized EFTs that occurred after the close of two business days and before notice to the credit union (provided the credit union establishes that these transfers would not have occurred had the member notified the credit union within that two-day period)?      
7 If a member notifies the credit union of an unauthorized EFT within 60 calendar days of transmittal of the periodic statement upon which the unauthorized EFT appears, does the credit union not hold the member liable for the unauthorized transfers that occur after the 60-day period? (§ 1005.6(b)(3))      
8 If a member does not notify the credit union of an unauthorized EFT within 60 calendar days of transmittal of the periodic statement upon which the unauthorized EFT appears, does the credit union ensure that the member’s liability does not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the credit union, if the credit union establishes that the transfers would not have occurred had timely notice been given? (§ 1005.6(b)(3))      
9 If a member notifies the credit union of an unauthorized EFT within the time frames discussed in questions 7 or 8 and the member’s access device is involved in the unauthorized transfer, does the credit union hold the member liable for amounts stated in § 1005.6(b)(1) or (2) (discussed in questions 5 and 6)? (§ 1005.6(b)(3))      

NOTE: The first two tiers of liability (§ 1005.6(b)(1) and (2), discussed in questions 5 and 6 do not apply to unauthorized transfers from a member’s account made without an access device. (Comment 1005.6(b)(3)-2)

Consumer Liability for Unauthorized Electronic Fund Transfers (EFTs) – § 1005.6 - Continued
Item Description YES NO N/A
10 Does the credit union extend the 60-day time period by a reasonable amount, if the member’s delay in notification was due to an extenuating circumstance? (§ 1005.6(b)(4))      
11 Does the credit union consider notice to be made when the member takes steps reasonably necessary to provide the credit union with pertinent information, whether or not a particular employee or agent of the credit union actually received the information? (§ 1005.6(b)(5)(i))      
12 Does the credit union allow the member to provide notice in person, by telephone, or in writing? (§ 1005.6(b)(5)(ii))      
13 Does the credit union consider written notice to be given when the member mails or delivers the notice for transmission to the credit union by any other usual means? (§ 1005.6(b)(5)(iii))      
14 Does the credit union consider notice given when it becomes aware of circumstances leading to the reasonable belief that an unauthorized transfer to or from the member’s account has been or may be made? (§ 1005.6(b)(5)(iii))      
15 Does the credit union limit the member’s liability to less than provided by § 1005.6, when state law or its agreement with the member provide for a lesser amount? (§ 1005.6(b)(6))      

Initial Disclosures – § 1005.7

Initial Disclosures – § 1005.7
Item Description YES NO N/A
16 Does the credit union provide the initial disclosures at the time a member contracts for an EFT service or before the first EFT is made involving the member’s account? (§ 1005.7(a))      
17 Do the credit union’s initial disclosures provide the following information, as applicable: N/A N/A N/A
17(a) A summary of the member’s liability for unauthorized transfers under § 1005.6 or under state or other applicable law or agreement? (§ 1005.7(b)(1))      
17(b) The telephone number and address of the person or office to be notified when the member believes that an unauthorized EFT has been or may be made? (§ 1005.7(b)(2))      
17(c) The credit union’s business days? (§ 1005.7(b)(3))      
17(d) The type of EFTs the member may make and any limits on the frequency and dollar amount of transfers? (If details on the limits on frequency and dollar amount are essential to maintain the security of the system, they need not be disclosed.) (§ 1005.7(b)(4))      
17(e) Any fees imposed by the credit union for EFTs or for the right to make transfers? (§ 1005.7(b)(5))      
17(f) A summary of the member’s right to receive receipts and periodic statements, as provided in § 1005.9, and notices regarding preauthorized transfers as provided in § 1005.10(a) and 1005.10(d)? (§ 1005.7(b)(6))      
17(g) A summary of the member’s right to stop payment of a preauthorized EFT and the procedure for doing so, as provided in § 1005.10(c)? (§ 1005.7(b)(7))      
17(h) A summary of the credit union’s liability to the member for its failure to make or to stop certain transfers under the Electronic Fund Transfer Act? (§ 1005.7(b)(8))      
17(i) The circumstances under which the credit union, in the ordinary course of business, may disclose information to third parties concerning the member’s account? (§ 1005.7(b)(9))      
17(j) An error resolution notice that is substantially similar to the Model Form A-3 in Appendix A? (§ 1005.7(b)(10))      
17(k) A notice that a fee may be imposed by an ATM operator (as defined in § 1005.16(a)) when the member initiates an EFT or makes a balance inquiry and by any network used to complete the transaction? (§ 1005.7(b)(11))      
18 Does the credit union provide disclosures at the time a new EFT service is added, if the terms and conditions of the service are different than those initially disclosed? (§ 1005.7(c))      

Change-in-Terms Notice; Error Resolution Notice – § 1005.8

Change-in-Terms Notice; Error Resolution Notice – § 1005.8
Item Description YES NO N/A
19 If the credit union made any changes in terms or conditions required to be disclosed under § 1005.7(b) that would result in increased fees, increased liability, fewer types of available EFTs, or stricter limits on the frequency or dollar amount of transfers, did the credit union provide a written notice to members at least 21 days before the effective date of the change? (§ 1005.8(a))      
20 Does the credit union provide either the long form error resolution notice at least once every calendar year or the short form error resolution notice on each periodic statement? (§ 1005.8(b))      

Receipts at Electronic Terminals; Periodic Statements – § 1005.9

Receipts at Electronic Terminals; Periodic Statements – § 1005.9
Item Description YES NO N/A
21 Does the credit union make receipts available to the member when the member initiates an EFT at an electronic terminal? (A credit union is exempt from this requirement for EFTs of $15 or less.) (§ 1005.9(a) and (e))      
22 Do the receipts contain the following information, as applicable: N/A N/A N/A
22(a) The amount of the transfer? (§ 1005.9(a)(1))      
22(b) The date the transfer was initiated? (§ 1005.9(a)(2))      
22(c) The type of transfer and the type of account to or from which funds were transferred? (§ 1005.9(a)(3))      
22(d) A number or code that identifies the member’s account or the access device used to initiate the transfer? (§ 1005.9(a)(4))      
22(e) The terminal location where the transfer is initiated? (§ 1005.9(a)(5))      
22(f) The name or other identifying information of any third party to or from whom funds are transferred? (§ 1005.9(a)(6))      
23 Does the credit union send a periodic statement for each monthly cycle in which an EFT has occurred? If no EFT occurred, does the credit union send a periodic statement at least quarterly? (§ 1005.9(b))      
24 Does the periodic statement contain the following information, as applicable: N/A N/A N/A
24(a) Transaction information for each EFT occurring during the cycle, including the amount of transfer, date of transfer, type of transfer, terminal location, and name of any third-party transferor or transferee? (§ 1005.9(b)(1))      
24(b) Account number? (§ 1005.9(b)(2))      
24(c) Fees? (§ 1005.9(b)(3))      
24(d) Account balances? (§ 1005.9(b)(4))      
24(e) Address and telephone number for inquiries? (§ 1005.9(b)(5))      
24(f) Telephone number to ascertain preauthorized transfers, if the credit union provides telephone notice under § 1005.10(a)(1)(iii)? (§ 1005.9(b)(6))      

Preauthorized Transfers – § 1005.10

Preauthorized Transfers – § 1005.10
Item Description YES NO N/A
25 If a member’s account is to be credited by a preauthorized EFT from the same payor at least once every 60 days (and the payor does not already provide notice to the member that the transfer has been initiated), does the credit union do one of the following: (§ 1005.10(a)(2)) N/A N/A N/A
25(a) Provide oral or written notice within two business days after the transfer occurs? (§ 1005.10(a)(1)(i))      
25(b) Provide oral or written notice, within two business days after the transfer was scheduled to occur, that the transfer did or did not occur? (§ 1005.10(a)(1)(ii))      
25(c) Provide a readily available telephone line that the member can call to determine if the transfer occurred, which telephone number is disclosed on the initial disclosure of account terms and on each periodic statement? (§ 1005.10(a)(1)(iii))      
26 Does the credit union credit the amount of a preauthorized transfer as of the date the funds for the transfer are received? (§ 1005.10(a)(3))      
27 Does the credit union ensure that an authorization is obtained for preauthorized transfers from a member’s account by a written, signed, or similarly authenticated authorization, and is a copy of the authorization provided to the member? (§ 1005.10(b))      
28 Does the credit union allow the member to stop payment on a preauthorized EFT by oral or written notice at least three business days before the scheduled date of the transfer? (§ 1005.10(c)(1))      
29 If the credit union requires that the member give written confirmation of an oral stop-payment order within 14 days, does it inform the member, at the time of oral notification, of the requirement and provide the address where they must send the written confirmation?      

NOTE: An oral stop-payment order ceases to be binding after 14 days if the member fails to provide the required written confirmation. (§ 1005.10(c)(2))

Preauthorized Transfers – § 1005.10 - Continued
Item Description YES NO N/A
30 Does the credit union inform, or ensure that third-party payees inform, the member of the right to receive notice of all varying transfers? or      
30(a) Does the credit union give the member the option of receiving notice only when a transfer falls outside a specified range of amounts or differs from the most recent transfer by an agreed-upon amount? (§ 1005.10(d)(2))      
31 If the credit union or third-party payee is obligated to send the member written notice of the EFT of a varying amount, does the credit union ensure that: N/A N/A N/A
31(a) The notice contains the amount and date of transfer?      
31(b) The notice is sent at least 10 days before the scheduled date of transfer? (§ 1005.10(d)(1))      
32 Does the credit union refrain from making repayment by preauthorized EFT a condition for extending credit, except for credit it extends under an overdraft credit plan or to maintain a specified minimum balance in the member’s account?
(§ 1005.10(e)(1))
     
33 Does the credit union refrain from requiring a member to establish an account for EFTs with a particular institution as a condition of employment or receipt of government benefits?
(§ 1005.10(e)(2))
     

Procedures for Resolving Errors – § 1005.11

Procedures for Resolving Errors – § 1005.11
Item Description YES NO N/A
34 Does the credit union have procedures to investigate and resolve all oral or written notices of error received no later than 60 days after the credit union sends the periodic statement or provides passbook documentation? (§ 1005.11(b)(2))      
35 If the credit union requires written confirmation of an error within 10 business days of an oral notice, does the credit union inform the member of this requirement and provide the address where the written confirmation must be sent? (§ 1005.11(b)(2))      
36 Does the credit union have procedures to investigate and resolve alleged errors within 10 business days, except as otherwise provided in § 1005.11(c)? (§ 1005.11(c)(1))      

NOTE: The time period (for question 36) is extended in certain circumstances. (§ 1005.11(c)(3))

Procedures for Resolving Errors – § 1005.11 - Continued
Item Description YES NO N/A
37 Does the credit union report results to the member within three business days after completing its investigation and correct any error within one business day after determining that an error occurred? (§ 1005.11(c)(1))      
38 If the credit union is unable to complete its investigation within 10 business days, does it have procedures to investigate and resolve alleged errors within 45 calendar days of receipt of a notice of error; and:      
38(a) Does the credit union provisionally credit the member’s account in the amount of the alleged error (including interest, if applicable) within 10 business days of receiving the error notice (however, if the credit union requires, but does not receive, written confirmation within 10 business days, the credit union is not required to provisionally credit the member’s account)?      
38(b) Within two business days after granting any provisional credit, does the credit union inform the member of the amount and date of the provisional credit and give the member full use of the funds during the investigation?      
38(c) Within one business day after determining that an error occurred, does the credit union correct the error?      
38(d) Does the credit union report the results to the member within three business days after completing its investigation including, if applicable, notice that provisional credit has been made final? (§ 1005.11(c))      
39 If a billing error occurred, does the credit union not impose a charge related to any aspect of the error-resolution process? (Comment 1005.11(c)-3)      
40 If the credit union determines that no error occurred (or that an error occurred in a manner or amount different from that described by the member), does the credit union send a written explanation of its findings to the member and note the member’s right to request the documents the credit union used to make its determination? (§ 1005.11(d)(1))      
41 When the credit union determines that no error (or a different error) occurred, does the credit union notify the member of the date and amount of the debit of the provisionally credited amount and the fact that the credit union will continue to honor checks and drafts to third parties and preauthorized transfers for five business days (to the extent that they would have been paid if the provisionally credited funds had not been debited)? (§ 1005.11(d)(2))      

Record Retention – § 1005.13

Record Retention – § 1005.13
Item Description YES NO N/A
42 Does the credit union keep evidence of compliance with the requirements of the Electronic Fund Transfer Act and Regulation E for two years? (§ 1005.13(b))      

Disclosures at Automated Teller Machines (ATMs) – § 1005.16

Disclosures at Automated Teller Machines (ATMs) – § 1005.16
Item Description YES NO N/A
43 If the credit union operates an ATM and imposes a fee on a member for initiating an EFT or balance inquiry, does the credit union provide notice that a fee will be imposed and disclose the amount of the fee? (§ 1005.16(b))      
44 Does the credit union provide the notice required by § 1005.16(b) either by showing it on the ATM screen or by providing it on paper before the member is committed to paying a fee? (§ 1005.16(c))      

Requirements for Overdraft Services – § 1005.17

Requirements for Overdraft Services – § 1005.17
Item Description YES NO N/A
45 Does the credit union’s Overdraft Protection Program incorporate any guidance issued by its federal regulator, as applicable?      
46 Does the credit union’s Overdraft Protection Program provide “overdraft services” (i.e., charge fees for paying ATM and one-time debit overdrafts)? (§ 1005.17(a)) If not, do not complete this section.      
47 If the credit union assesses a fee or charge on the member’s account for paying an ATM or one-time debit card transaction under the credit unions overdraft service, does the credit union first: (§ 1005.17(b)(1)) N/A N/A N/A

NOTE: Fees or charges may generally be assessed only on transactions paid after the confirmation has been mailed or delivered.

Requirements for Overdraft Services – § 1005.17 - Continued
Item Description YES NO N/A
47(a) Provide the member with a notice in writing, or if the member agrees, electronically, that is segregated from all other information and describes the credit union’s overdraft service? (§ 1005.17(b)(1)(i))      
47(b) Provide a reasonable opportunity for the member to affirmatively consent, or opt-in, to payment of ATM and one-time debit card transactions? (§ 1005.17(b)(1)(ii))      
47(c) Obtain the member’s affirmative consent, or opt-in, to the credit union’s payment of ATM or one-time debit card transactions? (§ 1005.17(b)(1)(iii))      
47(d) Provide the member with confirmation of consent in writing, or if the member agrees, electronically, which includes a statement informing the member of the right to revoke consent? (§ 1005.17(b)(1)(iv))      
48 Does the credit union ensure that it does not condition the payment of any overdrafts for checks, ACH transactions, and other types of transactions on the member affirmatively consenting to the credit union’s payment of ATM and one-time debit card transactions under the credit union’s “overdraft services”? (§ 1005.17(b)(2)(i))      
49 Does the credit union pay checks, ACH transactions, and other types of transactions that overdraw the member’s account regardless of whether the member has affirmatively consented to the credit union’s overdraft protection service for ATM and one-time debit card transactions? (§ 1005.17(b)(2)(ii))      
50(a) For members who have not opted-in, if an overdraft fee or charge is based on the amount of the outstanding negative balance, does the credit union only assess fees where the negative balance is due in whole or in part to a check, ACH, or other type of transaction not subject to the prohibition on assessment of overdraft fees?      
50(b) For members who have not opted-in, does the credit union only assess daily or sustained overdraft, negative balance, or similar fees or charges where the negative balance is due in whole or in part to a check, ACH, or other type of transaction not subject to the prohibition on assessment of overdraft fees?      
50(c) Does the credit union base the date on which a daily or sustained overdraft, negative balance, or similar fee or charge is assessed on the date the check, ACH, or other type of transaction was paid into overdraft? (Comment 1005.17(b)-9)      
51 Does the credit union provide members who do not affirmatively consent to the credit union’s overdraft service for ATM and one-time debit card transactions the same account terms, conditions, and features that it provides to members who affirmatively consent, except for the overdraft service for ATM and one-time debit card transactions? (§ 1005.17(b)(3))      
52 Is the notice required by § 1005.17(b)(1)(i) substantially similar to Model Form A-9 in Appendix A of § 1005.17, including applicable items from the list below, without any additional information? (§ 1005.17(d))      
52(a) Overdraft Service – Does the notice provide a brief description of the overdraft service and the types of transactions for which a fee or charge for paying an overdraft may be imposed, including ATM and one-time debit card transactions? (§ 1005.17(d)(1))      
52(b) Fees imposed – Does the notice contain the dollar amount of any fees or charges assessed by the credit union for paying an ATM or one-time debit card transaction pursuant to the credit union’s overdraft service, including any daily or other overdraft fees?      

NOTE: If the amount of the fee is determined on the basis of the number of times the member has overdrawn the account, the amount of the overdraft, or other factors, the credit union must disclose the maximum fee that may be imposed. (§ 1005.17(d)(2))

Requirements for Overdraft Services – § 1005.17 - Continued
Item Description YES NO N/A
52(c) Limits on Fees Charged – Does the notice disclose the maximum number of overdraft fees or charges that may be assessed per day, or, if applicable, that there is no limit? (§ 1005.17(d)(3))      
52(d) Disclosure of opt-in right – Does the notice explain the member’s right to affirmatively consent to the credit union’s payment of overdrafts for ATM and one-time debit card transactions under the credit union’s overdraft service, including the methods the member may use to consent to the service? (§ 1005.17(d)(4))      
52(e) Alternative Plans for Covering Overdrafts – As applicable, does the credit union’s opt-in notice appropriately address alternative methods for covering overdrafts?      
52(f) If the credit union offers both a line of credit subject to Regulation Z (§ Part 1026) and a service that transfers funds from another account of the member held at the credit union to cover overdrafts, does the notice state that both alternative plans are offered?      
52(g) If the credit union offers one alternative plan, but not the other, does the notice state which alternative plan it offers? If the credit union does not offer either a line of credit subject to Regulation Z (§ Part 1026) or a service that transfers funds from another account of the member held at the credit union to cover overdrafts, does the notice exclude information regarding either of these plans?      
52(h) If the credit union offers additional alternatives for paying overdrafts, at its option the credit union may (but is not required to) disclose those alternatives. Does its notice describe those alternatives?      
52(i) Permitted Modifications and Additional Content. If the credit union modifies the notice, are the modifications permitted: to indicate that the member has the right to opt-in to, or out of, the payment of overdrafts under the credit union’s overdraft service for other types of transactions, such as checks, ACH transactions, or automatic bill payments; to provide a means for the member to exercise this choice; and to disclose the associated returned item fee and that additional merchant fees may apply?      

NOTE: The credit union may also disclose the member’s right to revoke consent. The response portion of Model Form A-9 may be tailored to the methods offered for opting-in, and may include reasonable methods to identify the account, such as a bar code. (§ 1005.17(d)(6) and Comments 1005.17(d)-1 through -5))

Requirements for Overdraft Services – § 1005.17 - Continued
Item Description YES NO N/A
53 Joint Accounts – When two or more members jointly hold an account, does the credit union treat the affirmative consent of any of them as affirmative consent for that account, and treat the revocation of consent by any of them as revocation of consent for that account? (§ 1005.17(e))      
54 Continuing Right to Opt-In or to Revoke Opt-In – Does the credit union allow the member to affirmatively consent to its overdraft service at any time in the manner described in the notice required under § 1005.17(b)(1)(i), and allow a member to revoke consent at any time in the manner made available to the member for providing consent? (§ 1005.17(f))      
55 Does the credit union implement a member’s revocation of consent as soon as reasonably practicable? (§ 1005.17(f))      
56 Is the member’s affirmative consent to the overdraft service effective until the member revokes it, or unless the credit union terminates the service? (§ 1005.17(g))      

Payroll Card Accounts – § 1005.18

Payroll Card Accounts – § 1005.18
Item Description YES NO N/A
57 If the credit union offers payroll card accounts, does the credit union either provide periodic statements as required by § 1005.9(b) or make available to the member:      
57(a) The account balance, through a readily available telephone line, and      
57(b) An electronic history of the member’s account transactions, such as through an Internet website, that covers at least 60 days before the date the member electronically accesses the account, and      
57(c) A written history of the member’s account transactions that is provided promptly in response to an oral or written request, covering at least 60 days before the date the credit union receives the member’s request? (§ 1005.18(b))      

NOTE: The history of account transactions must include the information in § 1005.9(b).

Payroll Card Accounts – § 1005.18 - Continued
Item Description YES NO N/A
58 Does the credit union provide initial disclosures that include, at a minimum: N/A N/A N/A
58(a) A telephone number that the member may call to obtain the account balance, the means by which the member can obtain an electronic account history, such as the address of a website, and a summary of the member's right to receive a written account history upon request, including a telephone number to call to request a history?      
58(b) A notice concerning error resolution? (§ 1005.18(c)(1))      
59 Does the credit union provide an annual notice concerning error resolution or, alternatively, an abbreviated notice with each electronic and written history? (§ 1005.18(c)(2))      
60 Does the credit union begin the 60-day period for reporting any unauthorized transfer under § 1005.6(b)(3) on the earlier of: N/A N/A N/A
60(a) The date the member electronically accesses the member's account after the electronic history, provided that the electronic history made available to the member reflects the transfer; or      
60(b) The date the credit union sends a written history (that the member requests) of the member's account transactions in which the unauthorized transfer is first reflected? (§ 1005.18(c)(3))      

NOTE: A credit union may comply with the provision above by limiting the member's liability for an unauthorized transfer as provided under § 1005.6(b)(3) for any transfer reported by the member within 120 days after the transfer was credited or debited to the member's account.

Payroll Card Accounts – § 1005.18 - Continued
Item Description YES NO N/A
61 Does the credit union comply with the error resolution requirements in response to an oral or written notice of an error from the member that is received by the earlier of: N/A N/A N/A
61(a) 60 days after the date the member electronically accesses the member's account after the electronic history made available to the member reflects the alleged error; or      
61(b) 60 days after the date the credit union sends a written history (that the member requests) of the member's account transactions in which the alleged error is first reflected? (§ 1005.18(c)(4))      

NOTE: The credit union may comply with the requirements for resolving errors by investigating any oral or written notice of an error from the member that the credit union receives within 120 days after the allegedly erroneous transfer was credited or debited to the member's account.

Requirements for Gift Cards and Gift Certificates – § 1005.20

Requirements for Gift Cards and Gift Certificates – § 1005.20
Item Description YES NO N/A
62 Does the credit union offer gift certificates, store gift cards, general-use prepaid cards, loyalty, award, or promotional gift cards? If no, do not complete this section.      
63 Determine if the credit union offers members, primarily for personal, family, or household purposes, in a specified amount, a card, code, or other device on a prepaid basis, the following: N/A N/A N/A
63(a) Gift certificates – which may not be increased or reloaded in exchange for payment; and are redeemable upon presentation at a single merchant or an affiliated group of merchants for goods and services? (§ 1005.20(a)(1))      
63(b) Store gift cards – which may be increased or reloaded, in exchange for payment; and are redeemable upon presentation at a single merchant or an affiliated group of merchants for goods and services? (§ 1005.20(a)(2))      
63(c) General-use prepaid cards – which may be increased or reloaded, in exchange for payment; and are redeemable upon presentation at multiple, unaffiliated merchants for goods or services, or useable at automated teller machines? (§ 1005.20(a)(3))      
64 Do loyalty, award, or promotional gift cards as defined by § 1005.20(a)(4) contain the following disclosures as applicable? N/A N/A N/A
64(a) A statement indicating that the card, code, or other device is issued for loyalty, award, or promotional purposes, which must be included on the front of the card, code, or other device? (§ 1005.20(a)(4)(iii)(A))      
64(b) The expiration date for the underlying funds, which must be included on the front of the card, code, or other device? (§ 1005.20(a)(4)(iii)(B))      
64(c) The amount of fees that may be imposed in connection with the card, code, or other device, and the conditions under which they may be imposed, which must be provided with the card, code, or other device? (§ 1005.20(a)(4)(iii)(C))      
64(d) A toll-free telephone number and, if one is maintained, a website, that a member may use to obtain fee information, which must be included on or with the card, code, or other device? (§ 1005.20(a)(4)(iii)(D))      
65 If the terms of the gift certificate, store gift card, or general-use prepaid card impose a dormancy, inactivity, or service fee as defined under § 1005.20(a), please answer the following: N/A N/A N/A
65(a) Has there been activity with respect to the certificate or card, in the one-year period ending on the date the fee was imposed? (§ 1005.20(d)(1))      
65(d) As applicable, are the following clearly and conspicuously stated on the gift certificate, store gift card, or general-use prepaid card: N/A N/A N/A
65(d)(i) The amount of any dormancy, inactivity, or service fee that may be charged? (§ 1005.20(d)(2)(i))      
65(d)(ii) How often these fees may be assessed? (§ 1005.20(d)(2)(ii))      
65(d)(iii) That these fees may be assessed for inactivity? (§ 1005.20(d)(2)(iii))      
65(e) Is the dormancy, inactivity, or service fee imposed limited to one in any given calendar month? (§ 1005.20(d)(3))      
66 If the credit union sells or issues a gift certificate, store gift card, or general-use prepaid card with an expiration date, please answer the following: N/A N/A N/A
66(a) Has the credit union established policies and procedures to provide members with a reasonable opportunity to purchase a certificate or card with at least five years remaining until the certificate or card expiration date? (§ 1005.20(e)(1))      
66(b) Is the expiration date for the underlying funds at least the later of five years after the date the gift certificate was initially issued, or the date on which funds were last loaded to a store gift card or general-use prepaid card; or the certificate or card expiration date, if any? (§ 1005.20(e)(2))      
67 If the credit union sells or issues a gift certificate, store gift card, or general-use prepaid card with an expiration date, are the following disclosures provided on the certificate or card, as applicable: N/A N/A N/A
67(a) The expiration date for the underlying funds, or if the underlying funds do not expire, the fact that the funds do not expire? (§ 1005.20(e)(3)(i))      
67(b) A toll-free number and, if one is maintained, a website that a member may use to obtain a replacement certificate or card after the certificate or card expires if the underlying funds may be available? (§ 1005.20(e)(3)(ii))      
67(c) Except where a non-reloadable certificate or card has an expiration date that is at least seven years from the date of manufacture, a statement, disclosed with equal prominence and in close proximity to the certificate or card expiration date, that: N/A N/A N/A
67(c)(i) The certificate or card expires, but the underlying funds either do not expire or expire later than the certificate or card? (§ 1005.20(e)(3)(iii)(A))      
67(c)(ii) The member may contact the issuer for a replacement card? (§ 1005.20(e)(3)(iii)(B))      
67(c)(iii) No fee or charge is imposed on the cardholder for replacing the gift certificate, store gift card, or general-use prepaid card or for providing the certificate or card holder with the remaining balance in some manner before the funds expiration date unless such certificate or card has been lost or stolen? (§ 1005.20(e)(4))      
68 Are the following disclosures provided in connection with a gift certificate, store gift card, or general-use prepaid card, as applicable: N/A N/A N/A
68(a) For each type of fee (other than a dormancy, inactivity, or service fee), the following information: N/A N/A N/A
68(a)(i) The type of fee? (§ 1005.20(f)(1)(i))      
68(a)(ii) The amount of the fee (or an explanation of how it will be determined)? (§ 1005.20(f)(1)(ii))      
68(a)(iii) The conditions under which the fee may be imposed? (§ 1005.20(f)(1)(iii))      
68(b) A toll-free telephone number and, if one is maintained, a website that a member may use to obtain information about dormancy, inactivity, service, or each type of fee that may be imposed in connection with the certificate or card? (§ 1005.20(f)(2))      

Subpart B – Requirements for Remittance Transfers

Subpart B – Requirements for Remittance Transfers
Item Description YES NO N/A
1 Does the credit union offer remittance transfers in the normal course of business?      
1(a) If the credit union deems itself to not offer remittance transfers in the normal course of business as a result of the 100-transfer safe harbor, are the credit union’s method for counting transactions appropriate and properly documented?      

Complete the rest of the checklist if the credit union offers remittance transfers in the normal course of business.

Subpart B – Requirements for Remittance Transfers - Continued
Item Description YES NO N/A
2 Does the credit union have written policies and operating procedures governing its remittance transfer operations?      
3 Do these policies and procedures adequately address the requirements of Subpart B?      
4 Are the credit union’s personnel who are involved in remittance transfer operations knowledgeable about the requirements of Subpart B?      

Disclosures – § 1005.31

(Unless otherwise indicated, the disclosure requirements apply to all remittance transfer transactions, including those scheduled before the date of transfer).

Disclosures – § 1005.31
Item Description YES NO N/A
5 Does the credit union provide pre-payment disclosures and receipts or combined disclosures to its remittance transfer customers? (§ 1005.31(b)(1), (2), and (3))      

NOTE: specific content of disclosures are addressed below.

Disclosures – § 1005.31 - Continued
Item Description YES NO N/A
6 Are written disclosures: N/A N/A N/A
6(a) In the appropriate form? (§ 1005.31(c))      
6(b) Clear and conspicuous? (§ 1005.31(a)(1))      
6(c) In a form the member may keep? (§ 1005.31(a)(2))      
7 Are written and electronic disclosures provided in compliance with the foreign language requirements of § 1005.31(g)?      
8 If the credit union uses scripts to provide oral disclosures for remittance transfer transactions and error resolution procedures conducted over the telephone, do the scripts comply with the requirements of § 1005.31(a)(3) and (a)(4)?      
9 Do disclosures related to telephone, mobile application, or text message transactions comply with the disclosure requirements for foreign languages and notice of cancellation rights? (§ 1005.31(g)(2) and § 1005.31(b)(2)(iv)      
10 Does information in written or electronic disclosures comply with the grouping requirements of § 1005.31(c)(1)?      
11 Is the exchange rate used for the remittance transfer generally disclosed in close proximity to the other information in the pre-payment disclosures? (§ 1005.31(c)(2))      
12 In case of a disclosure that includes the disclaimer statement under § 1005.31(b)(1)(viii), is the disclaimer in close proximity to the Total to Recipient? (§ 1005.31(c)(2))      
13 Are disclosures on error resolution and cancellation rights generally disclosed in close proximity to the other disclosures on the receipt? (§ 1005.31(c)(2))      
14 Are disclosures that are provided in writing or electronically provided in a minimum of eight point font, in equal prominence to each other, and on the front of the page on which the disclosures are printed? (§ 1005.31(c)(3))      
15 For disclosures that are provided in writing or electronically: N/A N/A N/A
15(a) Do they contain only information directly related to the disclosures?      
15(b) Are they segregated from other disclosures? (§ 1005.31(c)(4))      
16 Are estimated amounts in the disclosures appropriately described using the term “estimated” or a substantially similar term in close proximity to the estimate described? (§ 1005.31(d))      
17 Are disclosures provided in compliance with the timing requirements of § 1005.31(e)?      
18 Do disclosures comply with the accuracy requirements of § 1005.31(f)?      

NOTE: For a one-time transfer scheduled five or more business days in advance or for the first in a series of preauthorized remittance transfers, disclosures must be accurate when a sender makes payment except to the extent estimates are permitted. For any subsequent transfer in a series of preauthorized remittance transfers, disclosures must be accurate as of the date the preauthorized remittance transfer it pertains to is made. (§ 1005.36(b))

Pre-payment Disclosures - § 1005.31(b)(1)

Pre-payment Disclosures - § 1005.31(b)(1)
Item Description YES NO N/A
19 Does the credit union appropriately distinguish between covered and non-covered third party fees?      
20 Do the credit union’s pre-payment disclosures appropriately inform the recipient of the following information, as applicable, using the terms in quotes below (or substantially similar terms): N/A N/A N/A
20(a) “Transfer Amount” both in the currency in which the transaction is funded and in the currency in which the funds will be made available to the recipient?      
20(b) “Transfer Fees” and “Transfer Taxes”?      
20(c) “Other Fees”?      
20(d) “Exchange Rate”?      
20(e) “Total to Recipient”?      
20(f) If applicable, a disclaimer that non-covered third-party fees or taxes collected on the remittance transfer by a third person may apply, resulting in the designated recipient receiving less than the amount disclosed? (§ 1005.31(b)(1))      
20(g) If the credit union includes in the disclaimer statement required by § 1005.31(b)(1)(viii) an optional estimated disclosure of applicable non-covered third-party fees or taxes, are the estimates based on reasonable sources of information? (§ 1005.32(b)(3))      

Receipt – § 1005.31(b)(2)

Receipt – § 1005.31(b)(2)
Item Description YES NO N/A
21 Do the credit union’s receipts appropriately calculate and disclose to the recipient the following information, as applicable, using the terms in quotes below (or substantially similar terms), as applicable: N/A N/A N/A
21(a) All the information required to be provided in the pre-payment disclosure?      
21(b) “Date Available”?      
21(c) “Recipient”?      
21(d) A statement about the sender’s error resolution and cancellation rights, using language set forth in Model Form A-37 of Appendix A or substantially similar language?      

NOTE: If the transfer is scheduled at least three business days before the date of the transfer, the statement about the sender’s cancellation rights should reflect the requirements of § 1005.36(c).

Receipt – § 1005.31(b)(2) - Continued
Item Description YES NO N/A
21(e) Name, telephone number(s) and, if applicable, the website of the credit union?      
21(f) A statement that the sender can contact the state agency that licenses or charters the remittance transfer provider with respect to the particular transfer (if applicable) and NCUA and CFPB, for questions or complaints about the remittance transfer provider, using language in Model Form A-37 of Appendix A, or substantially similar language?      

NOTE: The statement must include the name, telephone number(s) and website of the state agency, and the name, toll-free telephone number(s) and website of NCUA and CFPB.

Receipt – § 1005.31(b)(2) - Continued
Item Description YES NO N/A
21(g) The transfer date (only for transfers scheduled at least three business days in advance, or the first transfer in a series of preauthorized remittance transfers)?      

Combined Disclosure – § 1005.31(b)(3)

Complete this section only if the credit union issues combined disclosures as an alternative to separate pre-payment disclosures and receipts.

Combined Disclosure – § 1005.31(b)(3)
Item Description YES NO N/A
22 Does the combined disclosure contain all the information required to be provided on the receipt?      
23 Does the credit union provide the combined disclosure when the sender requests the remittance transfer, but before paying for the transfer; and provide a proof of payment when payment is made for the transfer?      

NOTE #1: The proof of payment must be clear and conspicuous, and provided in writing or electronically in a retainable form.

NOTE #2: For one-time transfers scheduled five or more business days in advance or for the first in a series of preauthorized transfers, the credit union may provide confirmation that the transaction has been scheduled instead of the proof of payment, if payment is not processed at the time the remittance transfer is scheduled. No further proof of payment is required when payment is later processed.

Long Form Error Resolution and Cancellation Notice – § 1005.31(b)(4)

Long Form Error Resolution and Cancellation Notice – § 1005.31(b)(4)
Item Description YES NO N/A
24 Does the credit union promptly furnish, at the sender’s request, a notice describing the sender’s error resolution and cancellation rights, using language in Model Form A-36 of Appendix A or substantially similar language? (§ 1005.31(b)(4))      

NOTE: For a remittance transfer scheduled at least three business days before the date of the transfer, the description of the rights of the sender regarding cancellation must instead reflect the requirements of § 1005.36(c).

Estimates – § 1005.32

Temporary Exception for Insured Institutions – § 1005.32(a)
Temporary Exception for Insured Institutions – § 1005.32(a)
Item Description YES NO N/A
25 If the remittance transfer credit union is an insured credit union (as defined by § 1005.32(a)(3)), does it use estimates in its disclosures for transactions sent from the sender’s account with the credit union?      
26 If so, is the credit union only using the temporary exception in situations where it cannot determine the exact amounts for reasons beyond its control because a person other than the credit union or with which the credit union has no correspondent relationship sets the exchange rate required to be disclosed or imposes a fee required to be disclosed? (§ 1005.32(a) and Comment 32(a)(1)-1)      
Permanent Exception for Transfers to Certain Countries – § 1005.32(b)(1)
Permanent Exception for Transfers to Certain Countries – § 1005.32(b)(1)
Item Description YES NO N/A
27 Does the credit union appropriately rely on the most recent list provided by CFPB when using estimates under the permanent exception in § 1005.32(b)(1) for transactions to those countries?      
28 If the credit union provides estimates for transactions in a country which does not appear on the safe harbor list published by CFPB, does the entity appropriately determine that the laws of or the method by which transactions are conducted in the recipient country do not permit the determination of exact amounts? (§ 1005.32(b)(1)(ii) and Comment 32(b)-5)      

NOTE: A credit union cannot rely on the CFPB list if it has information that the laws of a country on the list permit exact disclosures.

Permanent Exception for Transfers Scheduled Before the Date of Transfer – § 1005.32(b)(2)
Permanent Exception for Transfers Scheduled Before the Date of Transfer – § 1005.32(b)(2)
Item Description YES NO N/A
29 For transfers scheduled five or more business days before the date of the transfer for which estimates may be provided, does the credit union comply with the requirements of § 1005.32(b)(2)?      
Bases for Estimates – § 1005.32(c)
Bases for Estimates – § 1005.32(c)
Item Description YES NO N/A
30 Are the bases used to derive the estimates under § 1005.32(a), (b)(1), and (b)(2) in compliance with the method for disclosing estimates in § 1005.32(c)?      

NOTE: For transfers scheduled five or more business days before the date of the transfer for which estimates may be provided, the requirements of § 1005.32(d) apply.

Bases for Estimates – § 1005.32(c)
Item Description YES NO N/A
31 Does the credit union use the approaches listed in the rule to estimate: N/A N/A N/A
31(a) Exchange rate?      
31(b) Transfer amount in which funds will be received?      
31(c) Covered third-party fees?      
31(d) The amount of currency that will be received by the designated recipient?      
32 If estimates are based on an approach that is not one of the listed bases, does the designated recipient receive the same or greater amount of funds than the remittance transfer credit union disclosed?      
Procedures for Resolving Errors – § 1005.33
Procedures for Resolving Errors – § 1005.33
Item Description YES NO N/A
33 Does the credit union have adequate policies and procedures to address the error resolution requirements applicable to remittance transfers? (§ 1005.33(g))      
34 Do the policies and procedures adequately state what does and does not constitute an error as defined in § 1005.33(a)?      
35 Do the policies and procedures specifically address: N/A N/A N/A
35(a) Timing and content of the sender’s notice of error? (§ 1005.33(b)(1))      
35(b) Credit union’s request for additional information or clarification? (§ 1005.33(b)(2))      
35(c) Time limits for investigation, reporting results, and correcting an error? (§ 1005.33(c))      
35(d) Sender’s request for documentation that the credit union relied on to make a decision? (§ 1005.33(d))      
35(e) Keeping records related to error investigations? (§ 1005.33(g)(2) and § 1005.13)      
36 Does the credit union complete its investigation of alleged errors and determine whether an error occurred within 90 days of receiving notice of the error? (§ 1005.33(c))      
37 Does the credit union report investigation results to the sender within three business days after completing its investigation and include notice of any remedies available for correcting any error determined to have occurred and provide remedy within one business day? (§ 1005.33(c))      

NOTE: The credit union can ask the sender to designate a preferred remedy when the sender provides notice of the error but must indicate that a resend remedy may be unavailable if the error occurred because the sender provided incorrect or insufficient information.

Procedures for Resolving Errors – § 1005.33 - Continued
Item Description YES NO N/A
38 If the sender provided an incorrect account number or recipient institution identifier, does the credit union comply with the requirements of § 1005.33(h) before determining that no error occurred?      
39 If the credit union determines that no error or a different error occurred, does it provide a written explanation of the findings, and note the sender’s right to request the documents the credit union relied on to make its determination? (§ 1005.33(d))      
40 If the credit union provides a default remedy, does it correct the error within one business day or as soon as reasonably practicable, after the reasonable time (deemed to be ten business days) or the sender designates that the remedy has passed?      

NOTE: A default remedy is not applicable where the sender provided incorrect or insufficient information.

Procedures for Resolving Errors – § 1005.33 - Continued
Item Description YES NO N/A
41 If the sender requests a refund (for errors other than those related to failure to deliver by the disclosed date where the sender provided incorrect or insufficient information), does the credit union refund within one business day or as soon as reasonably practicable thereafter? (§ 1005.33(c)(2)(A))      

NOTE: The credit union may generally, at its discretion, issue a refund either in cash or in the same form of payment that was initially provided by the sender for the remittance transfer.

Procedures for Resolving Errors – § 1005.33 - Continued
Item Description YES NO N/A
42 If the sender requests delivery of the amount appropriate to correct the error and the error did not occur because the sender provided incorrect or insufficient information, does the credit union correct the error within one business day, or as soon as reasonably practicable, applying the same exchange rate, fees, and taxes stated in the disclosure provided in connection with the unsuccessful remittance transfer attempt? (Comment 33(c)-3)      
43 In the case of errors involving incorrect or insufficient information the sender provided for the transfer, does the credit union comply with the requirements of § 1005.33(c)(2)(iii)?      
44 If the credit union determines that an error occurred that relates to: N/A N/A N/A
44(a) An incorrect amount paid by the sender; N/A N/A N/A
44(b) A computational or bookkeeping error made by the remittance transfer provider; or N/A N/A N/A
44(c) Failure to make the amount of currency stated in the disclosures available to the designated recipient; Does the credit union either: N/A N/A N/A
44(d) Refund the amount of funds provided by the sender (in case of a transaction that was not properly transmitted)?      
44(e) Refund the amount appropriate to resolve the error? or      
44(f) Make available to the designated recipient the amount appropriate to resolve the error without additional cost to the sender or the designated recipient? (§ 1005.33(c)(2)(i))      
45 If the error relates to the failure to make funds available to the designated recipient by the disclosed date of availability (unless the sender provided incorrect or insufficient information), does the credit union: N/A N/A N/A
45(a) Either (i) refund the amount of funds that was not properly transmitted, or the amount appropriate to resolve the error to the sender; or (ii) make available to the designated recipient the amount appropriate to resolve the error; and      
45(b) Refund to the sender any fees and, to the extent not prohibited by law, taxes imposed for the remittance transfer? (§ 1005.33(c)(2)(ii))      
46 If an error occurred, does the credit union impose a charge for any aspect of the error-resolution process (including documentation or investigation)? (Comment 1005.33(c)-9) If so, is the credit union in violation of § 1005.33(c)?      
47 Does the credit union retain policies and procedures and documentation, including those related to error investigations, for not less than two years from the date a notice of error was submitted to the credit union or action was required to be taken by the credit union? (§ 1005.33(g) and § 1005.13)      
Procedures for Cancellation and Refund of Remittance Transfers – § 1005.34
Procedures for Cancellation and Refund of Remittance Transfers – § 1005.34
Item Description YES NO N/A
48 Does the credit union comply with any oral or written request to cancel a remittance transfer (except for transfers scheduled three or more business days before the date of transfer) from the sender that is received no later than 30 minutes after the sender makes payment in connection with the remittance transfer? (§ 1005.34(a))      

NOTE: The request to cancel must enable the credit union to identify the sender’s name and address or telephone number and the particular transfer to be cancelled, and the transferred funds must not have been picked up by the designated recipient or deposited into an account of the designated recipient. (§ 1005.34(a)(1) and (2))

Procedures for Cancellation and Refund of Remittance Transfers – § 1005.34 - Continued
Item Description YES NO N/A
49 If a sender provides a timely request to cancel a remittance transfer, does the credit union refund all funds provided by the sender for the remittance transfer at no additional cost to the sender, within three business days of receiving the request? (§ 1005.34(b))      

NOTE: The funds to be refunded include any fees and, to the extent not prohibited by law, taxes that have been imposed for the transfer, whether the fee or tax was assessed by the credit union or a third party, such as an intermediary institution, the agent or bank in the recipient country, or a state or other governmental body. (§ 1005.34(b))

Acts of Agents – § 1005.35
Acts of Agents – § 1005.35
Item Description YES NO N/A
50 Has the credit union established and maintained policies or procedures, including policies, compliance procedures or other appropriate oversight measures designed to assure compliance by an agent or authorized delegate acting for such credit union? Consider:      
50(a) The degree of control the agent exercises over the remittance transfer activities performed on the credit union’s behalf; N/A N/A N/A
50(b) The quality and frequency of training provided to ensure that agents are aware of the regulatory requirements and the credit union’s internal policy guidelines; and N/A N/A N/A
50(c) The adequacy of the credit union’s oversight of agents’ activities. N/A N/A N/A
Transfers Scheduled Before the Date of Transfer – § 1005.36
Transfers Scheduled Before the Date of Transfer – § 1005.36 - Continued
Item Description YES NO N/A
51 For one-time transfers scheduled five or more business days in advance or for the first in a series of preauthorized remittance transfers, does the credit union provide either a pre-payment disclosure and a receipt or a combined disclosure at the time the sender requests the transfer but before payment? (§ 1005.36(a)(1)(i))      

NOTE: If any of the disclosures contain estimates, the credit union must mail or deliver an additional receipt no later than one business day after the date of the transfer. If the transfer involves the transfer of funds from the sender’s account held by the credit union, this receipt may be provided on or with the next periodic statement, or within 30 days after the date of the transfer if a periodic statement is not provided. (§ 1005.36(a)(1)(ii))

Item Description YES NO N/A
52 For each subsequent preauthorized remittance transfer, does the credit union furnish an updated receipt if any of the information (other than temporary disclosures or disclosures that are permitted to be estimated) on the most recent receipt is no longer accurate? (§ 1005.36(a)(2)(i))      

NOTE: The receipt must clearly and conspicuously indicate that it contains updated disclosures and must be mailed or delivered to the sender within a reasonable time before the scheduled date of the next subsequent preauthorized remittance transfer. A disclosure mailed no later than ten business days or hand or electronically delivered no later than five business days is deemed to have been provided within a reasonable time. (§ 1005.36(a)(2)(i) and Comment 36(a)(2)-3)

Transfers Scheduled Before the Date of Transfer – § 1005.36 - Continued
Item Description YES NO N/A
53 If there is no updated information and the remittance transfer does not involve the transfer of funds from the sender’s account held by the credit union, does the credit union mail or deliver to the sender a receipt no later than one business day after the date of the transfer for each subsequent preauthorized transfer? (§ 1005.36(a)(2)(ii))      
54 If there is no updated information and the remittance transfer involves the transfer of funds from the sender’s account held by the credit union, is the receipt provided on or with the next periodic statement for that account, or within 30 days after the date of the transfer if a periodic statement is not provided? (§ 1005.36(a)(2)(ii))      
55 For any subsequent transfer in a series of preauthorized remittance transfers, does the credit union disclose the date of the subsequent transfer using the term “Future Transfer Date” or a substantially similar term, a statement of the sender’s cancellation rights, and the name, telephone number(s), and website of the remittance transfer provider no more than 12 months, and no less than five business days prior to, the date of the subsequent preauthorized remittance transfer? (§ 1005.36(d))      

NOTE: While the rule generally provides flexibility as to when and where future transfer dates may be disclosed, for any subsequent preauthorized remittance transfer for which the date of transfer is four or fewer business days after the date payment is made, the disclosure must generally be provided on or with the receipt for the initial transfer in that series. (§ 1005.36(d)(2)(ii))

Transfers Scheduled Before the Date of Transfer – § 1005.36 - Continued
Item Description YES NO N/A
56 Does the credit union comply with any oral or written request to cancel any remittance transfer scheduled by the sender at least three business days before the date of the remittance transfer? (§ 1005.36(c))      

NOTE: The request to cancel must:

  • Enable the credit union to identify the sender’s name and address or telephone number and the particular transfer to be cancelled; and
  • Be received by the credit union at least three business days before the scheduled date of the remittance transfer. (§ 1005.36(c))

 


Footnotes

[1] The term “overdraft service” means a service under which a credit union assesses a fee or charge on a consumer's account held by the credit union for paying a transaction (including a check or other item) when the consumer has insufficient or unavailable funds in the account (12 CFR 1005.17(a)).  “Overdraft service” does not include a service that transfers funds from another account held by a consumer or a line of credit. 

[2] Subpart B provides for a 100-transfer “safe harbor.”  To qualify for the “safe harbor,” a credit union must have provided 100 or fewer remittance transfers in the current and the previous calendar year.  If a credit union crosses the 100-transfer threshold either in the previous or the current calendar year, it is deemed to be providing remittance transfers in its “normal course of business” and must begin complying with the rule within a reasonable period of time (not to exceed six months) unless, under the facts and circumstances, it would not be deemed a provider.