The Federal Reserve Board eagle logo links to home page
Cover of Bank Holding Company 

Consumer Compliance Handbook
June 2011 Update

The June 2011 update to the handbook reflects regulatory changes to four chapters: Regulation E (Electronic Fund Transfer), Regulations Q and D (Interest on Demand Deposits/Reserve Requirements), the Fair Credit Reporting Act (FCRA), and Regulation Z (Truth in Lending).

The examination procedures for Regulation E have been revised to incorporate amendments to the rule. Section 205.17 prohibits institutions from charging overdraft fees for ATM and one-time debit card transactions unless the consumer affirmatively consents. Section 205.20 restricts fees and expiration dates on gift cards, and it also requires that gift card terms be clearly stated.

Changes to the Regulation D examination procedures reflect statutory changes that eliminated the monthly, 3-item limit on transfers made by check, debit card, or similar order via a savings deposit and payable to a third party. The 6-item limit remains in effect. Future changes will be made to the Regulation Q and Regulation D chapter to reflect the Board's repeal of Regulation Q, once finalized. Regulation Q prohibits the payment of interest on demand deposits by institutions that are members of the Federal Reserve System.

Module 3 (Disclosures to Consumers and Miscellaneous Requirements) of the FCRA chapter was also revised to include examination procedures for the regulation requiring a risk-based pricing notice. The regulation details the risk-based pricing notice requirement, which is intended to alert consumers to the existence of negative information in their consumer reports so that the consumers can, if they choose, check their consumer reports for accuracy and correct any inaccurate information.

The Regulation Z examination procedures include revisions intended to protect borrowers in the residential mortgage market. The examination procedure revisions address mortgage repayment disclosures, including the number, amount, and timing of scheduled payments, as well as potential changes in interest rates. The revisions also include new provisions regarding: prohibited payments to loan originators, prohibitions on steering consumers to transactions that result in greater compensation for loan originators, independence of appraisers when assigning value to a consumer's principal dwelling, and the delivery of the notice of sale or transfer of mortgage loans.

Filing Instructions
To maintain an updated print version of the handbook, use the following instructions:

Electronic Fund Transfers pages:
Behind the "Regulation E" tab
Reg. E • pp. 1-24 (dated 6/09)Reg. E • pp. 1-41 (dated 6/11)
Interest on Demand Deposits/Reserve Requirements pages:
Behind the "Regulations Q and D" tab
Regs. Q and D • pp. 1-5 (dated 1/06)Regs. Q and D • pp. 1-5 (dated 6/11)
Fair Credit Reporting Act pages:
Behind the "Fair Credit Reporting" tab
FCRA • pp. 1-30 (dated 6/09),
FCRA • pp. 1-63 (dated 6/11)
  pp. 31-47 (dated 12/10)
Truth in Lending pages:
Behind the "Regulation Z" tab
Reg. Z • pp. 1-87 (dated 12/10)Reg. Z • pp. 1-93 (dated 6/11)

Consumer Compliance Handbook

Previous Update: December 2010