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ATTACHMENT B 

Electronic Fund Transfer Act, 15 U.S.C. §§ 1693-1693r 
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§ 1693 TITLE 15--COMMERCE AND TRADE Page 188 

(iv) contacts any alleged offender referred (6) a check issued to pay an obligation arising 

to in subparagraph (A) for purposes of par­ from a transaction that was illegal in the juristicipating in a program referred to in such diction of the State or district attorney at the 

paragraph- time the check was rriade, drawn, or delivered. 

(!) only as a result of any determination by the State or district attorney that (c) Definitions 

probable cause of a bad check violation For purposes of this section, the following defiunder State penal law exists, and that con­ nitions shall apply: 

tact with the alleged offender for purposes 

of participation in the program is appro­ (1) State or district attorney 

priate; and The term "State or district attorney" means (II) the alleged offender has failed to the chief elected or appointed prosecuting atpay the bad check after demand for pay­ torney in a district, county (as defined in sec­ ment, pursuant to State law, is made for tion 2 of title 1), municipality, or comparable 

payment of the check amount; jurisdiction, including State attorneys general 

who act as chief elected or appointed prosecut­ (v) includes as part of an initial written ing attorneys in a district, county (as so de­ communication with an alleged offender a fined), municipality or comparable jurisdiction, clear and conspicuous statement that--

who may be referred to by a variety of titles (I) the alleged offender may dispute the 

such as district attorneys, prosecuting attor­ validity of any alleged bad check violation; 

neys, commonwealth's attorneys, solicitors, coun­ (II) where the alleged offender knows, or ty attorneys, and state's attorneys, and who are has reasonable cause to believe, that the responsible for the prosecution of State crimes alleged bad check violation is the result and violations of jurisdiction-specific local or­ of theft or forgery of the check, identity dinances. theft, or other fraud that is not the result 

of the conduct of the alleged offender, the (2) Check alleged offender may file a crime report 

with The term ''check'' has the same meaning as the appropriate law enforcement in section 5002(6) of title 12. agency; and 

(III) if the alleged offender notifies the (3) Bad check violation 

private entity or the district attorney in The term "bad check violation" means a vio­ writing, not later than 30 days after being lation of the applicable State criminal law re­ contacted for the first time pursuant to lating to the writing of dishonored checks. clause (iv), that there is a dispute pursuant to this subsection, before further res­ (Pub. L. 90-321, title VIII, § 818, as added Pub. L. 

titution efforts are pursued, the district 109--351, title VIII, § 801(a)(2), Oct. 13, 2006, 120 Stat. 

attorney or an employee of the district 2004.) 

attorney authorized to make such a determination makes a determination that there SUBCHAPTER VI-ELECTRONIC FUND 

is probable cause to believe that a crime TRANSFERS 

has been committed; and 

(vi) charges only fees in connection with § 1693. Congressional findings and declaration of 

services under the contract that have been purpose 

authorized by the contract with the State (a) Rights and liabilities undefined or district attorney. The Congress finds that the use of electronic 

systems to transfer funds provides the potential (b) Certain checks excluded for substantial benefits to consumers. However, 

A check is described in this subsection if the due to the unique characteristics of such sys­ check involves, or is subsequently found to in­ tems, the application of existing consumer pro­ volve- tection legislation is unclear, leaving the rights 

(1) a postdated check presented in connection and liabilities of consumers, financial institutions, with a payday loan, or other similar transac­ and intermediaries in electronic fund transfers 

tion, where the payee of the check knew that undefined. 

the issuer had insufficient funds at the time the 

check was made, drawn, or delivered; (b) Purposes (2) a stop payment order where the issuer act­ It is the purpose of this subchapter to provide a ed in good faith and with reasonable cause in basic framework establishing the rights, liabil­ stopping payment on the check; ities, and responsibilities of participants in elec­ (3) a check dishonored because of an adjust­ tronic fund and remittance transfer systems. The 

ment to the issuer's account by the financial in­ primary objective of this subchapter, however, is stitution holding such account without provid­ the provision of individual consumer rights. ing notice to the person at the time the check 

was made, drawn, or delivered; (Pub. L. 90-321, title IX, § 902, as added Pub. L. 

( 4) a check for partial payment of a debt where 95--630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3728; 

the payee had previously accepted partial pay­ amended Pub. L. 111-203, title X, § 1073(a)(l), July 

ment for such debt; 21, 2010, 124 Stat. 2060.) 

(5) a check issued by a person who was not 

competent, or was not of legal age, to enter into AMENDMENTS 

a legal contractual obligation at the time the 2010-Subsec. (b). Pub. L. 111-203 inserted "and remitcheck was made, drawn, or delivered; or tance'' after ''electronic fund''. 
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Page 189 TITLE 15-COMMERCE AND TRADE § 1693a 

EFFECTIVE DATE OF 2010 AMENDMENT or authorize a financial institution to debit or credit an account. Such term includes, but is Amendment by Pub. L. 111-203 effective 1 day after 

July 21, 2010, except as otherwise provided, see section 4 not limited to, point-of-sale transfers, automatof Pub. L. 111-203, set out as an Effective Date note un­ ed teller machine transactions, direct deposits 

der section 5301 of Title 12, Banks and Banking. or withdrawals of funds, and transfers initiated 

by telephone. Such term does not include- EFFECTIVE DATE (A) any check guarantee or authorization 

Pub. L. 90-321, title IX, § 923, formerly § 921, as added by service which does not directly result in a Pub. L. 95-630, title XX, §2001, Nov. 10, 1978, 92 Stat. 3741, debit or credit to a consumer's account: 3 

renumbered § 922, Pub. L. 111-24, title IV, § 401(1), May 22, (B) any transfer of funds, other than those 

2009, 123 Stat. 1751; renumbered §923, Pub. L. 111-203, processed by automated clearinghouse, made title 1073(a)(3), July 21, 2010, 124 Stat. 2060, provided by a financial institution on behalf of a con­ that: title [enacting this subchapter] takes effect 

upon the expiration of eighteen months from the date of sumer by means of a service that transfers 

its enactment [Nov. 10, 1978], except that sections 909 and funds held at either Federal Reserve banks or 

911 [sections 1693g, 1693i of this title] take effect upon other depository institutions and which is not 

the -,11.vu.,,c,,vll of ninety days after the date of enact­ designed primarily to transfer funds on be­ ment. half of a consumer; [Pub. L. 111-203, § 1073(a)(3), which directed renumber­ (C) any transaction the primary purpose of 

ing of section 922 of Pub. L. 90-321 as section 923 effec­ which is the purchase or sale of securities or tive 1 day after July 21, 2010, was executed after the re­ commodities through a broker-dealer registered num1hei·in2' of section 921 of Pub. L. 90-321 as section 922 

by Pub. 111-24, § 401(1), effective 15 months after May with or regulated by the Securities and Ex22, 2009, to reflect the probable intent of Congress.] change Commission; 

(D) any automatic transfer from a savings SHORT TITLE account to a demand deposit account pursuThis subchapter known as the "Electronic Fund Trans­ ant to an agreement between a consumer and 

fer Act" see Short Title note set out under section 1601 a financial institution for the purpose of cov­ of this ering an overdraft or maintaining an agreed 

upon minimum balance in the consumer's de­

§ 1693a. Definitions mand deposit account; or 

As used in this subchapter- (E) any transfer of funds which is initiated 

(1) the term "accepted card or other means of by a telephone conversation between a consumaccess" means a card, code, or other means of er and an officer or employee of a financial 

access to a consumer's account for the purpose institution which is not pursuant to a prearof initiating electronic fund transfers when the ranged plan and under which periodic or reperson to whom such card or other means of ac­ curring transfers are not contemplated; 

cess was issued has requested and received or as determined under regulations of the Bureau; has signed or has used, or authorized another to (8) the term "electronic terminal" means an use, such card or other means of access for the electronic device, other than a telephone oper­ purpose of transferring money between accounts ated by a consumer, through which a consumer or obtaining money, property, labor, or services; may initiate an electronic fund transfer. Such (2) the term "account" means a demand de­ term includes, but is not limited to, point-of­ posit, savings deposit, or other asset account sale terminals, automated teller machines, and ( other than an occasional or incidental credit cash dispensing machines; balance in an open end credit plan as defined in 1 (9) the term "financial institution" means a section 1602(i) of this title), as described in State or National bank, a State or Federal sav­ regulations of the Bureau, established primar­ ings and loan association, a mutual savings bank, ily for personal, family, or household purposes, a State or Federal credit union, or any other but such term does not include an account held person who, directly or indirectly, holds an ac­ by a financial institution pursuant to a bona count belonging to a consumer; fide trust agreement; 2 (10) the term "preauthorized electronic fund ( 4) the term "Board" means the Board of transfer" means an electronic fund transfer au­ Governors of the Federal Reserve System; 

(4) 2 thorized in advance to recur at substantially the term "Bureau" means the Bureau of regular intervals; Consumer Financial Protection; (11) the term "State" means any State, terri­ (5) the term "business day" means any day tory, or possession of the United States, the on which the offices of the consumer's financial District of Columbia, the Commonwealth of Puerto institution involved in an electronic fund trans­ Rico, or any political subdivision of any of the fer are open to the public for carrying on sub­ foregoing; and stantially all of its business functions; (12) the term "unauthorized electronic fund (6) the term "consumer" means a natural per­ transfer'' means an electronic fund transfer from 

son; a consumer's account initiated by a person other (7) the term "electronic fund transfer" means than the consumer without actual authority to 

any transfer of funds, other than a transaction initiate such transfer and from which the con­ originated by check, draft, or similar paper in­ sumer receives no benefit, but the term does not 

strument, which is initiated through an elec­ include any electronic fund transfer (A) initiat­ tronic terminal, telephonic instrument, or com­ ed by a person other than the consumer who puter or magnetic tape so as to order, instruct, was furnished with the card, code, or other means 

of access to such consumer's account by such 

1 See References in Text note below. 2 So in original. There are two pars. designated "( 4)" and no par. 3 (3). So in original. The colon probably should be a semicolon. 
§ 1693b TITLE 15---COMMERCE AND TRADE Page 190 

consumer, unless the consumer has notified the and the effects upon competition in the provifinancial institution involved that transfers by sion of electronic banking services among large 

such other person are no longer authorized, (B) and small financial institutions and the availinitiated with fraudulent intent by the consum­ ability of such services to different classes of 

er or any person acting in concert with the con­ consumers, particularly low income consumers, 

sumer, or (C) which constitutes an error com­ (3) 1 to the extent practicable, the Board shall 

mitted by a financial institution. demonstrate that the consumer protections of 

the proposed regulations outweigh the compli­ (Pub. L. 90-321, title IX, § 903, as added Pub. L. ance costs imposed upon consumers and finan­ 95--630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3728; cial institutions, and amended Pub. L. 111-203, title X, § 1084(1), (2), July ( 4) 1 any proposed regulations and accompa­ 21, 2010, 124 Stat. 2081.) nying analyses shall be sent promptly to ConREFERENCES IN TEXT gress by the Board. 

Section 1602(1) of this title, referred to in par. (2), was (b) Issuance of 1nodel clauses 

redesignated section 1602(j) of this title by Pub. L. 111-203, The Bureau shall issue model clauses for option­ title X, § llOOA(l)(A), July 21, 2010, 124 Stat. 2107. al use by financial institutions to facilitate com­ AMENDMENTS pliance with the disclosure requirements of sec2010-Pub. L. 111-203, § 1084(1), which directed the sub­ tion 1693c of this title and to aid consumers in 

stitution of "Bureau" for "Board" wherever appearing, understanding the rights and responsibilities of 

was executed by making the substitution in pars. (2) and participants in electronic fund transfers by utiliz­

(6) but not in par. (3), to reflect the probable intent of ing readily understandable language. Such model 

Congress. clauses shall be adopted after notice duly given Par. (3). Pub. L. 111-203, § 1084(2)(A), redesignated par. in the Federal Register and opportunity for pub­ (3) as (4) defining the term "Board". lic comment in accordance with section 553 of Par. (4). Pub. L. 111-203, § 1084(2)(B), which directed ad­ title 5. With respect to the disclosures required dition of par. (4) defining the term "Bureau" after par. 

(3), was executed by making the addition after par. (4) by section 1693c(a)(3) and (4) of this title, the Budefining the term "Board", to reflect the probable intent reau shall take account of variations in the servof Congress. ices and charges under different electronic fund 

Pub. L. 111-203, § 1084(2)(A), redesignated par. (3) as (4) transfer systems and, as appropriate, shall issue 

defining the term "Board". Former par. (4) redesignated alternative model clauses for disclosure of these 

(5). differing account terms. 

Pars. (5) to (12). Pub. L. 111-203, § 1084(2)(A), redesignated pars. (4) to (11) as (5) to (12), respectively. (c) Criteria; 1nodification of require1nents 

EFFECTIVE DATE OF 2010 AMENDMENT Regulations prescribed hereunder may contain 

such classifications, differentiations, or other pro­ Amendment by Pub. L. 111-203 effective on the desig­ visions, and may provide for such adjustments nated transfer date, see section 1100H of Pub. L. 111-203, and exceptions for any class of electronic fund set out as a note under section 552a of Title 5, Government transfers or remittance transfers, as in the judg­ Organization and Employees. ment of the Bureau are necessary or proper to ef­

§ 1693b. Regulations fectuate the purposes of this subchapter, to prevent circumvention or evasion thereof, or to fa­ (a) Prescription by the Bureau and the Board cilitate compliance therewith. The Bureau shall 

(1) In general by regulation modify the requirements imposed 

Except as provided in paragraph (2), the Bu­ by this subchapter on small financial institutions 

reau shall prescribe rules to carry out the pur­ if the Bureau determines that such modifications 

poses of this subchapter. are necessary to alleviate any undue compliance 

burden on small financial institutions and such (2) Authority of the Board modifications are consistent with the purpose and The Board shall have sole authority to pre­ objective of this subchapter. scribe rules-

(A) to carry out the purposes of this sub­ (d) Applicability to service providers other than 

chapter with respect to a person described in certain financial institutions 

section 5519(a) of title 12; and (1) In general (B) to carry out the purposes of section 16930--2 

If electronic fund transfer services are made of this title. available to consumers by a person other than a In prescribing such regulations, the Board shall: financial institution holding a consumer's ac­ (1) 1 consult with the other agencies referred count, the Bureau shall by regulation assure to in section 16930 2 of this title and take into that the disclosures, protections, responsibilities, 

account, and allow for, the continuing evolution and remedies created by this subchapter are of electronic banking services and the technol­ made applicable to such persons and services. 

ogy utilized in such·services, 1 (2) State and local goverDIDent electronic ben- (2) prepare an analysis of economic impact 

which efit transfer systeIDS considers the costs and benefits to financial institutions, consumers, and other users of (A) "Electronic benefit transfer syste1n" deelectronic fund transfers, including the extent fined 

to which additional documentation, reports, In this paragraph, the term "electronic benrecords, or other paper work would be required, efit transfer system"-

(i) means a system under which a govern1 So in original. See 2010 Amendment note below. ment agency distributes needs-tested bene­ 2 See References in Text note below. fits by establishing accounts that may be 

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Page 191 TITLE 15-COMMERCE AND TRADE § 1693b 

accessed by recipients electronically, such (ii) the consumer elects to continue in the 

as through automated teller machines or manner necessary to effect the transaction 

point-of-sale terminals; and after receiving such notice. 

(ii) does not include employment-related (D) Definitions 

payments, including salaries and pension, re­ For purposes of this paragraph, the followtirement, or unemployment benefits estab­ ing definitions shall apply: lished by a Federal, State, or local govern­ (i) Automated teller machine operator ment agency. The term "automated teller machine op­ (B) Exemption generally erator" means any person whoThe disclosures, protections, responsibilities, (I) operates an automated teller machine 

and remedies established under this subchap­ at which consumers initiate electronic fund 

ter, and any regulation prescribed or order is­ transfers; and 

sued by the Bureau in accordance with this (II) is not the financial institution that 

subchapter, shall not apply to any electronic holds the account of such consumer from 

benefit transfer system established under State which the transfer is made. 

or local law or administered by a State or lo­ (ii) Electronic fund transfer 

cal government. The term "electronic fund transfer" in­

(C) Exception for direct deposit into recipi­ cludes a transaction that involves a balance 

ent's account inquiry initiated by a consumer in the same manner as an electronic fund transfer, wheth­ Subparagraph (B) shall not apply with re­ er or not the consumer initiates a transfer spect to any electronic funds transfer under of funds in the course of the transaction. an electronic benefit transfer system for a deHost transfer services posit directly into a consumer account held (iii) 

by the recipient of the benefit. The term "host transfer services" means any electronic fund transfer made by an auto­ (D) Rule of construction mated teller machine operator in connec­ No provision of this paragraph- tion with a transaction initiated by a con­ (i) affects or alters the protections other­ sumer at an automated teller machine operwise applicable with respect to benefits es­ ated by such operator. 

tablished by any other provision 3 Federal, 

State, or local law; or (e) Deference 

(ii) otherwise supersedes the application No provision of this subchapter may be con­ of any State or local law. strued as altering, limiting, or otherwise affecting the deference that a court affords to- (3) Fee disclosures at automated teller machines (1) the Bureau in making determinations re­ (A) In general garding the meaning or interpretation of any 

The regulations prescribed under paragraph provision of this subchapter for which the Bu­

(1) shall require any automated teller machine reau has authority to prescribe regulations; or 

operator who imposes a fee on any consumer (2) the Board in making determinations refor providing host transfer services to such garding the meaning or interpretation of secconsumer to provide notice in accordance with tion 16930-2 of this title. 

subparagraph (B) to the consumer (at the time (Pub. L. 90-321, title IX, § 904, as added Pub. L. 

the service is provided) of- 95---630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3730; (i) the fact that a fee is imposed by such amended Pub. L. 104--193, title VIII, § 891, title IX, operator for providing the service; and § 907, Aug. 22, 1996, 110 Stat. 2346, 2350; Pub. L. 

(ii) the amount of any such fee. 106--102, title VII, §702, Nov. 12, 1999, 113 Stat. 1463; 

(B) Notice requirement Pub. L. 111-203, title X, §§ 1073(a)(2), 1084(1), (3), 

July 21, 2010, 124 Stat. 2060, 2081; Pub. L. 112-216, The notice required under clauses (i) and 1, Dec. 20, 2012, 126 Stat. 1590.) of subparagraph (A) with respect to any § (ii) 

fee described in such subparagraph shall ap­ REFERENCES IN TEXT 

pear on the screen of the automated teller 

machine, or on a paper notice issued from such Section 16930 of this title, referred to in subsec. (a)(l), 

machine, after the transaction is initiated and was in the original "section 917", and was translated as 

meaning section 918 of Pub. L. 90-321 to reflect the prob­ before the consumer is irrevocably committed able intent of Congress and the renrunbering of section to completing the transaction. 917 of Pub. L. 90--321 as section 918 by Pub. L. 111-24, title 

(C) Prohibition on fees not properly disclosed IV, § 401, May 22, 2009, 123 Stat. 1751. 

and explicitly assumed by consumer AMENDMENTS No fee may be imposed by any automated 

teller machine operator in connection with any 2012-Subsec. (d)(3)(B). Pub. L. 112-216, in subpar. headelectronic fund transfer initiated by a consum­ ing, substituted "requirement" for "requirements" and, 

in text, substituted "The notice required under clauses er for which a notice is required under sub­ (i) and (ii)" for paragraph (A), unless- "(i) ON THE MACHINE.-The notice required under clause (i) the consumer receives such notice in (i) of subparagraph (A) with respect to any fee described 

accordance with subparagraph (B); and in such subparagraph shall be posted in a prominent and 

conspicuous location on or at the automated teller ma­ chine at which the electronic fund transfer is initiated 3 So in original. Probably should be followed by "of", by the consruner. 
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§ 1693c TITLE 15---COMMERCE AND TRADE Page 192 

"(ii) ON THE SCREEN.-The notice required under clauses Amendment by section 1084(1), (3) of Pub. L. 111-203 ef­

(i) and (ii)" fective on the designated transfer date, see section 1100H 

and struck out ", except that during the period begin­ of Pub. L. 111-203, set out as a note under section 552a of 

ning on November 12, 1999, and ending on December 31, Title 5, Government Organization and Employees. 

2004, this clause shall not apply to any automated teller 

machine that lacks the technical capability to disclose § 1693c. Terms and conditions of transfers 

the notice on the screen or to issue a paper notice after 

the transaction is initiated and before the consumer is (a) Disclosures; time; form; contents 

irrevocably committed to completing the transaction" The terms and conditions of electronic fund transafter "completing the transaction". fers involving a consumer's account shall be dis­ 2010-Pub. L. 111-203, § 1084(1), substituted "Bureau" closed at the time the consumer contracts for an for "Board" wherever appearing in subsecs. (b) to (d). electronic fund transfer service, in accordance with Subsec. (a). Pub. L. 111-203, § 1084(3)(A), substituted "Pre­ regulations of the Bureau. Such disclosures shall scription by the Bureau and the Board" for "Prescription by Board'' in heading that had been supplied edi­ be in readily understandable language and shall 

torially and substituted initial pars. (1) and (2), relating include, to the extent applicableto the Bureau's prescription of rules and authority of the (1) the consumer's liability for unauthorized 

Board, for first sentence of former introductory provi­ electronic fund transfers and, at the financial 

sions which read as follows: "The Board shall prescribe institution's option, notice of the advisability of regulations to carry out the purposes of this subchap­ prompt reporting of any loss, theft, or unau­ ter." Second sentence of former introductory provisions thorized use of a card, code, or other means of was redesignated as concluding provisions of par. (2) to 

access; reflect the probable intent of Congress. 

Subsec. (c). Pub. L. 111-203, § 1073(a)(2), inserted "or re­ (2) the telephone number and address of the 

mittance transfers" after "electronic fund transfers". person or office to be notified in the event the 

Subsec. (e). Pub. L. 111-203, § 1084(3)(B), added subsec. consumer believes than 1 an unauthorized· elec­

(e). tronic fund transfer has been or may be effected; 1999--Subsec. (d)(3). Pub. L. 106--102 added par. (3). (3) the type and nature of electronic fund trans­ 199~Subsec. (d). Pub. L. 104-193, § 907, which directed fers which the consumer may initiate, including the amendment of subsec. (d), was not executed because 

any limitations on the frequency or dollar amount of similar amendment by Pub. L. 104-193, § 891. See be­ of such transfers, except that the details of such low. Section 907 of Pub. L. 104-193 provided that subsec. 

(d) was to be amended by inserting subsec. (d) heading, limitations need not be disclosed if their conby designating existing provisions as par. (1) and insert­ fidentiality is necessary to maintain the secuing heading, and by adding a new par. (2) reading as fol­ rity of an electronic fund transfer system, as 

lows: determined by the Bureau; 

"(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BEN­ (4) any charges for electronic fund transfers 

EFIT TRANSFER PROGRAMS . ...:_ or for the right to make such transfers; "(A) EXEMPTION GENERALLY.-The disclosures, pro­ (5) the consumer's right to stop payment of a tections, responsibilities, and remedies established un­ preauthorized electronic fund transfer and the der this subchapter, and any regulation prescribed or order issued by the Board in accordance with this sub­ procedure to initiate such a stop payment order; 

chapter, shall not apply to any electronic benefit trans­ (6) the consumer's right to receive documenfer program established under State or local law or ad­ tation of electronic fund transfers under section 

ministered by a State or local government. 1693d of this title; 

"(B) EXCEPTION FOR DIRE= DEPOSIT INTO RECIPI­ (7) a summary, in a form prescribed by regu­ ENT'S ACCOUNT.-Subparagraph (A) shall not apply with lations of the Bureau, of the error resolution 

respect to any electronic funds transfer under an elec­ provisions of section 1693f of this title and the tronic benefit transfer program for deposits directly consumer's rights thereunder. The financial in­ into a consumer account held by the recipient of the 

stitution shall thereafter transmit such sum­ benefit. 

"(C) RULE OF CONSTRU=ION.-No provision of this mary at least once per calendar year; 

paragraph may be construed as- (8) the financial institution's liability to the 

"(i) affecting or altering the protections otherwise consumer under section 1693h of this title; 

applicable with respect to benefits established by Fed­ (9) under what circumstances the financial ineral, State, or local law; or stitution will in the ordinary course of business 

"(ii) otherwise superseding the application of any disclose information concerning the consumer's State or local law. account to third persons; and "(D) ELECTRONIC BENEFIT TRANSFER PROGRAM DE­

(10) a notice to the consumer that a fee may FINED.-For purposes of this paragraph, the term 'electronic benefit transfer program'- be imposed by-

"(i) means a program under which a government (A) an automated teller machine operator 

agency distributes needs-tested benefits by establish­ (as defined in section 1693b(d)(3)(D)(i) of this 

ing accounts to be accessed by recipients electroni­ title) if the consumer initiates a transfer from 

cally, such as through automated teller machines, or an automated teller machine that is not oper­ point-of-sale terminals; and ated by the person issuing the card or other 

"(ii) does not include employment-related payments, means of access; and including salaries and pension, retirement, or unem­ (B) any national, regional, or local network ployment benefits established by Federal, State, or 

local governments.'' utilized to effect the transaction. 

Pub. L. 104-193, § 891, designated existing provisions as par. (1), inserted subsec. heading and par. (2), and sub­ (b) Notification of changes to consumer 

stituted "If" for "In the event that". A financial institution shall notify a consumer 

ElFFE=IVE DATE OF 2010 AMENDMENT in writing at least twenty-one days prior to the 

effective date of any change in any term or con­ Amendment by section 1073(a)(2) of Pub. L. 111-203 effective 1 day after July 21, 2010, except as otherwise pro­ dition of the consumer's account required to be 

vided, see section 4 of Pub. L. 111-203, set out as an Effective Date note under section 5301 of Title 12, Banks 

and Banking. 1 So in original. Probably should be "that". 
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Page 193 TITLE 15-COMMERCE AND TRADE § 1693d 

disclosed under subsection (a) if such change would fer from the same payor at least once in each suc­ result in greater cost or liability for such con­ cessive sixty-day period, except where the payor sumer or decreased access to the consumer's ac­ provides positive notice of the transfer to the con­ count. A financial institution may, however, im­ sumer, the financial institution shall elect to proplement a change in the terms or conditions of an vide promptly either positive notice to the conaccount without prior notice when such change is sumer when the credit is made as scheduled, or immediately necessary to maintain or restore the negative notice to the consumer when the credit 

security of an electronic fund transfer system or is not made as scheduled, in accordance with reg­ a consumer's account. Subject to subsection (a)(3), ulations of the Bureau. The means of notice electthe Bureau shall require subsequent notification ed shall be disclosed to the consumer in accordif such a change is made permanent. ance with section 1693c of this title. 

(c) Time for disclosures respecting accounts ac­ (c) Periodic statement; contents 

cessible prior to effective date of this sub­ A financial institution shall provide each con­ chapter sumer with a periodic statement for each account 

For any account of a consumer made accessible of such consumer that may be accessed by means to electronic fund transfers prior to the effective of an electronic fund transfer. Except as provided date of this subchapter, the information required in subsections (d) and (e), such statement shall be 

to be disclosed to the consumer under subsection provided at least monthly for each monthly or (a) shall be disclosed not later than the earlier shorter cycle in which an electronic fund transfer 

of- affecting the account has occurred, or every three 

(1) the first periodic statement required by months, whichever is more frequent. The statesection 1693d(c) of this title after the effective ment, which may include information regarding date of this subchapter; or transactions other than electronic fund transfers, (2) thirty days after the effective date of this shall clearly set forthsubchapter. (1) with regard to each electronic fund trans­

(Pub. L. 90-321, title IX, § 905, as added Pub. L. fer during the period, the information described 

95-630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3730; in subsection (a), which may be provided on an 

amended Pub. L. 106-102, title VII, §703, Nov. 12, accompanying document; 

1999, 113 Stat. 1464; Pub. L. 111-203, title X, § 1084(1), (2) the amount of any fee or charge assessed 

July 21, 2010, 124 Stat. 2081.) by the financial institution during the period 

for electronic fund transfers or for account main­ REFERENCES IN TEXT tenance; 

For effective date of this subchapter, referred to in (3) the balances in the consumer's account at 

subsec. (c), see section 921 of Pub. L. 90-321, set out as an the beginning of the period and at the close of 

Effective Date note under section 1693 of this title. the period; and 

AMENDMENTS ( 4) the address and telephone number to be 

used by the financial institution for the pur­ 2010-Subsecs. (a), (b). Pub. L. 111-203 substituted "Bu­ pose of receiving any statement inquiry or no­ reau" for "Board" wherever appearing. tice of account error from the consumer. Such 1999-Subsec. (a)(lO). Pub. L. 106-102 added par. (10). address and telephone number shall be preceded EFFECTIVE DATE OF 2010 AMENDMENT by the caption "Direct Inquiries To:" or other 

Amendment by Pub. L. 111-203 effective on the desig­ similar language indicating that the address 

nated transfer date, see section 1100H of Pub. L. 111-203, and number are to be used for such inquiries or set out as a note under section 552a of Title 5, Govern­ notices. 

ment Organization and Employees. (d) Consumer passbook accounts 

§ 1693d. Documentation of transfers In the case of a consumer's passbook account 

(a) Availability of written documentation to con­ which may not be accessed by electronic fund transsumer; contents fers other than preauthorized electronic fund transFor each electronic fund transfer initiated by a fers crediting the account, a financial institution 

consumer from an electronic terminal, the finan­ may, in lieu of complying with the requirements 

cial institution holding such consumer's account of subsection (c), upon presentation of the passshall, directly or indirectly, at the time the trans­ book provide the consumer in writing with the 

fer is initiated, make available to the consumer amount and date of each such transfer involving 

written documentation of such transfer. The doc­ the account since the passbook was last presentumentation shall clearly set forth to the extent ed. 

applicable-- (e) Accounts other than passbook accounts (1) the amount involved and date the transfer In the case of a consumer's account, other than is initiated; a passbook account, which may not be accessed (2) the type of transfer; by electronic fund transfers other than preautho­ (3) the identity of the consumer's account with rized electronic fund transfers crediting the ac­ the financial institution from which or to which 

count, the financial institution may provide a peri­ funds are transferred; odic statement on a quarterly basis which other­ ( 4) the identity of any third party to whom or wise complies with the requirements of subsec­ from whom funds are transferred; and tion (c). (5) the location or identification of the electronic terminal involved. (0 Documentation as evidence 

(b) Notice of credit to consumer In any action involving a consumer, any docuFor a consumer's account which is scheduled to mentation required by this section to be given to 

be credited by a preauthorized electronic fund trans- the consumer which indicates that an electronic 
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§ 1693e TITLE 15--COMMERCE AND TRADE Page 194 

fund transfer was made to another person shall consumer's account, contains an error and the 

be admissible as evidence of such transfer and amount of such error; and 

shall constitute prima facie proof that such trans­ (3) sets forth the reasons for the consumer's 

fer was made. belief (where applicable) that an error has oc­ curred, (Pub. L. 90-321, title IX, § 906, as added Pub. L. 

95-630, title XX, §2001, Nov. 10, 1978, 92 Stat. 3731; the financial institution shall investigate the alamended Pub. L. 111-203, title X, § 1084(1), July 21, leged error, determine whether an error has oc­ 2010, 124 Stat. 2081.) curred, and report or mail the results of such investigation and determination to the consumer AMENDMENTS within ten business days. The financial institu2010-Subsec. (b). Pub. L. 111-203 substituted "Bureau" tion may require written confirmation to be pro­ for "Board". vided to it within ten business days of an oral notification of error if, when the oral notification is EFFECTIVE DATE OF 2010 AM:ENDMENT made, the consumer is advised of such require­ Amendment by Pub. L. 111-203 effective on the desig­ ment and the address to which such confirmation nated transfer date, see section ll00H of Pub. L. 111-203, should be sent. A financial institution which re­ set out as a note under section 552a of Title 5, Government Organization and Employees. quires written confirmation in accordance with 

the previous sentence need not provisionally re­ § 1693e. Preauthorized transfers credit a consumer's account in accordance with 

subsection (c), nor shall the financial institution (a) A preauthorized electronic fund transfer from be liable under subsection (e) if the written con­ a consumer's account may be authorized by the firmation is not received within the ten-day pe­ consumer only in writing, and a copy of such au­ riod referred to in the previous sentence. thorization shall be provided to the consumer when 

made. A consumer may stop payment of a preau­ (b) Correction of error; interest 

thorized electronic fund transfer by notifying the If the financial institution determines that an financial institution orally or in writing at any error did occur, it shall promptly, but in no event 

time up to three business days preceding the sched­ more than one business day after such determinauled date of such transfer. The financial institu­ tion, correct the error, subject to section 1693g of 

tion may require written confirmation to be pro­ this title, including the crediting of interest where 

vided to it within fourteen days of an oral notifi­ applicable. cation if, when the oral notification is made, the 

consumer is advised of such requirement and the (c) Provisional recredit of consumer's account 

address to which such confirmation should be sent. If a financial institution receives notice of an 

(b) In the case of preauthorized transfers from error in the manner and within the time period 

a consumer's account to the same person which specified in subsection (a), it may, in lieu of the 

may vary in amount, the financial institution or requirements of subsections (a) and (b), within 

designated payee shall, prior to each transfer, pro­ ten business days after receiving such notice provide reasonable advance notice to the consumer, visionally recredit the consumer's account for the 

in accordance with regulations of the Bureau, of amount alleged to be in error, subject to section 

the amount to be transferred and the scheduled 1693g of this title, including interest where applidate of the transfer. cable, pending the conclusion of its investigation 

and its determination of whether an error has oc­ (Pub. L. 90-321, title IX, §907, as added Pub. L. curred. Such investigation shall be concluded not 95-630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3733; later than forty-five days after receipt of notice amended Pub. L. 111-203, title X, § 1084(1), July 21, of the error. During the pendency of the investi­ 2010, 124 Stat. 2081.) gation, the consumer shall have full use of the 

AMENDMENTS funds provisionally recredited. 

2010-Subsec. (b). Pub. L. 111-203 substituted "Bureau" (d) Absence of error; finding; explanation for "Board". If the financial institution determines after its 

EFFECTIVE DATE OF 2010 AMENDMENT investigation pursuant to subsection (a) or (c) that 

an error did not occur, it shall deliver or mail to Amendment by Pub. L. 111-203 effective on the desig­ the consumer an explanation of its findings with­ nated transfer date, see section 1100H of Pub. L. 111-203, 

set out as a note under section 552a of Title 5, Govern­ in 3 business days after the conclusion of its inment Organization and Employees. vestigation, and upon request of the consumer promptly deliver or mail to the consumer repro­ § 1693f, Error resolution ductions of all documents which the financial in­

(a) Notification to financial institution of error stitution relied on to conclude that such error did 

not occur. The financial institution shall include If a financial institution, within sixty days af­ notice of the right to request reproductions with ter having transmitted to a consumer documenta­ the explanation of its findings. tion pursuant to section 1693d(a), (c), or (d) of 

this title or notification pursuant to section 1693d(b) (e) Treble damages of this title, receives oral or written notice in If in any action under section 1693m 1 of this which the consumer- title, the court finds that-

(1) sets forth or otherwise enables the finan­ (1) the financial institution did not provision­ cial institution to identify the name and ac­ ally recredit a consumer's account within the 

count number of the consumer; ten-day period specified in subsection (c), and (2) indicates the consumer's belief that the 

documentation, or, in the case of notification 

pursuant to section 1693d(b) of this title, the 1 See References in Text note below. 
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Page 195 TITLE 15--COMMERCE AND TRADE § 1693g 

the financial institution (A) did not make a good as the person authorized to use it, such as by sigfaith investigation of the alleged error, or (B) nature, photograph, or fingerprint or by electrondid not have a reasonable basis for believing ic or mechanical confirmation. In no event, howthat the consumer's account was not in error; ever, shall a consumer's liability for an unauthor­ or ized transfer exceed the lesser of-

(2) the financial institution knowingly and will­ (1) $50; or fully concluded that the consumer's account was (2) the amount of money or value of property 

not in error when such conclusion could not rea­ or services obtained in such unauthorized elecsonably have been drawn from the evidence avail­ tronic fund transfer prior to the time the finanable to the financial institution at the time of cial institution is notified of, or otherwise beits investigation, comes aware of, circumstances which lead to 

the reasonable belief that an unauthorized elec­ then the consumer shall be entitled to treble dam­ 1 tronic fund transfer involving the consumer's ages determined under section 1693m(a)(l) of this account has been or may be effected. Notice un­ title. der this paragraph is sufficient when such steps 

(f) Acts constituting error have been taken as may be reasonably required 

For the purpose of this section, an error con­ in the ordinary course of business to provide 

sists of- the financial institution with the pertinent in­

(1) an unauthorized electronic fund transfer; formation, whether or not any particular offi­

(2) an incorrect electronic fund transfer from cer, employee, or agent of the financial instituor to the consumer's account; tion does in fact receive such information. 

(3) the omission from a periodic statement of Notwithstanding the foregoing, reimbursement need an electronic fund transfer affecting the con­ not be made to the consumer for losses the finan­ sumer's account which should have been includ­ cial institution establishes would not have occurred ed; but for the failure of the consumer to report with­ (4) a computational error by the financial in­ in sixty days of transmittal of the statement (or stitution; in extenuating circumstances such as extended (5) the consumer's receipt of an incorrect amount travel or hospitalization, within a reasonable time of money from an electronic terminal; under the circumstances) any unauthorized elec­ (6) a consumer's request for additional infor­ tronic fund transfer or account error which ap­ mation or clarification concerning an electron­ pears on the periodic statement provided to the ic fund transfer or any documentation required consumer under section 1693d of this title. In ad­ by this subchapter; or dition, reimbursement need not be made to the (7) any other error described in regulations of consumer for losses which the financial institu­ the Bureau. tion establishes would not have occurred but for 

(Pub. L. 90-321, title IX, § 908, as added Pub. L. the failure of the consumer to report any loss or 95-630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3733; theft of a card or other means of access within 

amended Pub. L. 111-203, title X, § 1084(1), July 21, two business days after the consumer learns of 

2010, 124 Stat. 2081.) the loss or theft (or in extenuating circumstances 

such as extended travel or hospitalization, within REFERENCES IN TEXT a longer period which is reasonable under the cirSection 1693m of this title, referred to in subsec. (e), crunstances), but the consumer's liability under was in the original a reference to section 915 of Pub. L. this subsection in any such case may not exceed 

9D-321, and was translated as meaning section 916 of Pub. a total of $500, or the amount of unauthorized 

L. 90-321 to reflect the probable intent of Congress and electronic fund transfers which occur following the renumbering of section 915 of Pub. L. 90-321 as sec­ the close of two business days (or such longer pe­ tion 916 by Pub. L. 111-24, title IV, §401(1), May 22, 2009, 

123 Stat. 1751. riod) after the consruner learns of the loss or theft 

but prior to notice to the financial institution AMENDMENTS under this subsection, whichever is less. 

2010-Subsec. (f)(7). Pub. L. 111-203 substituted "Bu-· (b) Burden of proof rea.u" for "Boa.rd". 

In any action which involves a consruner's li­ EFFECTIVE DATE OF 2010 AMENDMENT ability for an unauthorized electronic fund transAmendment by Pub. L. 111-203 effective on the desig­ fer, the burden of proof is upon the financial innated transfer date, see section 1100H of Pub. L. 111-203, stitution to show that the electronic fund transset out as a note under section 552a of Title 5, Govern­ fer was authorized or, if the electronic fund transment Organization and Employees. fer was unauthorized, then the burden of proof is 

upon the financial institution to establish that 

§ 1693g. Consumer liability the conditions of liability set forth in subsection 

(a) Unauthorized electronic fund transfers; limit (a) have been met, and, if the transfer was initiA ated after the effective date of section 1693c of consumer shall be liable for any unauthorized 

electronic fund transfer involving the account of this title, that the disclosures required to be made 

to the consruner under section 1693c(a)(l) and (2) such consumer only if the card or other means of access utilized for such transfer was an accepted of this title were in fact made in accordance with 

card or other meanas 2 such section. of access and if the issuer 

of such card, code, or other means of access has (c) Determination of limitation on liability provided a means whereby the user of such card, In the event of a transaction which involves code, or other means of access can be identified both an unauthorized electronic fund transfer and 

an extension of credit as defined in section 2 original. should be "means". 1602(e) 2 So in Probably of this title pursuant to an agreement 
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§ 1693h TITLE 15--COMMERCE AND TRADE Page 196 

between the consumer and the financial institu­ (1) an act of God or other circumstance betion to extend such credit to the consumer in the yond its control, that it exercised reasonable 

event the consumer's account is overdrawn, the care to prevent such an occurrence, and that it 

limitation on the consumer's liability for such trans­ exercised such diligence as the circumstances 

action shall be determined solely in accordance required; or 

with this section. (2) a technical malfunction which was known 

to the consumer at the time he attempted to 

(d) Restriction on liability initiate an electronic fund transfer or, in the 

Nothing in this section imposes liability upon a case of a preauthorized transfer, at the time 

consumer for an unauthorized electronic fund trans­ such transfer should have occurred. 

fer in excess of his liability for such a transfer (c) Intent under other applicable law or under any agreement with the consumer's financial institution. In the case of a failure described in subsection 

(a) which was not intentional and which resulted 

(e) Scope of liability from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid Except as provided in this section, a consumer any such error, the financial institution shall be incurs no liability from an unauthorized electron­ liable for actual damages proved. ic fund transfer. 

(Pub. L. 90--321, title IX, § 909, as added Pub. L. (d) Exception for damaged notices 

95-630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3734.) If the notice required to be posted pursuant to 

section 1693b(d)(3)(B)(i) of this title by an auto­ REFERENCES IN TEXT mated teller machine operator has been posted 

Section 1602(e) of this title, referred to in subsec. (c), by such operator in compliance with such section 

was redesignated section 1602(f) of this title by Pub. L. and the notice is subsequently removed, damaged, 

111-203, title X, § llOOA(l)(A), July 21, 2010, 124 Stat. 2107. or altered by any person other than the operator 

of the automated teller machine, the operator shall 

§ 1693h. Liability of financial institutions have no liability under this section for failure to 

comply with section 1693b(d)(3)(B)(i) of this title. (a) Action or failure to act proximately causing 

damages (Pub. L. 90-321, title IX, § 910, as added Pub. L. 

Subject 95-630, title XX, § 2001, Nov. 10, to 1978, subsections 92 Stat. 3735; (b) and (c), a financial amended Pub. L. 106-102, title VII, § 705, Nov. 12, institution shall be liable to a consumer for all 1999, 113 Stat. 1465; Pub. L. 111-203, title X, §1084(1), damages proximately caused by- · July 21, 2010, 124 Stat. 2081.) (1) the financial institution's failure to make 

an electronic fund transfer, in accordance with AMENDMENTS the terms and conditions of an account, in the 2010-Subsec. Pub. correct 111-203 amount substituted or in a timely manner when (a)(l)(E). L. 

''Bureau't for '*Board''. properly instructed to do so by the consumer, 1999-Subsec. (d). Pub. L. 106-102 added subsec. (d). except where-

(A) the consumer's account has insufficient EFFECTIVE DATE OF 2010 AMENDMENT 

funds; Amendment by Pub. L. 111-203 effective on the desig­ (B) the funds are subject to legal process or nated transfer date, see section llOOH of Pub. L. 111-203, 

other encumbrance restricting such transfer; set out as a note under section 552a of Title 5, Govern­

(C) such transfer would exceed an established ment Organization and Employees. 

credit limit; 

(D) an electronic terminal has insufficient § 1693i. Issuance of cards or other means of 

cash to complete the transaction; or access 

(E) as otherwise provided in regulations of (a) Prohibition; proper issuance the Bureau; No person may issue to a consumer any card, 

(2) the financial institution's failure to make code, or other means of access to such consumer's 

an electronic fund transfer due to insufficient account for the purpose of initiating an electronfunds when the financal 1 institution failed to ic fund transfer other thancredit, in accordance with the terms and condi­ (1) in response to a request or application theretions of an account, a deposit of funds to the for; or 

consumer's account which would have provided (2) as a renewal of, or in substitution for, an 

sufficient funds to make the transfer, and accepted card, code, or other means of access, 

(3) the financial institution's failure to stop whether issued by the initial issuer or a succespaynient of a preauthorized transfer from a con­ sor. sumer's account when instructed to do so in accordance with the terms and conditions of the (b) Exceptions 

account. Notwithstanding the provisions of subsection (a), 

a person may distribute to a consumer on an un­

(b) Acts of God and technical malfunctions solicited basis a card, code, or other means of acA financial institution shall not be liable under cess for use in initiating an electronic fund transsubsection (a)(l) or (2) if the financial institution fer from such consumer's account, ifshows by a preponderance of the evidence that its (1) such card, code, or other means of access 

action or failure to act resulted from- is not validated; 

(2) such distribution is accompanied by a complete disclosure, in accordance with section 1693c 1 So in original. Probably should be "financial". of this title, of the consumer's rights and liabil-
Case 2:22-cv-04260 Document 2-2 Filed 07/20/22 Page 11 of 24 PageID #: 218 

Page 197 TITLE !&-COMMERCE AND TRADE § 16931-1 

ities which will apply if such card, code, or other chapter or a waiver given in settlement of a dis­ means of access is validated; pute or action. 

(3) such distribution is accompanied by a clear (Pub. L. 90-321, title IX, § 914, as added Pub. L. explanation, in accordance with regulations of 95-630, title XX, §2001, Nov. 10, 1978, 92 Stat. 3737.) the Bureau, that such card, code, or other means 

of access is not validated and how the consum­ § 16931-1. General-use prepaid cards, gift certifi- er may dispose of such code, card, or other means cates, and store gift cards 

of access if validation is not desired; and (a) Definitions (4) such card, code, or other means of access 

is validated only in response to a request or ap­ In this section, the following definitions shall 

plication from the consumer, upon verification apply: 

of the consumer's identity. (1) Dormancy fee; inactivity charge or fee 

(c) Validation The terms "dormancy fee" and "inactivity 

charge or fee" mean a fee, charge, or penalty For the purpose of subsection (b), a card, code, for non-use or inactivity of a gift certificate, or other means of access is validated when it may store gift card, or general-use prepaid card. be used to initiate an electronic fund transfer. 

(2) General use 1 prepaid card, gift certificate, (Pub. L. 90-321, title IX, § 911, as added Pub. L. and store gift card 95-630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3736; 

amended Pub. L. 111-203, title X, § 1084(1), July 21, (A) General-use prepaid card 

2010, 124 Stat. 2081.) The term ''general-use prepaid card'' means 

a card or other payment code or device issued Ai"\iENDMENTS by any person that is2010-Subsec. (b)(3). Pub. L. 111-203 substituted "Bu­ (i) redeemable at multiple, unaffiliated mer­ reau" for "Board". chants or service providers, or automated 

EFFECTIVE DATE OF 2010 AMENDMENT teller machines; 

(ii) issued in a requested amount, whether Anlendment by Pub. L. 111-203 effective on the desig­ or not that amount may, at the option of nated transfer date, see section 1100H of Pub. L. 111-203, the issuer, be increased in value or reloaded set out as a note under section 552a of Title 5, Government Organization and Employees. · if requested by the holder; 

(iii) purchased or loaded on a prepaid ba­

§ 1693j. Suspension of obligations sis; and 

(iv) honored, upon presentation, by mer­ If a system malfunction prevents the effectua­ chants for goods or services, or at automat­ tion of an electronic fund transfer initiated by a ed teller machines. consumer to another person, and such other per­ (B) Gift certificate son has agreed to accept payment by such means, 

the consumer's obligation to the other person shall The term "gift certificate" means an elecbe suspended until the malfunction is corrected tronic promise that isand the electronic fund transfer may be complet­ (i) redeemable at a single merchant or an 

ed, unless such other person has subsequently, by affiliated group of merchants that share the 

written request, demanded payment by means other same name, mark, or logo; 

than an electronic fund transfer. (ii) issued in a specified amount that may 

not be increased or reloaded; (Pub. L. 90-321, title IX, § 912, as added Pub. L. (iii) purchased on a prepaid basis in ex­ 95-630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3737.) change for payment; and 

(iv) honored upon presentation by such sin­ § 1693k. Compulsory use of electronic fund trans- gle merchant or affiliated group of merchants fers for goods or services. 

No person may- (C) Store gift card (1) condition the extension of credit to a con­ The term "store gift card" . means an elec­ sumer on such consumer's repayment by means tronic promise, plastic card, or other payment of preauthorized electronic fund transfers; or code or device that is- (2) require a consumer to establish an account 

for receipt of electronic fund transfers with a (i) redeemable at a single merchant or an 

affiliated group of merchants that share the particular financial institution as a condition same name, mark, or logo; of employment or receipt of a government benefit. (ii) issued in a specified amount, whether 

or not that amount may be increased in val­

(Pub. L. 90-321, title IX, § 913, as added Pub. L. ue or reloaded at the request of the holder; 95-630, title XX, §2001, Nov. 10, 1978, 92 Stat. 3737.) (iii) purchased on a prepaid basis in exchange for payment; and 

§ 16931. Waiver of rights (iv) honored upon presentation by such sinNo writing or other agreement between a con­ gle merchant or affiliated group of merchants 

sumer and any other person may contain any pro­ for goods or services. 

vision which constitutes a waiver of any right (D) Exclusions 

conferred or cause of action created by this sub­ The terms "general-use prepaid card", "gift chapter. Nothing in this section prohibits, howev­ certificate", and "store gift card" do not iner, any writing or other agreement which grants 

to a consumer a more extensive right or remedy 

or greater protection than contained in this sub- l So in original. Probably should be "General-use". 
Case 2:22-cv-04260 Document 2-2 Filed 07/20/22 Page 12 of 24 PageID #: 219 

§ 1693l-1 TITLE 15-COMMERCE AND TRADE Page 198 

elude an electronic promise, plastic card, or (B) the issuer or vendor of such certificate 

payment code or device that is- or card informs the purchaser of such charge 

(i) used solely for telephone services; or fee before such certificate or card is pur­

(ii) reloadable and not marketed or labeled chased, regardless of whether the certificate as a gift card or gift certificate; or card is purchased in person, over the Inter­

(iii) a loyalty, award, or promotional gift net, or by telephone. 

card, as defined by the Bureau; (4) Exclusion (iv) not marketed to the general public; 

(v) issued in paper form only (including The prohibition under paragraph (1) shall not 

for tickets and events); or apply to any gift certificate-

(vi) redeemable solely for admission to (A) that is distributed pursuant to an award, 

events or venues at a particular location or loyalty, or promotional program, as defined 

group of affiliated locations, which may also by the Bureau; and 

include services or goods obtainable-- (B) with respect to which, there is no mon­

(!) at the event or venue after admis­ ey or other value exchanged. 

sion; or (c) Prohibition on sale of gift cards with expira­ (II) in conjunction with admission to such tion dates events or venues, at specific locations affiliated with and in geographic proximity (1) In general 

to the event or venue. Except as provided under paragraph (2), it shall 

(3) Service fee be unlawful for any person to sell or issue a gift 

certificate, store gift card, or general-use pre­ (A) In general paid card that is subject to an expiration date. 

The term "service fee" means a periodic (2) Exceptions fee, charge, or penalty for holding or use of a 

gift certificate, store gift card, or general-use A gift certificate, store gift card, or generalprepaid card. use prepaid card may contain an expiration date 

if- (B) Exclusion 

(A) the expiration date is not earlier than 5 With respect to a general-use prepaid card, years after the date on which the gift certifi­ the term "service fee" does not include a one­ cate was issued, or the date on which card time initial issuance fee. funds were last loaded to a store gift card or 

(b) Prohibition on imposition of fees or charges general-use prepaid card; and 

(B) the terms of expiration are clearly and (1) In general conspicuously stated. Except as provided under paragraphs (2) through 

(4), it shall be unlawful for any person to im­ (d) Additional rulemaking 

pose a dormancy fee, an inactivity charge or (1) In general fee, or a service fee with respect to a gift cer­ The Bureau shall- tificate, store gift card, or general-use prepaid (A) prescribe regulations to carry out this card. section, in addition to any other rules or reg­ (2) Exceptions ulations required by this subchapter, includA dormancy fee, inactivity charge or fee, or ing such additional requirements as appropriservice fee may be charged with respect to a ate relating to the amount of dormancy fees, 

gift certificate, store gift card, or general-use inactivity charges or fees, or service fees that 

prepaid card, if- may be assessed and the amount of remain­

(A) there has been no activity with respect ing value of a gift certificate, store gift card, 

to the certificate or card in the 12-month pe­ or general-use prepaid card below which such 

riod ending on the date on which the charge charges or may be assessed; and 

or fee is imposed; (B) shall determine the extent to which 

(B) the disclosure requirements of paragraph the individual definitions and provisions of this 

(3) have been met; subchapter or Regulation E should apply to 

(C) not more than one fee may be charged general-use prepaid cards, gift certificates, and 

in any given month; and store gift cards. 

(D) any additional requirements that the Bu­ (2) Consultation reau may establish through rulemaking under subsection (d) have been met. In prescribing regulations under this subsection, the Bureau shall consult with the Federal (3) Disclosure requirements Trade Commission. 

The disclosure requirements of this paragraph (3) Timing; effective date are met if-

(A) the gift certificate, store gift card, or The regulations required by this subsection 

general-use prepaid card clearly and conspicu­ shall be issued in final form not later than 9 

ously states- months after May 22, 2009. 

(i) that a dormancy fee, inactivity charge (Pub. L. 90-321, title IX, § 915, as added Pub. L. or fee, or service fee may be charged; 111-24, title IV, § 401(2), May 22, 2009, 123 Stat. 

(ii) the amount of such fee or charge; 1751; amended Pub. L. 111-203, title X, § 1084(1), 

(iii) how often such fee or charge may be July 21, 2010, 124 Stat. 2081.) assessed; and 

(iv) that such fee or charge may be assessed for inactivity; and 2 So in original. The word "shall" probably should not appear. 
Page 199 TITLE 15-COMMERCE AND TRADE § 1693m 

PRIOR PROVISIONS of this title, is liable to such consumer in an 

A prior section 915 of Pub. L. 90-321 was renumbered amount equal to the sum ofsection 916 and is classified to section 1693m of this title. (1) any actual damage sustained by such consumer as a result of such failure; AMENDMENTS (2)(A) in the case of an individual action, an 

2010---Pub. L. 111-203 substituted "Bureau" for "Board" amount not less than $100 nor greater than $1,000; 

wherever appearing. or 

(B) in the case of a class action, such amount EFFECTIVE DATE OF 2010 AMENDMENT as the court may allow, except that (i) as to 

Amendment by Pub. L. 111-203 effective on the desig­ each member of the class no minimum recovery nated transfer date, see section 1100H of Pub. L. 111-203, shall be applicable, and (ii) the total recovery set out as a note under section 552a of Title 5, Govern­ under this subparagraph in any class action or ment Organization and Employees. series of class actions arising out of the same 

EFFECTIVE DATE failure to comply by the same person shall not 

be more than the lesser of $500,000 or 1 per cen­ Pub. L. 111-24, title IV, §403, as added by Pub. L. 111-209, 

§ 1, July 27, 2010, 124 Stat. 2254, provided that: tum of the net worth of the defendant; and 

"(a) IN GENERAL.-Except as provided under subsec­ (3) in the case of any successful action to ention (b) of this section, this title [ enacting this section force the foregoing liability, the costs of the acand amending sections 1693m to 1693r of this title and tion, together with a reasonable attorney's fee 

provisions set out as a note under section 1693 of this as determined by the court. 

title] and the amendments made by this title shall become effective 15 months after the date of enactment of (b) Factors determining amount of award 

this Act [May 22, 2009]. · In determining the amount of liability in any "(b) EXCEPTION.- action under "(l) subsection IN GENERAL.-ln (a), the court the shall case con­ of a gift certificate, 

store gift card, or general-use prepaid card that was sider, among other relevant factorsproduced prior to April 1, 2010, the effective date of the (1) in any individual action under subsection 

disclosure requirements described in sections 915(b)(3) (a)(2)(A), the frequency and persistence of non­ and (c)(2)(B) of the Electronic Funds [probably should compliance, the nature of such noncompliance, be "Fund"] Transfer Act [15 U.S.C. 16931-l(b)(3), (c)(2)(B)] and the extent to which the noncompliance was shall be January 31, 2011, provided that an issuer of intentional; or such a certificate or card shall- (2) in any class action under subsection (a)(2)(B), "(A) comply with paragraphs (1) and (2) of section 

915(b) of such Act the [15 frequency U.S.C. and 16931-l(b)(l), (2)]; persistence of noncompliance, 

"(B) consider any such certificate or card for which the nature of such noncompliance, the resources 

funds expire to have no expiration date with respect of the defendant, the number of persons adverseto the underlying funds; ly affected, and the extent to which the non­ "(C) at a consumer's request, replace such certifi­ compliance was intentional. cate or card that has funds remaining at no cost to 

the consumer; and (c) Unintentional violations; bona fide error "(D) comply with the disclosure requirements of Except as provided in section 1693h of this title, paragraph (2) of this subsection. a person may not be held liable in any action "(2) DISCLOSURE REQUIREMENTS.-The disclosure requirements of this subsection are met by providing no­ brought under this section for a violation of this 

tice to consumers, via in-store signage, messages dur­ subchapter if the person shows by a prepondering customer service calls, Web sites, and general ad­ ance of evidence that the violation was not intenvertising, that- tional and resulted from a bona fide error not­

"(A) any such certificate or card for which funds withstanding the maintenance of procedures rea­ expire shall be deemed to have no expiration date sonably adapted to avoid any such error. with respect to the underlying funds; 

"(B) consumers holding such certificate or card shall (d) Good faith compliance with rule, regulation, have a right to a free replacement certificate or card or interpretation that includes the packaging and materials, typically 1 associated with such a certificate or card; and No provision of this section or section 1693n of 

"(C) any dormancy fee, inactivity fee, or service this title imposing any liability shall apply to---

fee for such certificates or cards that might other­ (1) any act done or omitted in good faith in 

wise be charged shall not be charged if such fees do conformity with any rule, regulation, or inter­ not comply with section 915 of the Electronic Funds pretation thereof by the Bureau or the Board or [probably should be "Fund"] Transfer Act [15 U.S.C. in conformity with any interpretation or approv­ 16931-1]. al by an official or employee of the Bureau of "(3) PERIOD FOR DISCLOSURE REQUIREMENTS.-The 

notice requirements in paragraph (2) of this subsection Consumer Financial Protection or the Federal 

shall continue until January 31, 2013." Reserve System duly authorized by the Bureau 

Pub. L. 111-24, title IV, § 403, May 22, 2009, 123 Stat. or the Board to issue such interpretations or 

1754, which provided that title IV of Pub. L. 111-24 was approvals under such procedures as the Bureau to become effective 15 months after May 22, 2009, was re­ or the Board may prescribe therefor; or pealed by Pub. L. 111-209, § 1, July 27, 2010, 124 Stat. 2254. (2) any failure to make disclosure in proper 

form if a financial institution utilized an ap­ § 1693m. Civil liability propriate model clause issued by the Bureau or (a) Individual or class action for damages; the Board, 

amount of award notwithstanding that after such act, omission, or Except as otherwise provided by this section failure has occurred, such rule, regulation, approv­ and section 1693h of this title, any person who al, or model clause is amended, rescinded, or de- fails to comply with any provision of this subchapter with respect to any consumer, except for 

an error resolved in accordance with section 1693f 1 See References In Text note below. 

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§ 1693n TITLE 15-COMMERCE AND TRADE Page 200 

termined by judicial or other authority to be in­ § 1693n. Criminal liability 

valid for any reason. (a) Violations respecting giving of false or inaccurate information, failure to provide infor­ (e) Notification to consumer prior to action; ad­ mation, and failure to comply with provi­ justment of consumer's account sions of this subchapter A person has no liability under this section for Whoever knowingly and willfully- any failure to comply with any requirement un­ (1) gives false or inaccurate information or der this subchapter if, prior to the institution of fails to provide information which he is required an action under this section, the person notifies 

to disclose by this subchapter or any regulation the consumer concerned of the failure, complies issued thereunder; or with the requirements of this subchapter, and makes (2) otherwise fails to comply with any provi- an appropriate adjustment to the consumer's ac­ sion of this subchapter; count and pays actual damages or, where applicable, damages in accordance with section 1693h of shall be fined not more than $5,000 or imprisoned 

this title. not more than one year, or both. 

(b) Violations affecting interstate or foreign com­ (f) Action in bad faith or for harassment; attor­ merce ney's fees Whoever- On a finding by the court that an unsuccessful (!) knowingly, in a transaction affecting inter­ action under this section was brought in bad faith state or foreign conunerce, uses or attempts or or for purposes of harassment, the court shall conspires to use any counterfeit, fictitious, al­ award to the defendant attorney's fees reasonable tered, forged, lost, stolen, or fraudulently ob­ in relation to the work expended and costs. tained debit instrument to obtain money, goods, 

services, or anything else of value which within (g) Jurisdiction of courts; time for maintenance any one-year period has a value aggregating of action $1,000 or more; or Without regard to the amount in controversy, (2) with unlawful or fraudulent intent, transany action under this section may be brought ports or attempts or conspires to transport in 

in any United States district court, or in any interstate or foreign commerce a counterfeit, other court of competent jurisdiction, within fictitious, altered, forged, lost, stolen, or fraud­ one year from the date of the occurrence of the ulently obtained debit instrument knowing the 

violation. same to be counterfeit, fictitious, altered, forged, 

(Pub. L. 90--321, title IX, §916, formerly §915, as lost, stolen, or fraudulently obtained; or 

added Pub. L. 95-630, title XX, § 2001, Nov. 10, 1978, (3) with unlawful or fraudulent intent, uses 

92 Stat. 3737; renumbered § 916, Pub. L. 111-24, title any instrumentality of interstate or foreign comIV, § 401(1), May 22, 2009, 123 Stat. 1751; amended merce to sell or transport a counterfeit, fictiPub. L. 111-203, title X, § 1084(1), (4), July 21, 2010, tious, altered, forged, lost, stolen, or fraudulent124 Stat. 2081, 2082.) ly obtained debit instrument knowing the same 

to be counterfeit, fictitious, altered, forged, lost, REFERENCES IN TEXT stolen, or fraudulently obtained; or 

Section 1693n of this title, referred to in subsec. (d), (4) knowingly receives, conceals, uses, or transwas in the original a reference to section 916 of Pub. L. ports money, goods, services, or anything else 

90-321, and was translated as meaning section 917 of Pub. of value (except tickets for interstate or foreign 

L. 90-321 to reflect the probable intent of Congress and transportation) which (A) within any one-year the renumbering of section 916 of Pub. L. 90-321 as sec­ period has a value aggregating $1,000 or more, tion 917 by Pub. L. 111-24, title IV, § 401(1), May 22, 2009, (B) has moved in or is part of, or which con­ 123 Stat. 1751. stitutes interstate or foreign commerce, and (C) 

PRIOR PROVISIONS has been obtained with a counterfeit, fictitious, 

altered, forged, lost, stolen, or fraudulently ob­ A prior section 916 of Pub. L. 90-321 was renumbered 

section 917 and is classified to section 1693n of this tained debit instrument; or 

title. (5) knowingly receives, conceals, uses, sells, 

or transports in interstate or foreign commerce AMENDMENTS one or more tickets for interstate or foreign trans2010-Pub. L. 111-203, § 1084(1), which directed the sub­ portation, which (A) within any one-year period 

stitution of "Bureau" for "Board" wherever appearing in have a value aggregating $500 or more, and (B) 

section, was not executed in subsec. (d), which was the have been purchased or obtained with one or only place such term appeared, to reflect the probable more counterfeit, fictitious, altered, forged, lost, intent of Congress and the amendment by Pub. L.111-203, stolen, or fraudulently obtained debit instrument; § 1084( 4). See below. or Subsec. (d). Pub. L. 111-203, §1084(4), struck out "of (6) in a transaction affecting interstate or for­ Board or approval of duly authorized official or employee 

of Federal Reserve System'' after "interpretation" in head­ eign commerce, furnishes money, property, serving that had been supplied editorially and inserted "Bu• ices, or anything else of value, which within 

reau of Consumer Financial Protection or the" before any one-year period has a value aggregating 

"Federal Reserve System" in par. (1) and "Bureau or $1,000 or more, through the use of any counterthe" before "Board" wherever appearing. feit, fictitious, altered, forged, lost, stolen, or 

fraudulently obtained debit instrument knowing EFFECTIVE DATE OF 2010 AMENDMENT the same to be counterfeit, fictitious, altered, Amendment by Pub. L. 111-203 effective on the desig­ forged, lost, stolen, or fraudulently obtainednated transfer date, see section 1100H of Pub. L. 111-203, 

set out as a note under section 552a of Title 5, Govern­ shall be fined not more than $10,000 or imprisoned 

ment Organization and Employees. not more than ten years, or both. 
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Page 201 TITLE lr-GOMMERCE AND TRADE § 1693o 

(c) "Debit instrument" defined (12 U.S.C. 1813(s)) shall have the meaning given to 

As used in this section, the term "debit instru­ them in section l(b) of the International Banking 

ment" means a card, code, or other device, other Act of 1978 (12 U.S.C. 3101). 

than a check, draft, or similar paper instrument, (b) Violations of subchapter deemed violations of by the use of which a person may initiate an elec­ pre-existing statutory requirements; addi­ tronic fund transfer. tional powers (Pub. L. 90-321, title IX, § 917, formerly § 916, as For the purpose of the exercise by any agency added Pub. L. 95---630, title XX, § 2001, Nov. 10, 1978, referred to in any of paragraphs (1) through (4) of 92 Stat. 3738; renumbered § 917, Pub. L. 111-24, title subsection (a) of its powers under any Act re­ IV, § 401(1), May 22, 2009, 123 Stat. 1751.) ferred to in that subsection, a violation of any requirement imposed under this subchapter shall be PRIOR PROVISIONS deemed to be a violation of a requirement imA prior section 917 of Pub. L. 90--321 was renumbered posed under that Act. In addition to its powers section 918 and is classified to section 16930 of this title. under any provision of law specifically referred 

to in any of paragraphs (1) through ( 4) of sub­

§ 1693o. Administrative enforcement section (a), each of the agencies referred to in 

(a) Enforcing agencies that subsection may exercise, for the purpose of 

Subject to subtitle B of the Consumer Financial enforcing compliance with any requirement imProtection Act of 2010 [12 U.S.C. 5511 et seq.], com­ posed under this subchapter, any other authority 

pliance with the requirements imposed under this conferred on it by law. 

subchapter shall be enforced under- (c) Overall enforcement authority of the Federal (!) section 8 of the Federal Deposit Insurance Trade Commission Act [12 U.S.C. 1818), by the appropriate Federal 

banking agency, as defined in section 3(q) of Except to the extent that enforcement of the 

the Federal Deposit Insurance Act (12 U.S.C. requirements imposed under this subchapter is 

1813(q)), with respect to- specifically committed to some other Government 

(A) national banks, Federal savings associa­ agency under any of paragraphs (1) through (4) of 

tions, and Federal branches and Federal agen­ subsection (a), and subject to subtitle B of the 

cies of foreign banks; Consumer Financial Protection Act of 2010, the 

(B) member banks of the Federal Reserve Federal Trade Commission shall be authorized to 

System (other than national banks), branches enforce such requirements. For the purpose of the 

and agencies of foreign banks ( other than Fed­ exercise by the Federal Trade Commission of its 

eral branches, Federal agencies, and insured functions and powers under the Federal Trade ComState branches of foreign banks), commercial mission Act [15 U.S.C. 41 et seq.], a violation of 

lending companies owned or controlled by for­ any requirement imposed under this subchapter 

eign banks, and organizations operating un­ shall be deemed a violation of a requirement imder section 25 or 25A of the Federal Reserve posed under that Act. All of the functions and 

Act [12 U.S.C. 601 et seq., 611 et seq.]; and powers of the Federal Trade Commission under 

(C) banks and State savings associations in­ the Federal Trade Commission Act are available 

sured by the Federal Deposit Insurance Cor­ to the Federal Trade Commission to enforce comporation (other than members of the Federal pliance by any person subject to the jurisdiction 

Reserve System), and insured State branches of the Federal Trade Commission with the requireof foreign banks; ments imposed under this subchapter, irrespective of whether that person is engaged in com­ (2) the Federal Credit Union Act [12 U.S.C. merce or meets any other jurisdictional tests un­ 1751 et seq.], by the Administrator of the Na­ der the Federal Trade Commission Act. tional Credit Union Administration with respect 

to any Federal credit union; (Pub. L. 90-321, title IX, § 918, formerly § 917, as 

(3) part A of subtitle VII of title 49, by the added Pub. L. 95---630, title XX, § 2001, Nov. 10, 1978, 

Secretary of Transportation, with respect to any 92 Stat. 3739; amended Pub. L. 101-73, title VII, 

air carrier or foreign air carrier subject to that §744(0), Aug. 9, 1989, 103 Stat. 440; Pub. L. 102-242, 

part; title II, § 212(f), Dec. 19, 1991, 105 Stat. 2301; Pub. 

( 4) the Securities Exchange Act of 1934 [15 L. 104-287, §6(h), Oct. 11, 1996, 110 Stat. 3399; reU.S.C. 78a et seq.), by the Securities and Ex­ numbered §918, Pub. L. 111-24, title IV, §401(1), 

change Commission, with respect to any broker May 22, 2009, 123 Stat. 1751; Pub. L. 111~203, title 

or dealer subject to that Act and 1 X, § 1084(5), July 21, 2010, 124 Stat. 2082.) 

(5) subtitle E of the Consumer Financial Pro­ REFERENCES IN TEXT tection Act of 2010 [12 U.S.C. 5561 et seq.), by the 

Bureau, with respect to any person subject to The Consumer Financial Protection Act of 2010, rethis subchapter, except that the Bureau shall · ferred to in subsecs. (a) and (c), is title X of Pub. L. 

111-203, July 21, 2010, 124 Stat. 1955. Subtitles B (§§1021-1029A) not have authority to enforce the requirements and E (§§ 1051-1058) of the Act are classified generally to of section 16930-2 of this title or any regula­ parts B (§ 5511 et seq.) and E (§ 5561 et seq.), respectively, tions prescribed by the Board under section 16930-2 of subchapter V of chapter 53 of Title 12, Banks and 

of this title. Banking. For complete classification of subtitles B and E 

to the Code, see Tables. The terms used in paragraph (1) that are not de­ Sections 25 and 25A of the Federal Reserve Act, re­ fined in this subchapter or otherwise defined in ferred to in subsec. (a)(l)(B), are classified to subchap­ section 3(s) of the Federal Deposit Insurance Act ters I (§ 601 et seq.) and II (§ 611 et seq.), respectively, of 

chapter 6 of Title 12, Banks and Banking. 

The Federal Credit Union Act, referred to in subsec. 1 So in original. Prob.:bly should be "; and"·. (a)(2), is act June 26, 1934, ch. 750, 48 Stat. 1216, which is 
§ 16930-l TITLE 15--COMMERCE AND TRADE Page 202 

classified generally to chapter 14 (§ 1751 et seq.) of Title respective of whether that person is engaged in com­ 12. For complete classification of this Act to the Code, merce or meets any other jurisdictional tests in the Fed­ see section 1751 of Title 12 and Tables. eral Trade Commission Act.'' 

The Securities Exchange Act of 1934, referred to in 1996--Subsec. (a)(4). Pub. L. 104-287 substituted "Secsubsec. (a)(4), is act June 6, 1934, ch. 404, 48 Stat. 881, retary of Transportation" for "Civil Aeronautics Board". 

which is classified principally to chapter 2B (§ 78a et 1991-Subsec. (a). Pub. L. 102-242, § 212(0(2), inserted at 

seq.) of this title. For complete classification of this Act end "The terms used in paragraph (1) that are not deto the Code, see section 78a of this title and Tables. fined in this subchapter or otherwise defined in section 

The Federal Trade Commission Act, referred to in sub­ 3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) sec. (c), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, which is shall have the meaning given to them in section l(b) of 

classified generally to subchapter I (§ 41 et seq.) of chap­ the International Banking Act of 1978 (12 U.S.C. 3101)." 

ter 2 of this title. For complete classification of this Act Pub. L. 102-242, § 212(f)(l), added par. (1) and struck out 

to the Code, see section 58 of this title and Tables. former par. (1) which read as follows: "section 8 of the 

Federal Deposit Insurance Act, in the case of- CODIFICATION "(A) national banks, by the Comptroller of the CurIn subsec. (a)(3), "part A of subtitle VII of title 49" rency; 

substituted for "the Federal Aviation Act of 1958 [49 App. "(B) member banks of the Federal Reserve System 

U.S.C. 1301 et seq.]" and "that part" substituted for "that (other than national banks), by the Board; 

Act" on authority of Pub. L. 103-272, § 6(b), July 5, 1994, "(C) banks insured by the Federal Deposit Insurance 

108 Stat. 1378, the first section of which enacted subtitles Corporation (other than members of the Federal ReII, III, and V to X of Title 49, Transportation. serve System), by the Board of Directors of the Federal Deposit Insurance Corporation;". PRIOR PROVISIONS 1989-Subsec. (a)(2). Pub. L. 101-73 amended par. (2) 

generally. Prior to amendment, par. (2) read as follows: A prior section 918 of Pub. L. 90-321 was renumbered "section 5(d) of the Home Owners' Loan Act of 1933, sec­ section 921 and is classified to section 1693p of this title. tion 407 of the National Housing Act, and sections 6(i) 

AMENDMENTS and 17 of the Federal Home Loan Bank Act, by the Federal Home Loan Bank Board (acting directly or through 2010----Subsec. (a). Pub. L. 111-203, § 1084(5)(A)(i), substi­ the Federal Savings and Loan Insurance Corporation), in 

tuted "Subject to subtitle B of the Consumer Financial the case of any institution subject to any of those provi­ Protection Act of 2010, compliance" for "Compliance" in sions;''. introductory provisions. 

Subsec. (a)(l). Pub. L. 111-203, § 2010 1084(5)(A)(ii), added par. EFFECTIVE DATE OF AMENDMENT 

(1) and struck out former par. (1) which read as follows: Amendment by Pub. L. 111-203 effective on the desig­ "section 8 of the Federal Deposit Insurance Act, in the nated transfer date, see section 1100H of Pub. L. 111-203, case of- set out as a note under section 552a of Title 5, Govern­

"(A) national banks, and Federal branches and Fed­ ment Organization and Employees. eral agencies of foreign banks, by the Office of the 

Comptroller of the Currency; TRANSFER OF FUNCTIONS 

\'(B) member banks of the Federal Reserve System Functions vested in AdministratOl' of National Credit 

(other than national banks), branches and agencies of Union Administration transferred and vested in National 

foreign banks (other than Federal branches, Federal Credit Union Administration Board pursuant to section 

agencies, and insured State branches of foreign banks), 1752a of Title 12, Banks and Banking. commercial lending companies owned or controlled by 

foreign banks, and organizations operating under sec­ § 16930-l. Remittance transfers 

tion 25 or 25(a) of the Federal Reserve Act, by the (a) Disclosures required for remittance transfers Board; and (1) In general "(C) banks insured by the Federal Deposit Insurance 

Corporation (other than members of the Federal Re­ Each remittance transfer provider shall make serve System) and insured State branches of disclosures as required under this section and 

banks, by the Board of Directors of the Federal in accordance with rules prescribed by the Bu­ posit Insurance Corporation;". reau. Disclosures required under this section shall Subsec. (a)(2) to (5). Pub. L. 111-203, § 1084(5)(A)(ii)-(vii), be in addition to any other disclosures applica­ added par. (5), redesignated former pars. (3) to (5) as (2) 

to (4), respectively, and struck out former par. (2) which ble under this subchapter. 

read as follows: "section 8 of the Federal Deposit Insur­ (2) Disclosures ance Act, by the Director of the Office of Thrift Super­ Subject to rules prescribed by the Bureau, a vision, in the case of a savings association the deposits 

of which are insured by the Federal Deposit Insurance remittance transfer provider shall provide, in 

Corporation;''. writing and in a form that the sender may keep, 

Subsec. (b). Pub. L. 111-203, § 1084(5)(B), inserted "any to each sender requesting a remittance transof paragraphs (1) through (4) of" before "subsection (a)" fer, as applicable to the transactionin two places. (A) at the time at which the sender requests Subsec. (c). Pub. L. 111-203, § 1084(5)(0), added subsec. a remittance transfer to be initiated, and pri­ (c) and struck out former subsec. (c). Prior to amend­ or to the sender making any payment in con­ ment, text read as follows: "Except to the extent that nection with the remittance transfer, a dis­ enforcement of the requirements imposed under this subchapter is specifically committed to some other Govern­ closure describingment agency under subsection (a) of this section, the (i) the amount of currency that will be reFederal Trade Commission shall enforce such require­ ceived by the designated recipient, using the 

ments. For the purpose of the exercise by the Federal values of the currency into which the funds 

Trade Commission of its functions and powers under the will be exchanged; Federal Trade Commission Act, a violation of any re­ (ii) the amount of transfer and any other 

quirement imposed under this subchapter shall be deemed fees charged by the remittance transfer pro­ a violation of a requirement imposed under that Act. All vider for the remittance transfer; and of the functions and powers of the Federal Trade Commission (iii) any exchange rate to be used by the under the Federal Trade Commission Act are 

available to the Commission to enforce compliance by remittance transfer provider for the remitany person subject to the jurisdiction of the Commission tance transfer, to the nearest 11100th of a with the requirements imposed under this subchapter, ir- point; and 

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Page 203 TITLE 15--COMMERCE AND TRADE § 16930-l 

(B) at the time at which the sender makes such provision would negatively affect the abilpayment in connection with the remittance ity of remittance transfer providers described 

transfer- in subparagraph (A) to send remittances to 

(i) a receipt showing- locations in foreign countries, in which case, 

(!) the information described in subpara­ the Bureau may, by rule, extend the applicagraph (A); tion of subparagraph (A) to not longer than 10 

(II) the promised date of delivery to the years after July 21, 2010. 

designated recipient; and 

(III) the name and either the telephone (5) Exemption authority number or the address of the designated The Bureau may, by rule, permit a remittance recipient, if either the telephone number transfer provider to satisfy the requirements or the address of the designated recipient of- is provided by the sender; and (A) paragraph (2)(A) orally, if the transac­

(ii) a statement containing- tion is conducted entirely by telephone; 

(!) information about the rights of the (B) paragraph (2)(B), in the case of a transsender under this section regarding the action conducted entirely by telephone, by mailresolution of errors; and ing the disclosures required under such sub­

(II) appropriate contact information for­ paragraph to the sender, not later than 1 busi­

(aa) the remittance transfer provider; ness day after the date on which the transand action is conducted, or by including such doc­

(bb) the State agency that regulates uments in the next periodic statement, if the 

the remittance transfer provider and the telephone transaction is conducted through a Bureau, including the toll-free telephone demand deposit, savings deposit, or other as­ number established under section 5493 set account that the sender holds with the re­ of title 12. mittance transfer provider; 

(C) subparagraphs (A) and (B) of paragraph (3) Requirements relating to disclosures (2) together in one written disclosure, but only With respect to each disclosure required to be to the extent that the information provided provided under paragraph (2) a remittance trans­ in accordance with paragraph (3)(A) is accu­ fer provider shall- rate at the time at which payment is made in 

(A) provide an initial notice and receipt, as connection with the subject remittance trans­ required by subparagraphs (A) and (B) of para­ fer; and graph (2), and an error resolution statement, (D) paragraph (2)(A), without compliance with as required by- subsection (d), that clearly and section lOl(c) of the Electronic Signatures in conspicuously describe the information required Global Commerce Act [15 U.S.C. 7001(c)], if a to be disclosed therein; and sender initiates the transaction electronical­ (B) with respect to any transaction that a ly and the information is displayed electroni­ sender conducts electronically, comply with the cally in a manner that the sender can keep. Electronic Signatures in Global and National 

Commerce Act (15 U.S.C. 7001 et seq.). (6) Storefront and Internet notices 

(4) Exception for disclosures of amount received (A) In general 

(A) In general (i) Prominent posting 

Subject to the rules prescribed by the Bu­ Subject to subparagraph (B), the Bureau 

reau, and except as provided under subpara­ may prescribe rules to require a remittance graph (B), the disclosures required regarding transfer provider to prominently post, and the amount of currency that will be received timely update, a notice describing a model by the designated recipient shall be deemed remittance transfer for one or more amounts, to be accurate, so long as the disclosures pro­ as the Bureau may determine, which notice vide a reasonably accurate estimate of the shall show the amount of currency that will foreign currency to be received. This para­ be received by the designated recipient, us­ graph shall apply only to a remittance trans­ ing the values of the currency into which fer provider who is an insured depository in­ the funds will be exchanged. stitution, as defined in section 1813 of title 12, Onsite displays or an insured credit union, as defined in sec­ (ii) 

tion 1752 of title 12, and if- The Bureau may require the notice pre­

(i) a remittance transfer is conducted scribed under this subparagraph to be disthrough a demand deposit, savings deposit, played in every physical storefront location 

or other asset account that the sender holds owned or controlled by the remittance transwith such remittance transfer provider; and fer provider. 

(ii) at the time at which the sender re­ (iii) Internet notices 

quests the transaction, the remittance trans­ Subject to paragraph (3), the Bureau shall fer provider is unable to know, for reasons prescribe rules to require a remittance trans­ beyond its control, the amount of currency fer provider that provides remittance trans­ that will be made available to the designat­ fers via the Internet to provide a notice, ed recipient. comparable to a storefront notice described 

(B) Deadline in this subparagraph, located on the home 

The application of subparagraph (A) shall page or landing page (with respect to such 

terminate 5 years after July 21, 2010, unless remittance transfer services) owned or conthe Bureau determines that termination of trolled by the remittance transfer provider. 
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§ 1693o-l TITLE 15--COMMERCE AND TRADE Page 204 

(iv) Rulemaking authority subparagraph (A), the remittance transfer proIn prescribing rules under this vider subpara­ shall, as applicable to the error and as 

graph, the Bureau may impose standards or designated by the senderrequirements regarding the provision of the (i) refund to the sender the total amount 

storefront and Internet notices required of funds un­ tendered by the sender in connecder this subparagraph and the provision tion with of the remittance transfer which was 

the disclosures not properly required under transmitted: paragraphs 

(2) and (3). (ii) make available to the designated recipient, without additional cost to the des­ (B) Study and analysis ignated recipient or to the sender, the amount 

Prior to proposing rules under subparagraph appropriate to resolve the error; 

(A), the Bureau shall undertake appropriate (iii) provide such other remedy, as deterstudies and analyses, which shall be consist­ mined appropriate by rule of the Bureau for 

ent with section 1693b(a)(2) of this title, and the protection of senders; or may include an advanced notice of proposed (iv) provide written notice to the sender 

rulemaking, to determine whether a storefront that there was no error with an explanation notice or Internet notice facilitates the abil­ responding to the specific complaint of the 

ity of a consumer- sender. 

(i) to compare prices for remittance trans­ (2) Rules fers; and 

(ii) to understand the types and amounts The Bureau shall establish, by rule issued not 

of any fees or costs imposed on remittance later than 18 months after July 21, 2010, clear 

transfers. and appropriate standards for remittance transfer providers with respect to error resolution (b) Foreign language disclosures relating to remittance transfers, to protect sendThe disclosures required under this section shall ers from such errors. Standards prescribed un­ be made in English and in each of the foreign der this paragraph shall include appropriate standlanguages principally used by the remittance trans­ ards regarding record keeping, as required, infer provider, or any of its agents, to advertise, so­ cluding documentationlicit, or market, either orally or in writing, at (A) of the complaint of the sender; that office. (B) that the sender provides the remittance 

(c) Regulations regarding transfers to certain na­ transfer provider with respect to the alleged 

tions error; and 

(C) of the findings of the remittance trans­ If the Bureau determines that a recipient na­ fer provider regarding the investigation of the tion does not legally allow, or the method by which alleged error that the sender brought to their transactions are made in the recipient country do attention. not allow, a remittance transfer provider to know 

the amount of currency that will be received by (3) Cancellation and refund policy rules 

the designated recipient, the Bureau may prescribe Not later than 18 months after July 21, 2010, rules (not later than 18 months after July 21, 2010) the Bureau shall issue final rules regarding ap­ addressing the issue, which rules shall include stand­ propriate remittance transfer cancellation and ards for a remittance transfer provider to provide- refund policies for consumers. (1) a receipt that is consistent with subsections (a) and (b); and (e) Applicability of this subchapter (2) a reasonably accurate estimate of the for­ (I) In general eign currency to be received, based on the rate 

provided to the sender by the remittance trans­ A remittance transfer that is not an electronfer provider at the time at which the transac­ ic fund transfer, as defined in section 1693a of 

tion was initiated by the sender. this title, shall not be subject to any of the provisions of sections 1693c through 1693k of this (d) Remittance transfer errors title. A remittance transfer that is an electron­

(1) Error resolution ic fund transfer, as defined in section 1693a of 

(A) In general this title, shall be subject to all provisions of 

this subchapter, except for section 1693f of this If a remittance transfer provider receives title, that are otherwise applicable to electronic oral or written notice from the sender within fund transfers under this subchapter. 180 days of the promised date of delivery that 

an error occurred with respect to a remit­ (2) Rule of construction 

tance transfer, including the amount of cur­ Nothing in this section shall be construedrency designated in subsection (a)(3)(A) that (A) to affect the application to any trans­ was to be sent to the designated recipient of action, to any remittance provider, or to any the remittance transfer, using the values of other person of any of the provisions of sub­ the currency into which the funds should have chapter II of chapter 53 of title 31, section been exchanged, but was not made available 1829b of title 12, or chapter 2 of title I of Pub­ to the designated recipient in the foreign coun­ lic Law 91-508 (12 U.S.C. 1951-1959), or any reg­ try, the remittance transfer provider shall re­ ulations promulgated thereunder; or solve the error pursuant to this subsection (B) to cause any fund transfer that would and investigate the reason for the error. not otherwise be treated as such under para­ (B) Remedies graph (1) to be treated as an electronic fund 

Not later than 90 days after the date of re­ transfer, or as otherwise subject to this subceipt of a notice from the sender pursuant to chapter, for the purposes of any of the provi-
Case 2:22-cv-04260 Document 2-2 Filed 07/20/22 Page 19 of 24 PageID #: 226 

Page 205 TITLE 15--COMMERCE AND TRADE § 1693o-2 

sions referred to in subparagraph (A) or any REFERENCES IN TEXT 

regulations promulgated thereunder. The Electronic Signatures in Global and National Com­ merce Act, referred to in subsec. (a)(3)(B), is Pub. L. 

(t) Acts of agents 106-229, June 30, 2000, 114 Stat. 464, which is classified 

principally to chapter 96 (§ 7001 et seq.) of this title. For 

(1) In general complete classification of this Act to the Code, see Short 

A remittance transfer provider shall be liable Title note set out under section 7001 of this title and 

for any violation of this section by any agent, Tables. 

Chapter 2 of title I of Public Law 91-508, referred to in authorized delegate, or person affiliated with such subsec. (e)(2)(A), is chapter 2 (§§ 121-129) of title I of Pub. provider, when such agent, authorized delegate, L. 91-508, Oct. 26, 1970, 84 Stat. 1116, which is classified or affiliate acts for that remittance transfer pro­ generally to chapter 21 (§ 1951 et seq.) of Title 12, Banks 

vider. and Banking. For complete classification of chapter 2 of 

title I of the Act to the Code, see Tables. 

(2) Obligations of remittance transfer providers 

The Bureau shall prescribe rules to implement PRIOR PROVISIONS 

appropriate standards or conditions of, liability A prior section 919 of Pub. L. 90----321 was renumbered 

of a remittance transfer provider, including a section 921 and is classified to section 1693p of this title. 

provider who acts through an agent or author­ Another prior section 919 of Pub. L. 90-321 was renumbered section 922 and is classified to section 1693q of this ized delegate. An agency charged with enforcing title. the requirements of this section, or rules prescribed by the Bureau under this section, may AMENDMENTS 

consider, in any action or other proceeding against 2010--Pub. L. 111-203, § 1084(1), substituted "Bureau" a remittance transfer provider, the extent to for "Board" wherever appearing. which the provider had established and maintained policies or procedures for compliance, in­ EFFECTIVE DATE OF 2010 AMENDMENT 

cluding policies, procedures, or other appropri­ Amendment by section 1084(1) of Pub. L. 111-203 effecate oversight measures designed to assure com­ tive on the designated transfer date, see section 1100H of 

pliance by an agent or authorized delegate act­ Pub. L. 111-203, set out as a note under section 552a of 

ing for such provider. Title 5, Government Organization and Employees. 

EFFECTIVE DATE (g) Definitions 

Section effective 1 day after July 21, 2010, except as As used in this section- otherwise provided, see section 4 of Pub. L. 111-203, set (1) the term "designated recipient" means any out as a note under section 5301 of Title 12, Banks and 

person located in a foreign country and identi­ Banking. fied by the sender as the authorized recipient of a remittance transfer to be made by a remit­ § 1693o-2. Reasonable fees and rules for payment 

tance transfer provider, except that a designat­ card transactions 

ed recipient shall not be deemed to be a con­ (a) Reasonable interchange transaction fees for sumer for purposes of this chapter; electronic debit transactions (2) the term "remittance transfer"-

(A) means the electronic (as defined in sec­ (1) Regulatory authority over interchange transtion 106(2) of the Electronic Signatures in Glob­ action fees 

al and National Commerce Act (15 U.S.C. 7006(2))) The Board prescribe regulations, pursu- transfer of funds requested by a sender locat­ ant to section of title 5, regarding any intered in any State to a designated recipient that change transaction fee that an issuer may re­ is initiated by a remittance transfer provider, ceive or charge with respect to an electronic 

whether or not the sender holds an account debit transaction, to implement this subsection 

with the remittance transfer provider or wheth­ (including related definitions), and to prevent er or not the remittance transfer is also an circumvention or evasion of this subsection. 

electronic fund transfer, as defined in section 

(2) Reasonable interchange transaction fees 1693a of this title; and 

(B) does not include a transfer described in The amount of any interchange transaction 

subparagraph (A) in an amount that is equal fee that an issuer may receive or charge with re­ to or lesser than the amount of a small-value spect to an electronic debit transaction shall be 

transaction determined, by rule, to be excluded reasonable and proportional to the cost incurred 

from the requirements under section 1693d(a) by the issuer with respect to the transaction. 

of this title; (3) Rulemaking required 

(3) the term "remittance transfer provider" (A) In general means any person or financial institution that 

provides remittance transfers for a consumer in The Board shall prescribe regulations in fithe normal course of its business, whether or nal form not later than 9 months after July 

not the consumer holds an account with such 21, 2010, to establish standards for assessing 

whether the amount of any interchange trans­ person or financial institution; and 

action fee described in paragraph (2) is rea­ (4) the term "sender" means a consumer who 

requests a remittance provider to send a remit­ sonable and proportional to the cost incurred 

by the issuer with respect to the transaction. tance transfer for the consumer to a designated 

recipient. (B) Information collection 

(Pub. L. 90-321, title IX, § 919, as added and amend­ The Board may require any issuer ( or agent 

ed Pub. L. 111-203, title X, §§ 1073(a)( 4), 1084(1), of an issuer) or payment card network to proJuly 21, 2010, 124 Stat. 2060, 2081.) vide the Board with such information as may 
Case 2:22-cv-04260 Document 2-2 Filed 07/20/22 Page 20 of 24 PageID #: 227 

§ 16930-2 TITLE 15-COMMERCE AND TRADE Page 206 

be necessary to carry out the provisions of (B) Rulemaking required 

this subsection and the Board, in issuing rules (i) In general under subparagraph (A) and on at least a biannual basis thereafter, shall disclose such The Board shall prescribe regulations in 

aggregate or summary information concern­ final form not later than 9 months after July 

ing the costs incurred, and interchange trans­ 21, 2010, to establish standards for making 

adjustments under this paragraph. action fees charged or received, by issuers or 

payment card networks in connection with the (ii) Factors for consideration 

authorization, clearance or settlement of elec­ In issuing the standards and prescribing tronic debit transactions as the Board consid­ regulations under this paragraph, the Board ers appropriate and in the public interest. shall consider-

(4) Considerations; consultation (!) the nature, type, and occurrence of 

fraud in electronic debit transactions; In prescribing regulations under paragraph (II) the extent to which the occurrence (3)(A), the Board shall- of fraud depends on whether authorization (A) consider the functional similarity in an electronic debit transaction is based between- on signature, PIN, or other means; (i) electronic debit transactions; and (III) the available and economical means (ii) checking transactions that are required by which fraud on electronic debit trans­ within the Federal Reserve bank system to actions may be reduced; clear at par; (IV) the fraud prevention and data secu­

(B) distinguish between- rity costs expended by each party involved 

(i) the incremental cost incurred by an is­ in electronic debit transactions (including 

suer for the role of the issuer in the author­ consumers, persons who accept debit cards 

ization, clearance, or settlement of a par­ as a form of payment, financial ins tituticular electronic debit transaction, which tions. retailers and payment card networks); 

cost shall be considered under paragraph (V) the costs of fraudulent transactions 

(2); and absorbed by each party involved in such 

(ii) other costs incurred by an issuer which transactions (including consumers, persons 

are not specific to a particular electronic who accept debit cards as a form of paydebit transaction, which costs shall not be ment, financial institutions, retailers and 

considered under paragraph (2); and payment card networks); 

(V1) the extent to which interchange (C) consult, as appropriate, with the Comp­ transaction fees have in the past reduced troller of the Currency, the Board of Direc­ or increased incentives for parties involved tors of the Federal Deposit Insurance Corpo­ in electronic debit transactions to reduce ration, the Director of the Office of Thrift fraud on such transactions; and Supervision, the National Credit Union Admin­ (V1I) such other factors as the Board istration Board, the Administrator of the Small considers appropriate. Business Administration, and the Director of 

the Bureau of Consumer Financial Protection. (6) Exemption for small issuers 

(5) Adjustments to interchange transaction fees (A) In general 

for fraud prevention costs This subsection shall not apply to any is­

(A) Adjustments suer that, together with its affiliates, has asThe Board may allow for an adjustment to sets of less than $10,000,000,000, and the Board 

the fee amount received or charged by an is­ shall exempt such issuers from regulations presuer under paragraph (2), if- scribed under paragraph (3)(A). 

(i) such adjustment is reasonably neces­ (B) Definition 

sary to make allowance for costs incurred For purposes of this paragraph, the term by the issuer in preventing fraud in relation "issuer" shall be limited to the person holdto electronic debit transactions involving that ing the asset account that is debited through issuer; and an electronic debit transaction. 

(ii) the issuer complies with the fraud-related standards established by the Board un­ (7) Exemption for government-administered pay­ der subparagraph (B), which ·standards shall- ment programs and reloadable prepaid cards (!) be designed to ensure that any fraud­

(A) In general related adjustment of the issuer is limited to the amount described in clause (i) This subsection shall not apply to an interand takes into account any fraud-related change transaction fee charged or received with 

reimbursements (including amounts from respect to an electronic debit transaction in 

charge-backs) received from consumers, mer­ which a person uses- chants, or payment card networks in rela­ (i) a debit card or general-use prepaid card 

tion to electronic debit transactions involv­ that has been provided to a person pursuant 

ing the issuer; and to a Federal, State or local government-ad­

(II) require issuers to take effective steps ministered payment program, in which the 

to reduce the occurrence of, and costs from, person may only use the debit card or genfraud in relation to electronic debit trans­ eral-use prepaid card to transfer or debit 

actions, including through the development funds, monetary value, or other assets that 

and implementation of cost-effective fraud have been provided pursuant to such proprevention technology. gram; or 
Case 2:22-cv-04260 Document 2-2 Filed 07/20/22 Page 21 of 24 PageID #: 228 

Page 207 TITLE 15-COMMERCE AND TRADE § 16930-2 

(ii) a plastic card, payment code, or de­ (B) Limitation 

vice that is- The authority under subparagraph (A) to pre­ (I) linked to funds, monetary value, or scribe regulations shall be limited to regulaassets which are purchased or loaded on a tions to ensure that--

prepaid basis; (i) a network fee is not used to directly or 

(II) not issued or approved for use to ac­ indirectly compensate an issuer with respect 

cess or debit any account held by or for to an electronic debit transaction; and 

of (ii) a network fee is not used to circum­ the benefit the card holder ( other than 

vent or evade the restrictions of this sub­ a subaccount or other method of record­ section and regulations prescribed under such ing or tracking funds purchased or loaded subsection. on the card on a prepaid basis); 

(III) redeemable at multiple, unaffiliated (C) Rulemaking required 

merchants or service providers, or auto­ The Board shall prescribe regulations in fimated teller machines; nal form before the end of the 9-month period 

(IV) used to transfer or debit funds, mon­ beginning on July 21, 2010, to carry out the 

etary value, or other assets; and authorities provided under subparagraph (A). 

(V) reloadable and not marketed or la­ (9) Effective date 

beled as a gift card or gift certificate. This subsection shall take effect at the end of 

(B) Exception the 12-month period beginning on July 21, 2010. 

Notwithstanding subparagraph (A), after the (b) Limitation on payment card network restricend of the I-year period beginning on the ef­ tions 

fective date provided in paragraph (9), this (1) Prohibitions against exclusivity arrangements 

subsection shall apply to an interchange trans­ (A) No exclusive network 

action fee charged or received with respect to The Board shall, before the end of the !-year an electronic debit transaction described in period beginning on July 21, 2010, prescribe subparagraph (A)(i) in which a person uses a regulations providing that an issuer or pay­ general-use prepaid card, or an electronic deb­ ment card network shall not directly or through it transaction described in subparagraph (A)(ii), any agent, processor, or licensed member of a if any of the following fees may be charged to payment card network, by contract, require­ a person with respect to the card: ment, condition, penalty, or otherwise, restrict 

(i) A fee for an overdraft, including a short­ the nmnber of payment card networks on which· 

age of funds or a transaction processed for an electronic debit transaction may be proc­ an amount exceeding the account· balance. essed to--

(ii) A fee imposed by the issuer for the (i) 1 such network; or 

first withdrawal per month from an auto­ (ii) 2 or more such networks which are 

mated teller machine that is part of the is­ owned, controlled, or otherwise operated by - or suer's designated automated teller machine (I) affiliated persons; 

(II) networks affiliated with such issuer. network. 

(B) No routing restrictions (C) Definition 

The Board shall, before the end of the I-year For purposes of subparagraph (B), the term period beginning on July 21, 2010, prescribe ''designated automated teller machine network'' regulations providing that an issuer or pay­ means either- ment card network shall not, directly or through (i) all automated teller machines identi­ any agent, processor, or licensed member of fied in the name of the issuer; or the network, by contract, requirement, condi­

(ii) any network of automated teller ma­ tion, penalty, or otherwise, inhibit the ability chines identified by the issuer that provides of any person who accepts debit cards for pay­ reasonable and convenient access to the is­ ments to direct the routing of electronic debit 

suer's customers. transactions for processing over any payment 

(D) Reporting card network that may process such transactions. Beginning 12 months after July 21, 2010, the (2) Limitation on restrictions on offering dis­ Board shall annually provide a report to the counts for use of a form of payment Congress regarding -

(i) the prevalence of the use of general­ (A) In general 

use prepaid cards in Federal, State or local A payment card network shall not, directly 

government-administered payment programs; or through any agent, processor, or licensed 

and member of the network, by contract, require­

(ii) the interchange transaction fees and ment, condition, penalty, or otherwise, inhibit 

cardholder fees charged with respect to the the ability of any person to provide a disuse of such general-use prepaid cards. count or in-kind incentive for payment by the use of cash, checks, debit cards, or credit cards 

(8) Regulatory authority over network fees to the extent that-

(i) in the case of a discount or in-kind in­ (A) In general centive for payment by the use of debit cards, The Board may prescribe regulations, pur­ the discount or in-kind incentive does not 

suant to section 553 of title 5, regarding any differentiate on the basis of the issuer or network fee. the payment card network; 
Case 2:22-cv-04260 Document 2-2 Filed 07/20/22 Page 22 of 24 PageID #: 229 

§ 1693o--2 TITLE 15-COMMERCE AND TRADE Page 208 

(ii) in the case of a discount or in-kind in­ count (regardless of the purpose for which the 

centive for payment by the use of credit cards, account is established), whether authorization 

the discount or in-kind incentive does not is based on signature, PIN, or other means; 

differentiate on the basis of the issuer or (B) includes a general-use prepaid card, as 

the payment card network; and that term is defined in section 1693l-l(a)(2)(A) 

(iii) to the extent required by Federal law of this title; and 

and applicable State law, such discount or (C) does not include paper checks. 

in-kind incentive is offered to all prospec­ (3) Credit card tive buyers and disclosed clearly and conspicuously. The term "credit card" has the same mean­

(B) Lawful ing as in section 1602 of this title. discounts 

For purposes of this paragraph, the network (4) Discount 

may not penalize any person for the providing The term "discount"- of a discount that is in compliance with Fed­ (A) means a reduction made from the price eral law and applicable State law. that customers are informed is the regular 

(3) Limitation on restrictions on setting trans­ price; and 

action minimums or maximums (B) does not include any means of increasing the price that customers are informed is (A) In general the regular price. A paynient card network shall not, directly 

or through any agent, processor, or licensed (5) Electronic debit transaction 

member of the network, by contract, require­ The term "electronic debit transaction" means ment, condition, penalty, or otherwise, inhibit a transaction in which a person uses a debit 

the ability- card. 

(i) of any person to set a minimum dollar 

value for the acceptance by that person of (6) Federal agency 

credit cards, to the extent that- The term "Federal agency" means- (!} such minimum dollar value does not (A) an agency (as defined in section 101 of differentiate between issuers or between title 31); and 

payment card networks; and (B) a Government corporation (as defined in 

(II) such minimum dollar value does not section 103 of title 5). exceed $10.00; or (7) Institution of higher education (ii) of any Federal agency or institution 

of higher education to set a maximum dol­ The term "institution of higher education" 

lar value for the acceptance by that Federal has the same meaning as in 1001 1 and 1002 of 

agency or institution of higher education of title 20. 

credit cards, to the extent that such max­ (8) Interchange transaction fee imum dollar value does not differentiate between issuers or between payment card net­ The term "interchange transaction fee" means 

works. any fee established, charged or received by a 

payment card network for the purpose of com­ (B) Increase in minimum dollar amount pensating an issuer for its involvement in an The Board may, by regulation prescribed electronic debit transaction. 

pursuant to section 553 of title 5, increase the 

amount of the dollar value listed in subpara­ (9) Issuer 

graph (A)(i)(II). The term "issuer" means any person who is­

(4) Rule of sues construction a debit card, or credit card, or the agent of 

such person with respect to such card. No provision of this subsection shall be construed to authorize any person- (10) Network fee 

(A) to discriminate between debit cards with­ The term "network fee" means any fee charged in a payment card network on the basis of the and received by a payment card network with issuer that issued the debit card; or respect to an electronic debit transaction, other (B) to discriminate between credit cards with­ than an interchange transaction fee. in a payment card network on the basis of the 

issuer that issued the credit card. (11) Payment card network 

(c) Definitions The term "payment card network" means an 

entity that directly, or through licensed mem­ For purposes of this section, the following defi­ bers, processors, or agents, provides the propri­ nitions shall apply: etary services, infrastructure, and software that 

(1) Affiliate route information and data to conduct debit card 

The term "affiliate" means any or company credit card that transaction authorization, clearcontrols, ance, is and controlled settlement, by, and or is that under a person common uses in 

control with another company. order to accept as a form of payment a brand of 

debit card, credit card or other device that may (2) Debit card be used to carry out debit or credit transacThe term "debit card"- tions. 

(A) means any card, or other payment code 

or device, issued or approved for use through 

a payment card network to debit an asset ac- 1 So in original. Probably should be preceded by "sections". 
Page 209 TITLE 15-COMMERCE AND TRADE § 1693q 

(d) Enforcement section 918 by Pub. L. 111-24, title IV, § 401(1), May 22, 

In 2009, 123 Stat. 1751. (1) general 

Compliance w1th the requirements imposed un­ CODIFICATION 

der this section shall be enforced under section Renumbering of section 918 of Pub. L. 90-321 as section 

16930 of this title. 919 by section 401(1) of Pub. L. 111-24 was executed prior 

to the renurnberings of section 919 of Pub. L. 90-321 as (2) Exception section 920 and then as section 921 by sections 1073(a)(3) 

Sections 1693m and 1693n of this title shall and 1075(a)(l) of Pub. L. 111-203 as the probable intent of 

not apply with respect to this section or the re­ Congress, notwithstanding section 403 of Pub. L. 111-24, 

quirements imposed pursuant to this section. set out as an Effective Date note under section 1693!-1 of 

this title and section 4 of Pub. L. 111-203, set out as an (Pub. L. 90-321, title IX, § 920, as added Pub. L. Effective Date note under section 5301 of Title 12, Banks 

111-203, title X, § 1075(a)(2), July 21, 2010, 124 Stat. and Banking, which provided that the renumbering by 

2068.) Pub. L. 111-24 was effective 15 months after May 22, 2009, 

and the renurnberings by Pub. L. 111-203 were effective 1 

PRlOR PRoVISIONS day after July 21, 2010. 

A prior section 920 of Pub. L. 90-321 was renumbered PRIOR PRoVISIONS section 921 and is classified to section 1693p of this title. 

Two other prior sections 920 of Pub. L. 90-321 were re­ Two prior sections 921 of Pub. L. 90-321 were renumnumbered section 922 and are classified to sections 1693q bered section 922 and are classified to sections 1693q and 

and 1693r of this title. 1693r of this title. 

Another prior section 921 of Pub. L. 90-321 was renum­ EFFECTIVE DATE bered section 923 and is classified as an Effective Date 

note under section 1693 of this title. Section effective 1 day after July 21, 2010, except as 

otherwise provided, see section 4 of Pub. L. 111-203. set AMENDMENTS out as a note under section 5301 of Title 12, Banks and 

Banking. 2010-Pub. L. 111-203, § 1084(1), substituted "Bureau" 

for "Board" wherever appearing. 

§ 1693p. Reports to Congress 1982-Subsec. (a). Pub. L. 97--375 struck out requirement that the Attorney General make a report on the (a) Not later than twelve months after the effec­ same terms as the Board, and that such report also con­ tive date of this subchapter and at one-year inter­ tain an analysis of the impact of this subchapter on the 

vals thereafter, the Bureau shall make reports to operation, workload, and efficiency of the Federal courts, 

the Congress concerning the administration of its and substituted "necessary and appropriate" for "necesfunctions under this subchapter, including such sary or appropriate". 

recommendations as the Bureau deems necessary EFFECTIVE DATE OF 2010 AMENDMENT and appropriate. In addition, each report of the 

Bureau shall include its assessment of the extent Amendment by section 1084(1) of Pub. L. 111-203 effective on the designated transfer date, see section 1100H of to which compliance w1th this subchapter is be­ Pub. L. 111-200, set out as a note under section 652a of ing achieved, and a summary of the enforcement Title 5, Government Organization and Employees. actions taken under section 16930 1 of this title. In 

such report, the Bureau shall particularly address § 1693q. Relation to State laws 

the effects of this subchapter on the costs and This subchapter does not annul, alter, or affect benefits to financial institutions and consumers, the laws of any State relating to electronic fund on competition, on the introduction of new tech­ transfers, dormancy fees, inactivity charges or fees, nology, on the operations of financial institutions, service fees, or expiration dates of gift certifi­ and on the adequacy of consumer protection. cates, store gift cards, or general-use prepaid cards, (b) In the exercise of its functions under this 

except to the extent that those laws are incon­ subchapter, the Bureau may obtain upon request sistent with the provisions of this subchapter, and the views of any other Federal agency which, in then only to the extent of the inconsistency. A the judgment of the Bureau, exercises regulatory State law is not inconsistent with this subchapter or supervisory functions with respect to any class if the protection such law affords any consumer of persons subject to this subchapter. is greater than the protection afforded by this 

(Pub. L. 90-321, title IX, § 921, formerly § 918, as subchapter. The Bureau shall, upon its own mo­ added Pub. L. 96-630, title XX, § 2001, Nov. 10, 1978, tion or upon the request of any financial institu92 Stat. 3740; amended Pub. L. 97-375, title II, §209(a), tion, State, or other interested party, submitted 

Dec. 21, 1982, 96 Stat. 1825; renumbered § 919, Pub. in accordance with procedures prescribed in reg­ L. 111-24, title IV, § 401(1), May 22, 2009, 123 Stat. ulations of the Bureau, determine whether a State 

1751; renumbered §920, renumbered §921, and amend­ requirement is inconsistent or affords greater pro­ ed Pub. L. 111-203, title X, §§ 1073(a)(3), 1075(a)(l), tection. If the Bureau determines that a State re­ 1084(1), July 21, 2010, 124 Stat. 2060, 2068, 2081.) quirement is inconsistent, financial institutions 

shall incur no liability under the law of that State REFERENCES IN TEXT for a good faith failure to comply with that law, 

For effective date of this subchapter, referred to in notwithstanding that such determination is sub­ subsec. (a), see section 921 of Pub. L. 90-321, set out as an sequently amended, rescinded, or determined by Effective Date note under section 1693 of this title. judicial or other authority to be invalid for any Section 16930 of this title, referred to in subsec. (a), 

was in the original "section 917 of this title", and was reason. This subchapter does not extend the aptranslated as meaning section 918 of title I of Pub. L. plicability of any such law to any class of per90-321 to reflect the probable intent of Congress and the sons or transactions to which it would not otherrenumbering of section 917 of title I of Pub. L. 90-321 as wise apply. 

(Pub. L. 90-321, title IX, § 922, formerly § 919, as 1 See References in Text nnte below. added Pub. L. 96-630, title XX, § 2001, Nov. 10, 1978, 

Case 2:22-cv-04260 Document 2-2 Filed 07/20/22 Page 23 of 24 PageID #: 230 
§ 1693r TITLE 15--COMMERCE AND TRADE Page 210 

92 Stat. 3741; renumbered § 920 and amended Pub. section 16931-1 of this title and section 4 of Pub. L. 111-203 

L. 111-24, title IV, §§401(1), 402, May 22, 2009, 123 set out as an Effective Date note under section 5301 of 

Stat. 1751, 1754; renumbered §921, renumbered §922, Title 12, Banks and Banking, which provided that the reand amended Pub. L. 111-203, title X, §§ 1073(a)(3), numbering by Pub. L. 111-24 was effective 15 months after May 22, 2009, and the renumbering by Pub. L. 111-203 1075(a)(l), 1084(1), July 21, 2010, 124 Stat. 2060, 2068, was effective 1 day after ,July 21, 2010. 2081.) 

PRIOR PROVISIONS CODIFICA'l'ION 

A prior section 922 of Pub. L. 90--321 was renumbered Another section 922 of Pub. L. 90--321 is classified to section 923 and is classified as an Effective Date note un­ section 1693r of this title. der section 1693 of this title. Renumbering of section 919 of Pub. L. 90--321 as section 

920 by section 401(1) of Pub. L. 111-24 was executed prior AMENDMENTS to the renumberings of section 920 of Pub. L. 90--321 as 2010-Pub. L. 111-203, section 922 § 1084(1), substituted "Bureau" 921 and then as section by sections 1073(a)(3) for "Board" in two places. and 1075(a)(l) of Pub. L. 111-203 as the probable intent of 

Congress, notwithstanding section 403 of Pub. L. 111-24, EFI<'ECTIVE DATE OF 2010 AMENDMENT set out as an Effective Date note under section 16931-1 of 

this title and section 4 of Pub. L. 111-203, set out as an Amendment by section 1084(1) of Pub. L. 111-203 effecEffective Date note under section 5301 of Title 12, Banks tive on the designated transfer date, see section UOOH of 

and Banking, which provided that the renumbering by Pub. L. 111-203, set out as a note under section 552a of 

Pub. L. 111-24 was effective 15 months after May 22, 2009, Title 5, Government Organization and Employees. 

and the renumberings by Pub. L. 111-203 were effective 1 

day after July 21, 2010. CIIAP'rER 42-INTERSTATE LAND SALES 

PRIOR PROVISIONS Sec. 

1701. Definitions. 

A prior section 922 of Pub. L. 90---321 was renumbered 1702. Exemptions. 

section 923 and is classified as an Effective Date note un­ 1703. Requirements respecting sale or lease of lots. 

der section 1693 of this title. 1704. Registration of subdivisions. 

1705. Information required in statement of record. 

AMENDMENTS 1706. Effective date of statements of record and 

§ amendments thereto. 2010-Pub. L. 111-203, 1084(1), substituted "Bureau" 

1707. Property report. for "Board" wherever appearing. 1708. Certification of substantially equivalent State 2009-Pub. L. 111-24, § 402, inserted "dormancy fees, inlaw. activity charges or fees, service fees, or expiration dates 

1709. Civil liabilities. of gift certificates, store gift cards, or general-use pre­ 1710. Court review of orders. paid cards," after "electronic fund transfers,". 1711. Limitation of actions. 

EFFECTIVE DATE OF 2010 AMENDMENT 1712. Contrary stipulations void. 

1713. Additional remedies. Amendment by section 1084(1) of Pub. L. 111-203 effec­ 1714. Investigations, injunctions, and prosecution of 

tive on the designated transfer date, see section 1100H of offenses. 

Pub. L. 111-203, set out as a note under section 552a of 1715. Administration. 

Title 5, Government Organization and Employees. 1716. Unlawful representations. 

1717. Penalties for violations. EFFECTIVE DATE OF 2009 AMENDMENT 1717a. Civil money penalties. 

Amendment by Pub. L. 111-24 effective 15 months after 1718. Rules, regulations, and orders. 

May 22, 2009, see section 403 of Pub. L. 111-24, set out as 1719. Jurisdiction of offenses and suits. 

an Effective Date note under section 16931-1 of this title. 1719a. Repealed. 

1720. Authorization of appropriations. 

§ 1693r. Exemption for State regulation § 1701. Definitions 

The Bureau shall by regulation exempt from For the purposes of this chapter, the term­ the requirements of this subchapter any class of (1) "Director'' means the Director of the Bu­ electronic fund transfers within any State if the reau of Consumer Financial Protection; Bureau determines that under the law of that State (2) "person" means an individual, or an un­ that class of electronic fund transfers is subject incorporated organization, partnership, associa­ to requirements substantially similar to those im­ tion, corporation, trust, or estate; posed by this subchapter, and that there is ade­ (3) "subdivision" means any land which is lo­ quate provision for enforcement. cated in any State or in a foreign country and 

(Pub. L. 90-321, title IX, § 922, formerly § 920, as is divided or is proposed to be divided into lots, 

added Pub. L. 95-630, title XX, § 2001, Nov. 10, 1978, whether contiguous or not, for the purpose of 

92 Stat. 3741; renumbered § 921, Pub. L. 111-24, title sale or lease as part of a common promotional IV, § 401(1), May 22, 2009, 123 Stat. 1751; renum­ plan; bered § 922 and amended Pub. L. 111-203, title X, (4) "common promotional plan" means a plan, §§ 1073(a)(3), 1084(1), July 21, 2010, 124 Stat. 2060, undertaken by a single developer or a group of 

2081.) developers acting in concert, to offer lots for 

sale or lease; where such land is offered for sale CODIFICATION by such a developer or group of developers actAnother section 922 of Pub. L. 90--321 is classified to ing in concert, and such land is contiguous or is 

section 1693q of this title. known, designated, or advertised as a common Renumbering of section 920 of Pub. L. 90--321 as section unit or by a common name, such land shall be 921 by section 401(1) of Pub. L. 111-24 was executed prior presumed, without regard to the number of lots to the renumbering of section 921 of Pub. L. 90--321 as 

section 922 by section 1073(a)(3) of Pub. L. 111-203 as the covered by each individual offering, as being ofprobable intent of Congress, notwithstanding section 403 fered for sale or lease as part of a common proof Pub. L. 111-24, set out as an Effective Date note under motional plan; 

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