This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

10297 

Vol. 87, No. 37 

Thursday, February 24, 2022 

1 15 U.S.C. 1693k. 

2Public Law 95–630, 92 Stat. 3728 (1978). 

3 15 U.S.C. 1693b. 

4 Public Law 111–203, tit. X, section 1084, 124 

Stat. 1376, 2081 (2010) (codified at 15 U.S.C. 1693a 

et seq.). See also Dodd-Frank Act section 1061(b), 

124 Stat. 2036 (codified at 12 U.S.C. 5581(b)). 

5These provisions were originally adopted as 12 

CFR part 205 but, upon transfer of authority in the 

Dodd-Frank Act to implement Regulation E to the 

Bureau, were renumbered as 12 CFR part 1005. 76 

FR 81020 (Dec. 27, 2011). 

6 12 CFR 1005.3(b)(1). 

7 44 FR 18468, 18480 (Mar. 28, 1979). 

8 12 CFR 1005.2(b)(1). 

9 59 FR 10678 (Mar. 7, 1994). 

10 Public Law 104–193, 110 Stat. 2105 (1996). 11 62 FR 43467 (Aug. 14, 1997). 12 81 FR 83934 (Nov. 22, 2016). 13See 82 FR 18975 (Apr. 25, 2017) and 83 FR 

6364 (Feb. 13, 2018). These amendments, among 

other things, extended the effective date of the 

Prepaid Accounts Rule to April 1, 2019. 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1005 

Bulletin 2022–02: Compliance Bulletin 

on the Electronic Fund Transfer Act’s 

Compulsory Use Prohibition and 

Government Benefit Accounts 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Compliance bulletin. 

SUMMARY: The Electronic Fund Transfer 

Act (EFTA) provides, among other 

things, that no person may require a 

consumer to establish an account for 

receipt of electronic fund transfers with 

a particular financial institution as a 

condition of receipt of a government 

benefit. The Bureau of Consumer 

Financial Protection (Bureau) is issuing 

this Compliance Bulletin to reiterate 

that this prohibition in EFTA applies to 

government benefit accounts. 

DATES: This bulletin is applicable on 

February 24, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Eliott C. Ponte, Counsel, or Kristine M. 

Andreassen, Senior Counsel, Office of 

Regulations, at 202–435–7700. If you 

require this document in an alternative 

electronic format, please contact CFPB_

Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Discussion 

Section 913 of EFTA provides, among 

other things, that no person may require 

a consumer to establish an account for 

receipt of electronic fund transfers 

(EFTs) with a particular financial 

institution as a condition of 

employment or receipt of a government 

benefit.1 This provision, often referred 

to as the compulsory use prohibition, is 

implemented in § 1005.10(e)(2) of 

Regulation E. The Bureau is issuing this 

Compliance Bulletin to reiterate that the 

compulsory use prohibition in EFTA 

applies to government benefit accounts. 

A. Background 

Congress enacted EFTA in 1978 with 

the purpose of ‘‘provid[ing] a basic 

framework establishing the rights, 

liabilities, and responsibilities of 

participants in electronic fund transfer 

systems.’’ 2 EFTA’s primary objective is 

‘‘the provision of individual consumer 

rights.’’ 3 Congress also empowered the 

Board of Governors of the Federal 

Reserve System (Board) to promulgate 

regulations implementing EFTA. With 

the adoption of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (Dodd-Frank Act), authority to 

implement most of EFTA transferred to 

the Bureau.4

The regulations first promulgated by 

the Board to implement EFTA now 

reside in subpart A of Regulation E.5

These rules provide a broad suite of 

protections to consumers who make 

EFTs, and for accounts from which 

consumers can make EFTs. An EFT is 

any transfer of funds initiated through 

an electronic terminal, telephone, 

computer, or magnetic tape for the 

purpose of ordering, instructing, or 

authorizing a financial institution to 

debit or credit a consumer’s account.6 In 

its initial rulemaking to implement 

EFTA, the Board developed a broad 

definition of ‘‘account,’’ which closely 

mirrored the definition of ‘‘account’’ in 

EFTA.7 The definition provides that, 

subject to certain specific exceptions, an 

account is a demand deposit (checking), 

savings, or other consumer asset 

account (other than an occasional or 

incidental credit balance in a credit 

plan) held directly or indirectly by a 

financial institution and established 

primarily for personal, family, or 

household purposes.8

In 1994, the Board amended 

Regulation E to extend Regulation E’s 

protections to accounts used for the 

electronic distribution of government 

benefits (1994 EBT Rule).9 After the 

Board finalized the 1994 EBT Rule, 

Congress amended EFTA to exempt 

‘‘needs-tested’’ State and local 

electronic benefit transfer (EBT) 

programs.10 The Board subsequently 

adopted a rule exempting EBT programs 

established or administered by State or 

local government agencies from 

Regulation E. However, all accounts 

used to distribute benefits for federally 

administered programs (including 

Federal needs-tested programs) as well 

as non-needs tested State and local 

government benefit programs remained 

covered by Regulation E.11

On October 5, 2016, the Bureau issued 

a final rule titled ‘‘Prepaid Accounts 

Under the Electronic Fund Transfer Act 

(Regulation E) and the Truth In Lending 

Act (Regulation Z)’’ (2016 Final Rule).12

The 2016 Final Rule, as subsequently 

amended,13 is referred to herein as the 

Prepaid Accounts Rule. The Prepaid 

Accounts Rule, among other things, 

extended Regulation E coverage to 

prepaid accounts and adopted 

provisions specific to such accounts. 

The definition of ‘‘prepaid account’’ in 

the Prepaid Accounts Rule includes 

government benefit accounts (as defined 

in § 1005.15(a)(2)), which were already 

covered by Regulation E since the mid1990s. The Prepaid Accounts Rule 

generally maintained the existing 

provisions specific to government 

benefit accounts, while adding certain 

new requirements such as preacquisition disclosures. The Prepaid 

Accounts Rule did not change the 

compulsory use prohibition in 

§ 1005.10(e) of Regulation E, but did add 

commentary to clarify the compulsory 

use prohibition’s application to 

government benefits (comment 10(e)(2)– 

2), which is in line with pre-existing 

commentary regarding payroll card 

accounts (comment 10(e)(2)–1). 

B. Compulsory Use Prohibition 

As mentioned above, the compulsory 

use prohibition of EFTA, as 

implemented by Regulation E, provides 

that no person may require a consumer 


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10298 Federal Register / Vol. 87, No. 37 / Thursday, February 24, 2022 / Rules and Regulations 

14 12 CFR 1005.10(e). 

15 12 CFR 1005.2(j). 

16 12 CFR 1005.3(a). 

17 12 CFR 1005.15(a)(2). 

18See 81 FR 83934, 83942 (Nov. 22, 2016). While 

these accounts do not constitute ‘‘government 

benefit accounts’’ as defined in § 1005.15(a)(2), the 

Bureau notes that they may still be ‘‘prepaid 

accounts’’ under one of the other prongs of that 

definition in § 1005.2(b)(3). To the extent that they 

are prepaid accounts, the requirements of the 

Prepaid Accounts Rule apply. 

19See 81 FR 83934, 83995 (Nov. 22, 2016); In re 

JPay, LLC, File No. 2021–CFPB–0006 (Oct. 19, 

2021), www.consumerfinance.gov/enforcement/ 

actions/jpay-llc/. 

20See id. at 83995, 84320. 

21 In 2013, the Bureau issued a Compliance 

Bulletin on Payroll Card Accounts (Payroll Card 

Bulletin) to, among other things, reiterate that the 

compulsory use provision of EFTA and Regulation 

E prohibits employers, financial institutions, and 

other persons from mandating that employees 

receive wages only on a payroll card at a particular 

institution. As explained in the Payroll Card 

Bulletin, payroll card accounts are accounts that are 

established directly or indirectly through an 

employer, and to which transfers of the consumer’s 

salary, wages, or other employee compensation are 

made on a recurring basis. See CFPB Bulletin 2013– 

10 (Sept. 12, 2013), www.consumerfinance.gov/ 

compliance/supervisory-guidance/bulletin-payrollcard-accounts/. 

22 12 CFR 1005.10(e)(2) and comment 10(e)(2)–2. 

23See id. 

24 81 FR 83934, 83985 (Nov. 22, 2016). 

25 Id. 

26 12 CFR 1005.15(c)(2)(i). 

27 12 CFR 1005.15(c)(2). 

28 12 CFR 1005.15(c)(1). 

to establish an account for receipt of 

EFT with a particular financial 

institution as a condition of receipt of a 

government benefit.14 Person, for the 

purposes of Regulation E and the 

compulsory use prohibition, means a 

natural person or an organization, 

including a corporation, government 

agency, estate, trust, partnership, 

proprietorship, cooperative, or 

association.15 The compulsory use 

prohibition applies to all persons, not 

just financial institutions as defined in 

Regulation E.16 The compulsory use 

prohibition applies to ‘‘government 

benefit accounts,’’ which is defined as 

an account established by a government 

agency for distributing government 

benefits to a consumer electronically. 

However, for purposes of Regulation E, 

including the compulsory use 

prohibition, a government benefit 

account does not include an account for 

distributing needs-tested benefits in a 

program established under State or local 

law or administered by a State or local 

agency.17

The term ‘‘needs-tested’’ is not 

defined in EFTA or Regulation E. In the 

preamble to its 2016 Final Rule, the 

Bureau identified examples of needstested government benefit programs that 

are not ‘‘government benefit accounts’’ 

subject to the compulsory use 

prohibition, such as those used to 

distribute funds related to Temporary 

Assistance for Needy Families (TANF), 

Special Supplemental Nutrition 

Program for Women, Infants, and 

Children (WIC), and the Supplemental 

Nutrition Assistance Program (SNAP).18

Accounts established under programs 

administered by State or local agencies 

for benefits that are not needs-tested are 

‘‘government benefit accounts’’ subject 

to the compulsory use prohibition. 

Examples of government benefit 

accounts administered by State or local 

agencies that are subject to the 

compulsory use prohibition because 

they are not needs-tested include 

accounts used to distribute 

unemployment insurance, child 

support, certain prison and jail ‘‘gate 

money’’ benefits, and pension plan 

payments.19

In addition, all accounts used to 

distribute funds under federally 

administered benefits programs (even if 

those benefits are needs-tested) are 

‘‘government benefit accounts’’ subject 

to the compulsory use prohibition; for 

example, accounts used to distribute 

Social Security, Social Security 

Disability Insurance, and Supplemental 

Security Income (SSI) payments; or 

Federal tax credits like the Earned 

Income Tax Credit (EITC) or the Child 

Tax Credit (CTC) are subject to the 

compulsory use prohibition.20

The compulsory use prohibition 

ensures that consumers receiving the 

government benefits described above 

have a choice with respect to how they 

receive their funds. Government 

agencies, financial institutions, and 

other persons have several options 

available to them to ensure consumers 

are provided a choice.21 For example, a 

government agency that requires 

consumers to receive benefits through 

direct deposit will not violate the 

compulsory use prohibition if it allows 

consumers to choose the financial 

institution they want to use in receiving 

the direct deposit.22 Alternatively, a 

government agency may give a 

consumer the choice of having their 

benefits deposited at a particular 

institution (designated by the 

government agency) so long as the 

consumer is able to receive their 

benefits by another means.23

As the Bureau explained in the 2016 

Final Rule, the Bureau believes that 

consumers are not provided a choice 

when a consumer is required to receive 

the first payment of government benefits 

on a prepaid card (or otherwise at a 

particular institution), even if the 

consumer can later re-direct the 

payment to an account of their choice.24

In such a scenario, the consumer does 

not have a choice with respect to how 

to receive the first payment of the 

government benefit; rather, with respect 

to that first payment, the consumer was 

required to establish an account with 

the financial institution that issued the 

prepaid card as a condition of receiving 

the funds.25

In addition to having a choice with 

respect to how consumers receive their 

government benefits, Regulation E 

requires that a statement of the 

consumer’s payment options be 

included in disclosures provided before 

a consumer acquires a government 

benefit account. Specifically, that 

statement must disclose that (1) the 

consumer has several options to receive 

benefit payments, followed by a list of 

the options available to the consumer, 

and a statement directing the consumer 

to tell the agency which option the 

consumer chooses; or (2) the consumer 

does not have to accept the government 

benefit account and directing the 

consumer to ask about other ways to 

receive government benefit payments.26

As discussed more below, government 

benefit accounts are entitled to 

additional protections and disclosures 

under Regulation E. 

C. Additional Regulation E Protections 

for Government Benefit Accounts 

As mentioned above, government 

benefit accounts are entitled to the 

protections of EFTA generally, and 

Regulation E’s provisions applicable to 

prepaid accounts specifically. The 

protections in Regulation E for 

consumers who receive government 

benefits include the following: 

• Disclosures. Under Regulation E, 

consumers are entitled to three types of 

disclosures for government benefit 

accounts: Pre-acquisition disclosures, 

disclosures on the access device or entry 

point, and initial disclosures. 

Pre-acquisition disclosures for a 

government benefit account must set 

forth key information about the account 

that includes, as mentioned above, a 

statement regarding the consumer’s 

payment options.27 A government 

agency must provide the consumer with 

pre-acquisition disclosures before the 

consumer acquires a government benefit 

account.28

Disclosures on the access device or 

entry point for a government benefit 

account must contain the name of the 

financial institution that directly holds 

the account or issues the access device 

as well as a website and phone number 

that the consumer can use to contact 

that financial institution about the 


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Federal Register / Vol. 87, No. 37 / Thursday, February 24, 2022 / Rules and Regulations 10299 

29 12 CFR 1005.15(f), 1005.18(f). 

30 12 CFR 1005.15(f), 1005.18(f)(3). 

31 12 CFR 1005.15(e)(1) and (f), 

1005.18(h)(2)(ii)(A) and (iv). See generally 12 CFR 

1005.7(b). 

32 12 CFR 1005.7(a). 

33 12 CFR 1005.8(a)(1); 1005.15(f); 1005.18(f), 

(h)(2)(ii)(A), (iii), and (iv). 

34 12 CFR 1005.9(b); 1005.15(d)(1); and 

1005.18(h)(3)(i). 

35 15 U.S.C. 1693o(a)(5). 36Public Law 111–203, tit. X, 124 Stat. 1955 

(2010) (12 U.S.C. 5561 through 5567). 

government benefit account.29 These 

disclosures must be included on the 

access device or, if there is no physical 

access device, on a website, mobile 

application, or other entry point a 

consumer must visit to access the 

government benefit account 

electronically.30

Initial disclosures must set forth 

comprehensive fee information that may 

be imposed in connection with the 

account as well as the information 

required to be included in the initial 

disclosures for other accounts subject to 

Regulation E, which include, among 

other things, disclosures regarding a 

consumer’s liability for unauthorized 

EFTs, an error resolution notice, contact 

information for the financial institution 

providing the account, the types of 

transfers a consumer may make and any 

limitations on the frequency and dollar 

amount of transfers, and the fees 

associated with making.31 Initial 

disclosures must be made at account 

opening or before the first EFT occurs.32

• Change-in-Terms Notices. Changein-terms notices are required when a 

term or condition required to be 

disclosed in the initial disclosures 

changes or the change results in an 

increased fee, increased liability for the 

consumer, fewer types of available 

EFTs, or stricter limitations on the 

frequency or dollar amount of EFTs.33

• Access to Account History. 

Government agencies must either 

provide a periodic statement as required 

by Regulation E generally, or must make 

available to the consumer (1) the 

consumer’s account balance, by 

telephone; (2) an electronic history, 

such as through an website, of the 

consumer’s account transactions 

covering at least 12 months preceding 

the date the consumer electronically 

accesses the account; and (3) written 

account transaction histories provided 

upon request must cover at least the 24 

months preceding the date on which the 

government agency receives the 

consumer’s request for the account 

transaction history.34

• Limited Liability for Unauthorized 

Transfers and Error Resolution Rights. 

With limited modifications regarding 

the period within which an 

unauthorized transfer must be reported, 

Regulation E’s limited liability 

protections and error resolution rights 

fully apply to government benefit 

accounts. 

II. Conclusion 

The Bureau is issuing this 

Compliance Bulletin to reiterate that the 

compulsory use prohibition in EFTA 

applies to government benefit accounts, 

as defined in Regulation E. The Bureau 

notes that it is authorized, subject to 

certain exceptions, to enforce EFTA and 

Regulation E against any person subject 

to EFTA and Regulation E, including 

financial institutions.35 In addition, 

subject to certain exceptions, the Bureau 

has enforcement authority over covered 

persons offering or providing certain 

consumer financial products or 

services—including government benefit 

accounts—under the Consumer 

Financial Protection Act of 2010.36

Rohit Chopra, 

Director, Consumer Financial Protection 

Bureau. 

[FR Doc. 2022–03587 Filed 2–23–22; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 21 

[Docket No. FAA–2020–1086] 

Airworthiness Criteria: Special Class 

Airworthiness Criteria for the 

Amazon.com Services LLC MK27–2 

Unmanned Aircraft; Correction 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Issuance of final airworthiness 

criteria; correction. 

SUMMARY: The FAA published a 

document in the Federal Register on 

January 27, 2022, announcing the 

special class airworthiness criteria for 

the Amazon.com Services LLC Model 

MK27–2 unmanned aircraft. The 

document contained incorrect 

references to the applicant’s name. 

DATES: This correction is effective on 

February 24, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Christopher J. Richards, Emerging 

Aircraft Strategic Policy Section, AIR– 

618, Strategic Policy Management 

Branch, Policy and Innovation Division, 

Aircraft Certification Service, Federal 

Aviation Administration, 6020 28th 

Avenue South, Room 103, Minneapolis, 

MN 55450, telephone (612) 253–4559. 

SUPPLEMENTARY INFORMATION: 

Background 

On January 21, 2022, the FAA issued 

final airworthiness criteria for the 

Amazon.com Services LLC Model 

MK27–2 unmanned aircraft, which 

published in the Federal Register on 

January 27, 2022 (87 FR 4128). The 

original application identified the 

applicant name as Amazon Logistics, 

Inc. On November 19, 2020, Amazon 

Logistics, Inc., amended its application 

to change its applicant name to 

‘‘Amazon.com Services LLC.’’ As 

published, the document incorrectly 

referred to the original applicant name. 

Correction 

In the Federal Register of January 27, 

2022 (87 FR 4128), make the following 

corrections: 

1. On page 4128, in the first column, 

correct the subject heading to read 

‘‘Airworthiness Criteria: Special Class 

Airworthiness Criteria for the 

Amazon.com Services LLC MK27–2 

Unmanned Aircraft’’ 

2. On page 4128, in the first column, 

in the SUMMARY section, line 3, correct 

‘‘Amazon Logistics, Inc.’’ to read 

‘‘Amazon.com Services LLC’’. 

3. On page 4128, in the second 

column, in the SUPPLEMENTARY

INFORMATION section, line 1, correct 

‘‘Amazon Logistics, Inc.’’ to read 

‘‘Amazon.com Services LLC’’. 

Issued in Washington, DC, on February 15, 

2022. 

Ian Lucas, 

Manager, Policy Implementation Section, 

Policy and Innovation Division, Aircraft 

Certification Service. 

[FR Doc. 2022–03778 Filed 2–23–22; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2022–0142; Project 

Identifier AD–2022–00071–T; Amendment 

39–21955; AD 2022–05–04] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for all The 

Boeing Company Model 737–100, –200, 

–200C, –300, –400, –500, –600, –700, 


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