Federal Reserve Board Issues Proposed Rule Amending Regulation E, As Required By Dodd-Frank

On Monday, May 23, the Federal Reserve Board (the "Board") issued proposed revisions to its Regulation E (Electronic Fund Transfers) in order to implement changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Act").

The Electronic Fund Transfer Act and Regulation E currently govern the rights, liabilities and responsibilities of participants in electronic fund transfers ("EFTs"). EFTs are payment transactions that result in a debit or a credit to a consumer's asset account. Examples are automated teller machine ("ATM") transactions, point of sale ("POS") payments, preauthorized automatic transfers and automatic bill payment plans.

The Act creates new protections for consumers who send "remittance transfers" to designated recipients in foreign countries. Generally, a "remittance transfer" is one in which a consumer sends funds to a relative or other individual located in another country. The proposed rule and the Act regulate