FCA Info Memo - Amendments to Federal Reserve Regulations B, M, and Z Regarding Electronic Delivery of Consumer Disclosures

Informational Memorandum
Subject:	Amendments to Federal Reserve Regulations B, M, and Z Regarding Electronic Delivery of Consumer Disclosures
Date of Memorandum:	12/05/2007
Expiration Date:
Office:	OE
Signed By:	McKenzie, Thomas
FCA Contact Person:	Stephens, David (703) 883-4412
Contact Phone:
List of Attachments:

Farm Credit Administration 1501 Farm Credit Drive

McLean, VA 22102-5090

(703) 883-4000

Informational Memorandum

December 5, 2007

To: Chief Executive Officer
All Farm Credit Institutions

From: Thomas G. McKenzie, Director and Chief Examiner
Office of Examination

Subject: Amendments to Federal Reserve Regulations B, M, and Z Regarding Electronic Delivery of Consumer Disclosures

The Federal Reserve Board (FRB) recently adopted amendments to Regulation B (Equal Credit Opportunity, at 12 CFR Part 202), Regulation M (Consumer Leasing, at 12 CFR Part 213), and Regulation Z (Truth in Lending, at 12 CFR Part 226) to clarify the requirements for providing consumer disclosures in electronic form. These final rules were effective December 1, 2007. The mandatory compliance date is October 1, 2008.

In 2001, the FRB published interim final rules to establish uniform standards for the electronic delivery of disclosures. However, the mandatory compliance date for these rules was later lifted and institutions have not been required to comply with the 2001 interim final rules. Accordingly, with these amendments the FRB is withdrawing the interim final rules. (This Informational Memorandum (IM) replaces our IMs dated September 7, 2001, and September 25, 2001, regarding these interim final rules.)

In addition, the FRB amendments provide guidance on the electronic delivery of disclosures. For example, the amendments provide that when a consumer accesses a credit application, lease advertisement, or credit card application in electronic form, disclosures may be provided to the consumer in electronic form on or with the application or advertisement without regard to the consumer consent and other provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act).
According to the FRB, these amendments simplify the regulations by:

1. Withdrawing certain portions of the 2001 interim final rules that restate or cross-reference provisions of the E-Sign Act and accordingly are unnecessary;

2. Withdrawing provisions of the 2001 interim final rules that may impose undue burdens on electronic banking and commerce and may be unnecessary for consumer protection; and

3. Adopting certain provisions that provide guidance on the use of electronic disclosures.

FCA Regulation 12 CFR § 609.915, governing electronic commerce, provides that System institutions must comply with Regulations B, M, and Z.

The amendments were published at 72 FR 63445 (Regulation B), 72 FR 63456 (Regulation M), and 72 FR 63462 (Regulation Z) (November 9, 2007).

If you have any questions about this memorandum, please contact Jane Virga, Senior Counsel, Office of General Counsel, at (703) 883-4071, or by e-mail at virgaj@fca.gov, or Dale Aultman, Senior Policy Analyst, Office of Regulatory Policy, at (703) 883-4381, or by
e-mail at aultmand@fca.gov, and/or David Stephens, Office of Examination, at (703) 883-4412, or by e-mail at stephensd@fca.gov.