Electronic Disclosures
September 20, 1999
Circular No. 11184

Revised Proposals for Electronic Delivery of Federally Mandated Disclosures
Under Consumer Protection Regulations B, E, M, Z, and DD

Interim Rule on Electronic Deposit Account Statements
Under Regulation DD

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:


The following is from a statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has requested comment on revised proposals to permit electronic delivery of federally mandated disclosures under five consumer protection regulations: B (Equal Credit Opportunity), E (Electronic Fund Transfers), M (Consumer Leasing), Z (Truth in Lending), and DD(Truth in Savings).

Comment is requested by October 29, 1999.

In March 1998, the Board published an interim rule to Regulation E and proposed changes to Regulations B, M, Z, and DD to permit financial institutions and others to send electronic disclosures, if the consumer agrees, with few other requirements [see our Circular No. 11041]. Disclosures may be sent to the consumer's e-mail address or posted on a web site.

In response to comments, the Board, on August 18, 1999, approved the publication of revised and more comprehensive proposals, together with proposed commentary that would provide guidance on electronic communication. The interim rule to Regulation E remains in effect. The Board also published an interim rule to Regulation DD regarding the electronic delivery of periodic statements.

Interim Rule

The following is from the Board's announcement of the related interim rule:

The Federal Reserve Board has published an interim rule to Regulation DD, which implements the Truth in Savings Act. The rule permits depository institutions to deliver disclosures on periodic statements to a consumer's e-mail account or post them on a web site, if the consumer agrees.

The interim rule is effective September 1, 1999.

Under an earlier interim rule published by the Board in March 1998, periodic statements and other disclosures required under Regulation E (which implements the Electronic Fund Transfer Act) may be delivered electronically if the consumer agrees. Institutions commonly provide a single periodic statement that complies with Regulations E and DD.

Therefore, this interim rule for Regulation DD, approved by the Board on August 18, should allow depository institutions to deliver deposit account statements electronically under a single set of procedures, and avoid the cost of printing and mailing the information.

The interim rule to Regulation DD and the proposals to amend Regulations B, E, M, Z, and DD, as published in the Federal Register of September 14, are available as a PDF file (pdf - 1027kb). Comments on the proposals should be submitted directly to the Board, as specified in the notice. Questions may be directed, at this Bank, to Janice A. Oser, Examining Officer, Compliance Examinations Department.