Benefit Card Fairness Act of 2010 - Amends the Electronic Fund Transfer Act (EFTA) to extend its coverage to any account directly or indirectly established through a government agency to which electronic fund transfers (EFTs) are made by or on behalf of a government agency on a recurring basis (government payment account).
Repeals the exemption from EFTA disclosure, protection, responsibility, and remedy requirements of electronic benefit transfer systems established by a federal, state, or local government agency for distributing needs-tested benefits, such as through automated teller machines (ATMs) or point-of-sale terminals.
Requires a financial institution to offer a government payment account in compliance with this Act and with the requirements of the Federal Deposit Insurance Corporation (FDIC) for the provision of insurance to the consumer.
Prescribes requirements for consumer choice in making an EFT to a government payment account, as well as for access to account balance and transaction history.
Prohibits the assessment of specified fees on a government payment account, except certain transaction fees, a nominal fee of up to $1 for written periodic statements, and other permissible fees for specific services beyond ordinary use of the account.
Requires a financial institution to make certain disclosures including: (1) the means to obtain account balance; (2) written account history; (3) fee information; and (4) error resolution.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4552 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4552
To amend the Electronic Fund Transfer Act to provide protection for
consumers who have government benefit cards.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 29, 2010
Mr. Levin (for himself and Mr. McDermott) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Electronic Fund Transfer Act to provide protection for
consumers who have government benefit cards.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Benefit Card Fairness Act of 2010''.
SEC. 2. PROTECTION FOR CONSUMERS WHO HAVE GOVERNMENT BENEFIT CARDS.
(a) Government Payment Accounts Included in Definition of
Account.--Section 903 of the Electronic Fund Transfer Act (15 U.S.C.
1693a) is amended--
(1) in paragraph (2), by inserting ``and includes a
government payment account,'' before ``but'';
(2) by redesignating paragraphs (9) and (10) as paragraphs
(10) and (11), respectively; and
(3) by inserting after paragraph (8) the following:
``(9) the term `government payment account' means an
account that is directly or indirectly established through a
government agency and to which electronic fund transfers are
made by or on behalf of a government agency on a recurring
basis;''.
(b) Elimination of Exemption for Government Electronic Benefit
Transfer Systems.--
(1) In general.--Section 904(d) of such Act (15 U.S.C.
1693b(d)) is amended by striking paragraph (2) and
redesignating paragraph (3) as paragraph (2).
(2) Conforming amendments.--
(A) Section 905(a)(10)(A) of such Act (15 U.S.C.
1693c(a)(10)(A)) is amended by striking
``903(d)(3)(D)(i)'' and inserting ``903(d)(2)(D)(i)''.
(B) Section 910(d) of such Act (15 U.S.C. 1693h(d))
is amended by striking ``903(d)(3)(B)(i)'' each place
it appears and inserting ``903(d)(2)(B)(i)''.
(c) Consumer Protection.--The Electronic Fund Transfer Act (15
U.S.C. 1693-1693r) is amended by adding at the end the following:
``SEC. 922. GOVERNMENT PAYMENT ACCOUNTS.
``(a) In General.--A financial institution shall not offer a
government payment account except in compliance with this section.
``(b) Consumer Choice.--An electronic fund transfer on behalf of a
consumer may not be made automatically to a government payment account,
unless--
``(1) the consumer has first been offered and has declined
the choice of direct deposit to an existing account chosen by
the consumer;
``(2) the consumer has, when offered the choice of direct
deposit to an existing account, been provided a clear and
conspicuous list of the types and amounts of all fees and
charges associated with the government payment account; and
``(3) the consumer has the opportunity, in case of
hardship, to opt out of electronic transfer of payments to the
consumer and elect to receive payments in the form of a check.
``(c) Access to Account Balance and Transaction History.--
``(1) A financial institution shall provide the means for
the consumer to access the balance of a government payment
account through a telephone line, online, and at a terminal
(such as by providing balance information, routinely or on
request, on a screen or on a receipt from an automated teller
machine).
``(2) A financial institution shall either provide periodic
statements pursuant to section 906(c), or make available to a
consumer at a consumer's option all of the following without a
fee, except for the fee permitted in subparagraph (E):
``(A) A written history of the consumer's account
transactions that is provided promptly in response to
an oral or written request and that is available for
transactions at least 24-months preceding the date of
the request by the consumer.
``(B) An electronic history of the consumer's
account transactions, such as through an Internet Web
site, that covers at least 60 days preceding the date
the consumer electronically accesses the account.
``(C) An electronic periodic statement.
``(D) Electronic mail notification of the
availability of an electronic history or an electronic
periodic statement at least once each period, unless
the consumer has declined to provide an electronic mail
address.
``(E) The choice of receiving a written periodic
statement upon payment of a nominal fee, not to exceed
$1 per statement.
``(3) A history of account transactions provided under
subparagraphs (A) and (B) of paragraph (1) of this subsection
shall include the information required by section 906(c).
``(d) Fees.--
``(1) In general.--A fee or charge may not be assessed on a
government payment account except as authorized by this
section.
``(2) Prohibited fees.--A fee or charge may not be charged
on a government payment account for any of the following:
``(A) The first withdrawal from an in-network
automated teller machine and the first withdrawal from
a bank teller, after each deposit.
``(B) An application.
``(C) Participation, whether on a one-time or
periodic basis.
``(D) An overdraft, including a shortage of funds
or a transaction processed for an amount exceeding the
account balance.
``(E) A purchase.
``(F) A declined transaction.
``(G) Inactivity.
``(H) An inquiry, or balance or transaction
information, at an automated teller machine or through
the Internet or an automated system.
``(I) Customer service.
``(J) An ad hoc request for a statement.
``(K) An extension of credit.
``(L) 1 replacement card each year.
``(M) Anything for which a fee is not permitted by
or under paragraph (3).
``(3) Permitted fees.--
``(A) Nominal fee for written periodic
statements.--The consumer may be charged a nominal fee
not to exceed $1 for written periodic statements if the
fee is designed solely to cover the costs of printing
and mailing the statements, and if other account
information is made available in accordance with this
section.
``(B) Transaction fees.--Subject to subparagraph
(C), a consumer may be charged a fee for only the
following transactions in connection with a government
payment account:
``(i) The second or any subsequent
withdrawal from an in-network automated teller
machine and the second or any subsequent
withdrawal from a bank teller, after each
deposit.
``(ii) A surcharge imposed by a non-network
automated teller machine in compliance with
section 904(d)(3).
``(iii) A transfer to another account.
``(iv) Bill payment.
``(v) A replacement card after the first
one each year.
``(vi) Expedited delivery of a replacement
card.
``(vii) International automated teller
machine withdrawal.
``(viii) A purchase or withdrawal in an
international currency.
``(C) Authority to permit other fees.--The Board
may by regulation authorize other permissible fees for
specific services beyond ordinary use of the account.
``(e) Disclosures.--
``(1) In general.--A financial institution shall disclose
the following:
``(A) Means to obtain account balance.--The means
by which the consumer may obtain information without a
fee concerning the account balance, including a
telephone number and Web site.
``(B) Written account history.--A summary of the
consumer's right to receive a written account history
on request and other means to obtain transaction
information.
``(C) Fee information.--
``(i) Any fee or charge associated with the
account shall be disclosed in a prominent
location on or in conjunction with any
application or solicitation, or other
applicable document, and in the form of a table
with headings, content, and format
substantially similar to the tables required
pursuant to section 127(c)(1)(A) of the Truth
in Lending Act and regulations under that
section.
``(ii) The card or device used to access
the account shall display a toll-free number
and Web site at which a clear and conspicuous
list of fees and charges may be obtained.
``(iii) The initial disclosure of fees and
charges shall include a wallet-sized summary of
the fees and charges, the Web site where fee
information can be found, and the telephone
number for customer service.
``(2) Modified requirements.--The following requirements
shall apply to financial institutions that do not furnish
periodic statements for the transfers referred to in subsection
(c):
``(A) Error resolution.--The financial institution
shall provide a notice to consumers concerning error
resolution as prescribed in regulations of the Board.
``(B) Limitations on liability.--For purposes of
section 909(a), the 60-day period for reporting an
unauthorized transfer that appears on a periodic
statement shall begin with transmittal of a written
account history or other account information, provided
to or accessed by the consumer under subsection (c) of
this section, in which the unauthorized transfer is
first reflected.
``(C) Error resolution.--If a financial institution
receives oral or written notice of an error from the
consumer within 60 days after the consumer, under
subsection (c) of this section, obtains a written
account history or other account information in which
the error is first reflected, the financial institution
shall comply with section 908.
``(f) FDIC Insurance.--A financial institution shall not offer
electronic fund transfer services in connection with a government
payment account unless the account complies with requirements of the
Federal Deposit Insurance Corporation for the provision of insurance by
the Federal Deposit Insurance Corporation to the consumer on either a
direct or pass-through basis.
``(g) Standard State Contracts.--The Secretary of the Treasury, in
consultation with the Secretary of Labor and the Secretary of Health
and Human Services, shall promulgate a request for proposals from
financial institutions for a standard contract into which a State or
local government agency may enter for government payment account
services in compliance with this section.
``(h) Definition of Financial Institution.--In this section, the
term `financial institution' means any provider of a government payment
account.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect 1 year after
the date of the enactment of this Act.
(2) Inapplicability to services provided under contracts
entered into before enactment.--The amendments made by this
section shall not apply with respect to the provision of goods
or services under a contract entered into before the date of
the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line