Overview
Title
Agency Information Collection Activities: Comment Request
Agencies
ELI5 AI
The Consumer Financial Protection Bureau (CFPB) wants to hear what people think about a rule that helps explain how money moves electronically from one bank to another, like when someone buys something with a card. They're especially interested in finding ways to make this rule better and see if it's still needed.
Summary AI
The Consumer Financial Protection Bureau (CFPB) is seeking public comments on their request to extend the existing information collection related to the Electronic Fund Transfer Act (Regulation E). This rule ensures that consumers receive clear information about electronic fund transfers and their rights. People have until May 9, 2025, to share their opinions. This effort is meant to evaluate whether the information collection is necessary and how it can be improved while minimizing the burden on respondents.
Abstract
In accordance with the Paperwork Reduction Act of 1995 (PRA), the Consumer Financial Protection Bureau (CFPB) requests the Office of Management and Budget's (OMB's) extension of the existing information collection titled "Electronic Fund Transfer Act (Regulation E)" approved under OMB Control Number 3170-0014.
Keywords AI
Sources
AnalysisAI
The recent notice from the Consumer Financial Protection Bureau (CFPB) regarding the Electronic Fund Transfer Act (Regulation E) invites public comments. The document aims to solicit feedback on extending the information collection associated with these regulations, which are crucial for ensuring consumers receive accurate and clear information about electronic fund transfers and their associated rights.
General Summary
The CFPB seeks to extend the current information collection approval from the Office of Management and Budget (OMB). By gathering public comments, the agency aims to evaluate the necessity and effectiveness of the information collected under Regulation E, which governs consumer rights related to various electronic fund transfer services such as ATM transactions, point-of-sale transfers, and online remittances. The Bureau encourages the public to submit comments by May 9, 2025, ensuring a thorough consideration of public opinion before any final decision.
Significant Issues
One of the main concerns is the use of technical language and legal references that may be difficult for the general public to understand. Terms like "Electronic Fund Transfer Act" and specific legal citations might require more accessible explanations to ensure comprehension. Additionally, the document estimates a substantial 3,361,056 hours as the total annual respondent burden. This figure is notably high, and without an explanation of how this number was determined, it may raise questions about the calculation's accuracy. The estimated number of respondents (600,000) also prompts questions about their selection criteria and how the burden is distributed among them.
Moreover, the invitation for comments identifies general areas but lacks specific criteria or guidelines for evaluating contributions, which might lead to inconsistent handling of public feedback. Clear guidelines can enhance transparency and trust in the process. Finally, the contact details for inquiries make it explicit not to send comments to specific email addresses, which might confuse those seeking a direct point of contact for feedback.
Impact on the Public
For the general public, understanding their rights concerning electronic fund transfers is crucial. This document could have a widespread impact by improving the information consumers receive about these services, ensuring that they are well-informed about their rights and responsibilities. However, the technical nature of the document might limit accessibility, thereby reducing public engagement.
Impact on Specific Stakeholders
Businesses and financial institutions that provide electronic fund transfer services might be most directly affected by this notice. They are responsible for ensuring compliance with Regulation E's disclosure requirements. Extending the information collection could mean these entities have to continue, or possibly increase, their efforts in monitoring and reporting information to the CFPB, potentially increasing their administrative workload.
On the other hand, these businesses might benefit from clearer and more effective regulations that enhance consumer trust in electronic fund transfer services. If the CFPB adjusts the requirements based on public feedback, it could lead to more streamlined and efficient regulatory compliance processes, easing the burden on these stakeholders.
In conclusion, while the CFPB's effort to gather public comments on the information collection extension is a positive step towards regulatory transparency and effectiveness, the challenges surrounding technical jargon and the lack of detailed guidance need addressing to maximize public participation and fair assessment of feedback.
Issues
• The document uses technical terms such as 'Electronic Fund Transfer Act (EFTA)' and 'Regulation E' without layman's explanations, which may not be easily understood by the general public.
• The estimated total annual burden hours (3,361,056) seem very high, and it is unclear how these estimates were calculated. More transparency on the calculation methodology would be helpful.
• There is a lack of detail regarding who the 600,000 respondents are and how they are selected, which might lead to unclear understanding of the burden distribution.
• The abstract includes references to specific legal references such as '15 U.S.C. 1693 et seq.' without explaining what these entail, which may be confusing to those not familiar with legal citations.
• The section on 'Request for Comments' lists several points of invitation for comments, but does not provide any criteria or guidelines for evaluating the comments, which could lead to inconsistency in handling feedback.
• The contact information provided for further inquiries specifies not to submit comments to the email addresses, which may be confusing for the readers looking for a direct contact for their comments.