1. Agreements currently in force. Agreements submitted to the Bureau must contain the provisions of the agreement currently in force and information on fees. For example, on June 1, an issuer decides to reduce withdrawal fees for off-grid ATMs under any of the agreements it offers. The change to these fees will take effect on August 1. The issuer must submit and publish the amended withdrawal fee agreement for off-grid ATMs to the Agency no later than August 31 in accordance with section 1005.19(b)(2)(i) and (c). 2. Contracts sent to consumers. Paragraph 1005.19(d)(1)(ii) provides in part that if an issuer provides an agreement upon request, it must send the consumer a copy of the consumer`s prepaid account contract no later than five business days after receiving the consumer`s request. If the exhibitor sends the contract by post, the contract must be published in the post office five working days after receipt of the consumer`s request by the exhibitor. If the issuer delivers or makes available the contract electronically, the agreement must be delivered in person or electronically five working days after the issuer has received the consumer`s request. For example, if the exhibitor sends the contract by e-mail, the e-mail with the attached agreement must be sent no later than five working days after the exhibitor has received the consumer`s request. 1.
Relationship with other exceptions. The de minimis exception in section 1005.19(b)(4) differs from the product testing exception in section 1005.19(b)(5). The de minimis exception states that an issuer with fewer than 3,000 prepaid accounts open is not required to submit agreements to the Bureau, whether or not those agreements qualify for the product testing exception. In contrast, the product testing exception provides that an issuer is not required to submit to the Agency agreements offered only under certain types of prepaid account programs with fewer than 3,000 open accounts, regardless of the issuer`s total number of open accounts. Prepaid leases have a payment structure that represents the tenant who leases the asset for a much longer period. An advance payment of the rental amount is made. At the end of the lease, the lessor also has the option of acquiring the respective asset. 2. Prepaid account contracts that are not available to the public.
A prepaid account contract will not be offered to the public if the contract is offered to a consumer solely on the basis of the consumer`s relationship with a third party. Examples of agreements that are not available to the public include payroll account agreements, benefit accounts or prepaid accounts used to distribute student aid payments or property and casualty insurance benefits and other similar programs. Of course, they also tend to attract the attention of the IRS and financial journalists. In 2011, the New York Times published a front page in 2011 highlighting how Ronald Lauder, Estée Lauder`s cosmetic heir, “cleverly protected” his compensation through a prepaid variable futures contract. Since executive compensation is a multiple of the average level of employee compensation, these types of strategies are popular targets for auditing. (ii) Promptly provide the consumer with a copy of the consumer`s consent at the consumer`s request. If the issuer provides a contract on request, it must give the consumer the opportunity to request a copy of the contract by telephone. The issuer must provide the consumer with a copy of the consumer`s prepaid account contract no later than five working days after receipt of the consumer`s request. ii. On January 1, 2020, an amendment to the payroll agreement will come into effect, reflecting new functionality and the accompanying fees that the issuer has added to the program. The issuer is required to inform the Executive Committee by 31.
January 2020 to submit its entire revised agreement and an updated list of the names of the other parties involved in this agreement. (i) An issuer is not required to submit early repayment account agreements to the Bureau if it has fewer than 3,000 early repayment accounts open. If the issuer opened 3,000 or more prepaid accounts on the last day of the calendar quarter, it must submit its prepaid account contracts to the office no later than 30 days after the last day of that calendar quarter. i. Correction of typographical errors that do not affect the meaning of the contractual conditions. I. An issuer will initially submit a pay card agreement to the Bureau on May 1, 2019, along with a list of the names of the other parties involved (i.e., employers) to that agreement. On July 1, 2020, the issuer will add four new employers under the agreement. The Issuer is not required to submit a request to the Presidium for the inclusion of other relevant parties in this Agreement at this time.
3. Requirement for an integrated agreement. Issuers may not submit any provision of the agreement or fee information in the form of change notices or drivers. The only additions that may be submitted under an agreement are the optional fee information supplements described in § 1005.19(b)(6)(ii). Changes to fee provisions or information must be incorporated into the contract text or optional fee information addenda. For example, it would be ineligible for an issuer to submit an agreement in the form of a terms and conditions document to the Bureau on January 1 and then submit a notice of the term change to indicate the changes to the previously submitted agreement. Instead, the issuer must submit a document that incorporates the changes made by each of the notices of change into the body of the original document containing the terms and conditions and the optional addendum indicating the changes to the fee information. Iv.
However, if the issuer adds two new employers under the agreement on 1 March 2020 but does not make any other changes to the agreement, there will be new relevant parties to the agreement from 1 April that the issuer has not submitted to the Presidium. The issuer is required to submit to the Presidium, by 1 May 2020, an updated list of the names of the other parties concerned to this Agreement, reflecting the two employers it added in March. Since the issuer has not made any further changes to the agreement since it was filed in January, the issuer is not required to resubmit the agreement itself by May 1, 2020. (2) Changes. For the purposes of this Section, an issuer “amends” an agreement when it makes a material change (an “amendment”) to the agreement. A change is substantial if it modifies the rights or obligations of the issuer or consumer under the contract. Any changes to the fee information as defined in subsection (a)(3) of this section will be considered material. 1. The prerequisite is only for contracts offered to the public. An issuer is only required to publish and maintain on its publicly accessible website the prepaid account contracts it offers to the public within the meaning of § 1005.19 (a) (6) and must be submitted to the Presidium in accordance with § 1005.19 (b). In the case of agreements that are not offered to the public, the issuer is not obliged to publish and maintain the agreements on its publicly accessible website, but is obliged to grant each consumer access to his specific prepaid account contract in accordance with § 1005.19 (d).
This disclosure obligation differs from that of § 1005.7 as amended by § 1005.18(f)(1), which requires an issuer to make certain disclosures at the time a consumer performs an electronic money transfer service or before the first electronic funds transfer is made to the consumer`s account, and notice of the change in the conditions required by § 1005.8(a), as amended by Article 1005.18(f)(2). .