The CFPB is seeking public input on its proposed extension of Regulation E under the Electronic Fund Transfer Act (EFTA), a move that could have significant implications for credit unions and their compliance operations.
In a notice expected to be published in the Federal Register on June 2, the CFPB outlined its intent to maintain oversight of electronic fund transfers (EFTs), including services that credit unions regularly provide, such as ATM withdrawals, direct deposits, debit card transactions and prepaid accounts. The Bureau estimated that roughly 600,000 entities, including many credit unions, are subject to Regulation E and collectively face an annual compliance burden of 3.36 million hours.
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For credit unions, especially smaller institutions, the resource demands tied to Regulation E can be substantial. The regulation requires institutions to offer clear disclosures, maintain detailed error resolution processes and limit member liability for unauthorized transactions, critical protections that also come with administrative strain.
Credit unions offering remittance transfers or prepaid accounts must additionally comply with disclosure and fee transparency requirements. Those with overdraft credit features tied to prepaid accounts face further obligations under Regulation E’s expanded provisions.
The CFPB is requesting public comment on whether the ongoing data collection is necessary, the accuracy of current burden estimates and potential ways to reduce compliance costs. The comment period will last 30 days following publication in the Federal Register.
As credit unions navigate increasing regulatory demands while trying to meet evolving member expectations, the CFPB’s review of Regulation E offers a timely opportunity to weigh in on the operational realities of compliance.
Stakeholder input could shape how Regulation E evolves, potentially easing pressure on financial institutions striving to deliver secure and transparent electronic services.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
