A: No. UIGEA regulations don’t provide model language for the required disclosure. The credit union would simply need to draft language to inform members with business accounts that UIGEA prohibits unlawful Internet gambling transactions and they shouldn’t be processed through the member’s account. A credit union may provide the notification through a term in the account agreement, a notice sent to the member, or through some other method.
Q: When is the credit union required to provide a change-in-terms notice under Regulation E?
A: Reg E (Electronic Fund Transfers) requires credit unions to provide prior notice if the change would result in increased fees or charges, increased liability for the member, fewer types of available electronic fund transfers, or stricter limits on the frequency or dollar amounts of transfers. The credit union must provide a written change-in-terms notice at least 21 days before the changes become effective. It doesn’t have to be sent in a separate mailing, and it can be an electronic notice so long as the credit union complies with federal ESIGN statute.
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