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Payroll Cards

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Payroll cards will have better federal protection next year. The Federal Reserve Board last week approved a new final rule that provides for “Regulation E” coverage to payroll account cards. The new rule also gives financial institutions more options in providing account transaction information to payroll card users. Under the new rule, institutions are not required to provide paper periodic statements to consumers if the institution makes account transaction information available by telephone, electronically, and, upon the consumer’s request, in writing. The updated “Reg E” does not apply to any general purpose prepaid card, gift card or health benefits card. The new rule goes into effect on July 1, 2007. For more information visit: “http://www.federalreserve.gov”:http://www.federalreserve.gov/boarddocs/press/bcreg/2006/20060824/attachment.pdf

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