Section 1005.14 - Electronic fund transfer service provider not holding consumer's account(a)Provider of electronic fund transfer service. A person that provides an electronic fund transfer service to a consumer but that does not hold the consumer's account is subject to all requirements of this part if the person: (1) Issues a debit card (or other access device) that the consumer can use to access the consumer's account held by a financial institution; and(2) Has no agreement with the account-holding institution regarding such access.(b)Compliance by service provider. In addition to the requirements generally applicable under this part, the service provider shall comply with the following special rules:(1)Disclosures and documentation. The service provider shall give the disclosures and documentation required by §§ 1005.7 , 1005.8 , and 1005.9 of this part that are within the purview of its relationship with the consumer. The service provider need not furnish the periodic statement required by § 1005.9(b) if the following conditions are met: (i) The debit card (or other access device) issued to the consumer bears the service provider's name and an address or telephone number for making inquiries or giving notice of error;(ii) The consumer receives a notice concerning use of the debit card that is substantially similar to the notice contained in appendix A of this part;(iii) The consumer receives, on or with the receipts required by § 1005.9(a) , the address and telephone number to be used for an inquiry, to give notice of an error, or to report the loss or theft of the debit card;(iv) The service provider transmits to the account-holding institution the information specified in § 1005.9(b)(1) , in the format prescribed by the automated clearinghouse (ACH) system used to clear the fund transfers;(v) The service provider extends the time period for notice of loss or theft of a debit card, set forth in § 1005.6(b)(1) and (2) , from two business days to four business days after the consumer learns of the loss or theft; and extends the time periods for reporting unauthorized transfers or errors, set forth in §§ 1005.6(b)(3) and 1005.11(b)(1)(i) , from 60 days to 90 days following the transmittal of a periodic statement by the account-holding institution.(2)Error resolution.(i) The service provider shall extend by a reasonable time the period in which notice of an error must be received, specified in § 1005.11(b)(1)(i) , if a delay resulted from an initial attempt by the consumer to notify the account-holding institution.(ii) The service provider shall disclose to the consumer the date on which it initiates a transfer to effect a provisional credit in accordance with § 1005.11(c)(2)(ii) .(iii) If the service provider determines an error occurred, it shall transfer funds to or from the consumer's account, in the appropriate amount and within the applicable time period, in accordance with § 1005.11(c)(2)(i) .(iv) If funds were provisionally credited and the service provider determines no error occurred, it may reverse the credit. The service provider shall notify the account-holding institution of the period during which the account-holding institution must honor debits to the account in accordance with § 1005.11(d)(2)(ii) . If an overdraft results, the service provider shall promptly reimburse the account-holding institution in the amount of the overdraft.(c)Compliance by account-holding institution. The account-holding institution need not comply with the requirements of the Act and this part with respect to electronic fund transfers initiated through the service provider except as follows: (1)Documentation. The account-holding institution shall provide a periodic statement that describes each electronic fund transfer initiated by the consumer with the access device issued by the service provider. The account-holding institution has no liability for the failure to comply with this requirement if the service provider did not provide the necessary information; and(2)Error resolution. Upon request, the account-holding institution shall provide information or copies of documents needed by the service provider to investigate errors or to furnish copies of documents to the consumer. The account-holding institution shall also honor debits to the account in accordance with § 1005.11(d)(2)(ii) .