93 SMALL ENTITY COMPLIANCE GUIDE: PREPAID RULE 3.1
8.2 Alternative to periodic statements
A financial institution does not need to furnish periodic statements for a prepaid account if the
financial institution makes available or
provides (as applicable) all of the following:
1. Account balance information. The
financial institution must make a
consumer’s prepaid account balance
available through a readily available
telephone line. 12 CFR 1005.18(c)(1)(i).
For government benefit accounts, the
account balance must also be made
available at a terminal, such as by
providing balance information at a
balance inquiry terminal or providing it,
routinely or upon request, on a terminal
receipt. 12 CFR 1005.15(d)(1)(i).
2. Electronic account transaction
histories. A financial institution must
make available an electronic account
transaction history that covers at least 12
months preceding the date on which the
consumer electronically accesses the
prepaid account. 12 CFR
1005.18(c)(1)(ii). If a prepaid account has
been open for fewer than 12 months, the
financial institution need only provide the
electronic history for the period since the
time of account opening. If a prepaid
account is closed or becomes inactive, as
defined by the financial institution, the
financial institution does not need to make an electronic account transaction history
available for that prepaid account. However, if an inactive prepaid account becomes active,
the financial institution must again make available 12 months of electronic account
transaction history. Comment 1005.18(c)-4.
Regulation E requires that a financial
institution provide an annual error notice,
but allows an abbreviated error resolution
notice on each electronic and written account
transaction history as an alternative. The
abbreviated notice must be substantially
similar to the abbreviated notice for periodic
statements, paragraph (b) of Model Form A-
3, but modified to reflect the error resolution
procedures that apply when a financial
institution relies on the periodic statement
alternative. 12 CFR 1005.8(b); 1005.15(e)(2);
1005.18(d)(2). Section 9.2 provides more
information on these error resolution
procedures.
The periodic statement alternative requires
that an electronic account transaction history
covering at least 12 months be made
available to the consumer, such as through a
website. 12 CFR 1005.18(c)(1)(ii). If a
financial institution makes 12 months of
account transaction history available through
its website and also offers a mobile app
through which history is available, the mobile
app need not provide a full 12 months of
history.