The Reg E Reader

On March 25, President Trump signed an Executive Order requiring federal agencies to stop issuing paper checks for most disbursements by September 30. Exec. Order No. 14,247, 90 Fed. Reg. 14001 (Mar. 25, 2025). To combat what the Executive Order describes as the “risks of fraud, lost payments, thefts, and inefficiencies” associated with paper checks, all executive departments and agencies will be required to transition to electronic funds transfer (EFT) methods, such as direct deposit or credit card payments. This move will bring the vast majority of federal disbursements under Reg E’s purview, as Reg E governs most EFTs initiated to or from a consumer’s personal accounts.

On December 12, 2024, the Consumer Financial Protection Bureau issued a final rule amending Regulation E to prohibit large financial institutions from conditioning overdraft credit services on repayment through preauthorized electronic funds transfers.

Regulation E (Reg E), the implementing regulation of the Electronic Fund Transfer Act, establishes the basic rights, liabilities, and responsibilities of consumers who use electronic funds transfers and remittance transfer services, and of the financial institutions or others that offer these services.