The Electronic Fund Transfer Act was passed by the U.S. Congress in 1978 and signed by President Jimmy Carter, to establish the rights and liabilities of consumers as well as the responsibilities of all participants in electronic funds transfer activities.[1]
Electronic Fund Transfer Act
Other short titles
Financial Institutions Regulatory and Interest Rate Control Act of 1978
Change in Bank Control Act
Change in Savings and Loan Control Act
Depository Institution Management Interlocks Act
Export-Import Bank Act Amendments
Federal Financial Institutions Examination Council Act
National Credit Union Central Liquidity Facility Act
Right to Financial Privacy Act
Long title
An Act to extend the authority for the flexible regulation of interest rates on deposits and accounts in depository institutions.
The EFT Act recognizes the right of consumers to choose the financial institution to which their payments are directed[2]
The EFT Act also prohibits a creditor or lender from requiring a consumer to repay a loan or other credit by electronic fund transfer, except when there is an overdraft on checking plans.[3]
Financial institution liabilityedit
The financial institution must give the customer notice of his liability in case the card is lost or stolen. This notice must include a phone number for reporting card loss and a description of the financial institution's error resolution process.[2]
Limit to customer liability on loss or her of cardedit
If a customer promptly reports a missing or stolen card to the financial institution before any unauthorized transactions occur, the cardholder will not be held responsible for subsequent transactions.
A customer can be liable for unauthorized withdrawals if their card is lost or stolen and they do not follow certain criteria:
Loss is limited to $50 if the institution is notified within two business days
Loss could be up to $500 if the institution is notified between 3 and 59 days
If the loss is not reported within 60 business days customer risks unlimited loss on transfers made after the 60-day period – could lose all money in the account plus maximum overdraft if any.[2]
EFT errorsedit
EFT is not a perfect system; therefore customers should still be diligent in reviewing their EFT statements for possible errors as they would with any other type of transaction. Should a customer notice that there has been an error in an electronic fund transfer relating to their account certain steps must be taken:
Under the Act, the customer must:
Write or call the financial institution immediately if possible
Must be no later than 60 days from the date of the erroneous statement
Give their name and account number
Explain why they believe there is an error, the type, dollar amount and date
May be required to send details of the error in writing within 10 business days[2]
Under the Act, the financial institution must:
Promptly investigate the error and resolve it within 45 days
Errors involving new accounts (opened last 30 days), POS transactions, and foreign transactions may take up to 90 days
If it takes more than 10 business days to complete the investigation:
Must recredit the amount in question
For new accounts may take up to 20 business days to recredit the account
Must notify the customer of the results of the investigation:
If there was an error – correct it or make recredit final
If no error – explanation in writing, notify the customer of deducted recredit
Customer has the right to ask for copies of any documents relied on in the investigation[2]
What the EFT Act Coversedit
The EFT Act does not apply to every type of pre-authorized plan. The EFT Act does not apply to automatic transfers from any account held in the name of the institution the consumer uses to the account the consumer uses.
An example of this would be where the EFT Act would not apply to any automatic payments put towards a mortgage held by the financial institution where a consumer would hold their electronic fund's account.
The EFT Act also does not apply to automatic transfers between a consumer's accounts at the same financial institution
The EFT Act also does not cover all transfers. Some banks, other financial institutions, and vendors will produce cards with a cash value imprinted into the card itself
Examples of these include public transit passes, store gift cards, and prepaid telephone cards. These cards may not be covered by the EFT Act.
When using electronic funds transfer, the Act does not give the consumer the right to stop payment.
State law or any contract that imposes a lower liability limit than those mentioned in the “Loss or Theft: Customer Liability” will be preempted (overridden) by the federal EFT Act unless the state law provides protections that are greater than that provided under Federal law. (See Section 919 of the Act).
^ abcde. Consumer Handbook to Credit Protection Laws. US Federal Reserve. Archived from the original on August 30, 2009. Retrieved 2009-09-01.
^. Consumer Information. Archived from the original on 2006-06-16. Retrieved 2006-06-27.
Further readingedit
Regulation E at www.bankersonline.com
Regulation E at FDIC
W., C. H. (Oct 1983). "Overcoming the obstacles to implementation of point-of-sale electronic fund transfer systems: EFTA and the new uniform payments code". Virginia Law Review. 69 (7): 1351–1379. doi:10.2307/1072866. JSTOR 1072866.
Brown, Tom; Plache, Lacey (Winter 2006). "Paying with plastic: maybe not so crazy". The University of Chicago Law Review. 73 (1): 63–86. JSTOR 4495544.
January 01, 1970
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This article s tone or style may not reflect the encyclopedic tone used on Wikipedia See Wikipedia s guide to writing better articles for suggestions May 2010 Learn how and when to remove this message The Electronic Fund Transfer Act was passed by the U S Congress in 1978 and signed by President Jimmy Carter to establish the rights and liabilities of consumers as well as the responsibilities of all participants in electronic funds transfer activities 1 Electronic Fund Transfer ActOther short titlesFinancial Institutions Regulatory and Interest Rate Control Act of 1978Change in Bank Control ActChange in Savings and Loan Control ActDepository Institution Management Interlocks ActExport Import Bank Act AmendmentsFederal Financial Institutions Examination Council ActNational Credit Union Central Liquidity Facility ActRight to Financial Privacy ActLong titleAn Act to extend the authority for the flexible regulation of interest rates on deposits and accounts in depository institutions NicknamesAmerican Arts Gold Medallion ActEnacted bythe 95th United States CongressEffectiveNovember 10 1978CitationsPublic law95 630Statutes at Large92 Stat 3641 aka 92 Stat 3728CodificationTitles amended12 U S C Banks and Banking15 U S C Commerce and TradeU S C sections amended12 U S C ch 3 226 et seq 15 U S C ch 41 1601 et seq 15 U S C ch 41 1693 et seq Legislative historyIntroduced in the House as H R 14279 by Fernand St Germain D RI on October 10 1978Committee consideration by House Banking Finance and Urban Affairs Senate Banking Housing and Urban AffairsPassed the House on October 11 1978 passed Passed the Senate on October 12 1978 passed with amendmentHouse agreed to Senate amendment on October 14 1978 341 32 in lieu of H Res 1439 with further amendmentSenate agreed to House amendment on October 14 1978 agreed Signed into law by President Jimmy Carter on November 10 1978Major amendmentsCredit CARD Act of 2009 The act s provisions were implemented through Federal Reserve Board Regulation E Contents 1 Rights of consumers 2 Financial institution liability 3 Limit to customer liability on loss or her of card 4 EFT errors 5 What the EFT Act Covers 6 See also 7 References 8 Further readingRights of consumers editThe EFT Act recognizes the right of consumers to choose the financial institution to which their payments are directed 2 The EFT Act also prohibits a creditor or lender from requiring a consumer to repay a loan or other credit by electronic fund transfer except when there is an overdraft on checking plans 3 Financial institution liability editThe financial institution must give the customer notice of his liability in case the card is lost or stolen This notice must include a phone number for reporting card loss and a description of the financial institution s error resolution process 2 Limit to customer liability on loss or her of card editIf a customer promptly reports a missing or stolen card to the financial institution before any unauthorized transactions occur the cardholder will not be held responsible for subsequent transactions A customer can be liable for unauthorized withdrawals if their card is lost or stolen and they do not follow certain criteria Loss is limited to 50 if the institution is notified within two business days Loss could be up to 500 if the institution is notified between 3 and 59 days If the loss is not reported within 60 business days customer risks unlimited loss on transfers made after the 60 day period could lose all money in the account plus maximum overdraft if any 2 EFT errors editEFT is not a perfect system therefore customers should still be diligent in reviewing their EFT statements for possible errors as they would with any other type of transaction Should a customer notice that there has been an error in an electronic fund transfer relating to their account certain steps must be taken Under the Act the customer must Write or call the financial institution immediately if possible Must be no later than 60 days from the date of the erroneous statement Give their name and account number Explain why they believe there is an error the type dollar amount and date May be required to send details of the error in writing within 10 business days 2 Under the Act the financial institution must Promptly investigate the error and resolve it within 45 days Errors involving new accounts opened last 30 days POS transactions and foreign transactions may take up to 90 days If it takes more than 10 business days to complete the investigation Must recredit the amount in question For new accounts may take up to 20 business days to recredit the account Must notify the customer of the results of the investigation If there was an error correct it or make recredit final If no error explanation in writing notify the customer of deducted recredit Customer has the right to ask for copies of any documents relied on in the investigation 2 What the EFT Act Covers editThe EFT Act does not apply to every type of pre authorized plan The EFT Act does not apply to automatic transfers from any account held in the name of the institution the consumer uses to the account the consumer uses An example of this would be where the EFT Act would not apply to any automatic payments put towards a mortgage held by the financial institution where a consumer would hold their electronic fund s account The EFT Act also does not apply to automatic transfers between a consumer s accounts at the same financial institution The EFT Act also does not cover all transfers Some banks other financial institutions and vendors will produce cards with a cash value imprinted into the card itself Examples of these include public transit passes store gift cards and prepaid telephone cards These cards may not be covered by the EFT Act When using electronic funds transfer the Act does not give the consumer the right to stop payment State law or any contract that imposes a lower liability limit than those mentioned in the Loss or Theft Customer Liability will be preempted overridden by the federal EFT Act unless the state law provides protections that are greater than that provided under Federal law See Section 919 of the Act See also editElectronic funds transferReferences edit Search results www google com better source needed a b c d e Electronic Fund Transfers Consumer Handbook to Credit Protection Laws US Federal Reserve Archived from the original on August 30 2009 Retrieved 2009 09 01 Consumer Information Consumer Information Archived from the original on 2006 06 16 Retrieved 2006 06 27 Further reading editThe Federal Reserve Board 2001 Consumer Handbook to Credit Protection Laws Electronic Fund Transfers Retrieved June 26 2006 Regulation E at www bankersonline com Regulation E at FDIC W C H Oct 1983 Overcoming the obstacles to implementation of point of sale electronic fund transfer systems EFTA and the new uniform payments code Virginia Law Review 69 7 1351 1379 doi 10 2307 1072866 JSTOR 1072866 Brown Tom Plache Lacey Winter 2006 Paying with plastic maybe not so crazy The University of Chicago Law Review 73 1 63 86 JSTOR 4495544 Retrieved from https en wikipedia org w index php title Electronic Fund Transfer Act amp oldid 1211396723, wikipedia, wiki, book, books, library,
