EFTA - Electronic Funds Transfer Act for payday lenders

What is an Access Device?

A card, code, or other means of access to a consumer's account or a combination of these used by the consumer to initiate EFTs

What is an EFT - Electronic fund transfer?

A transfer of funds initiated through an electronic terminal, telephone or computer. It includes POS (point of sale) transfers, ATM transfers, direct deposits or withdrawals of funds and debit card transactions.

What does ACH mean?

Automated Clearing House

Are EFTs and Debit Card transactions the same thing?

Both are cashless transfers, but they are different. An EFT transfers funds. A Debit Card transaction only transfers funds if the funds are available.

What are some examples of an access device?

Debit cards, PINs, telephone transfer and telephone bill payment codes

What is EFTA?

Electronic Fund Transfer Act. It is intended to protect consumers engaging in all forms of electronic fund transfers. The main point we need to remember is we cannot REQUIRE a consumer to allow us to Debit, ACH or otherwise without consent.

Are ACH and EFT the same thing?

In a sense, yes. Both are transfers of funds from a checking account to a checking account or other entity. However, with ACH the Federal Reserve is the middle man. With EFT's the banks are the middlemen. ACH has no human intervention and are usually processed in batches. EFTs are completed by humans or tellers. ACHs take a few days. EFTs are instant.

What is not included in "access devices"?

Magnetic tape or other devices used internally by the bank to initiate electronic transfers -A check or draft used to capture the mICR encoding or routing, account, and serial numbers to initiate a one-time ACH debit

What about ECK - Elecrtronic Check Conversion?

That's Walmart. Not us. Why? because we hold the check and then use ACH. The customer has to be present with his check to authorize an ECK. We just don't do it.

Who governs EFTA?

The CFPB

Who is subject to EFTA?

We are. We do two things that fall under Regulation E - ACH and debit cards.

Can we ACH an installment loan?

We can, but only with express permission from the consumer. Such permission should be in writing and put in the customer's file.

Does the customer have to authorize an ACH action on a held check?

Yes, and does so when he signs our contracts.