Electronic Fund Transfer Act (EFTA) as enabled by Reg E

Foreign Remittance Rules

* CONSUMER initiated transactions (wires, ACH) sent to foreign destinations are covered. a. if a business initiates the transfer to a consumer, NOT covered. b. if a consumer initiates the transfer to a business, COVERED. * The Remittance Transfer Provider (bank, other intermediary) is responsible for compliance. * Foreign Language Disclosure: 1. if written, in English and in every other language primarily used by the Provider in advertisements or other communications. 2. if oral, in the language primarily used by the SENDER.

EFTA - Covered Transactions

1. ATM and debit card transactions. 2. Payments under a bill-payment system. 3. ACH debits and credits. 4. Pre-authorized transfers. 5. Checks that a merchant scans to create an ACH transaction.

Access Device Issuance

1. Activated devices (e.g., debit cards, etc.) should only be provided when the consumer requests either orally or in writing. 2. Unsolicited Access Devices may be mailed as long as they are not active when sent. * The customer must be notified of how to activate the device or how to dispose of.

Not Opting In - constraints

1. Cannot have conditions tied to opt-in (customers should not feel compelled to opt-in). 2. Bank can decline to cover ATM withdrawals or one-time debits if the account would be overdrawn. 3. Bank can choose to cover an overdraft, but CANNOT charge for doing so.

Gift Card Requirements

1. Gift cards may not charge dormancy fees unless: a. such fees have been clearly disclosed. b. no more than one dormancy fee per month. c. the card must have been dormant for 1 year. 2. Expiration dates cannot be less than 5 years from date card is issued.

Error Resolution - Bank's Responsibilities

1. Investigate timely. 2. Correct errors within 1 day of proof. 3. Give provisional credit if error is timely and correctly reported. a. if provisional credit will be reversed, provide notice of reversal (date and amount). b. if reversed, honor any third party transactions for 5 business days after notice of reversal.

Error Resolution - Customer Responsibilities

1. Notify the bank within 2 business days of learning of the loss or theft. OR 2. Notify the bank within 60 days of transmittal of a statement containing the error. 3. Bank may require written notice within 10 business days before providing provisional credit.

Reg E - Stop Payments

1. Stop payments may be oral or written. 2. They may be provided up to 3 business days preceding the scheduled transfer date. 3. Bank may require written confirmation of the stop payment within 14 days of oral notification. 4. Oral directive is invalid if written confirmation not received within 14 days.

Reg E - EFT Error defined

An EFT error is: 1. unauthorized transfer. 2. incorrect transfer to or from the account. 3. omission of an EFT from a statement. 4. computational or bookkeeping error. 5. incorrect amount dispensed from ATM. 6. EFT not properly identified. 7. consumer request for clarification.

Reg E - New Account

An account is new under Reg E for 30 days after the first deposit is made (even if the account holder is not a new customer).

Overdraft Protection Services - Opt-In requirements

For One-time debit card or ATM transactions, customers must affirmatively opt-in to overdraft coverage. 1. Provide the Opt-In Notice. 2. Provide a reasonable time to opt-in. 3. Obtain the opt-in decision. 4. Confirm the opt-in decision. 5. Inform the customer that opt-in can be revoked at any time.

Reg E - Initial Disclosure

Initial Disclosure Requirements: 1. Banks business days. 2. Consumer's right to EFT documentation. 3. Name, address and phone # for unauthorized transactions. 4. Error resolution notice and procedures (stop payments, etc.). 5. Circumstance under which consumer information will be shared with third parties. 6. Notice of possible ATM surcharges.

EFT - Customer Liability

Lost or stolen card: 1. Liability is capped at $50 if bank is notified within 2 business days of learning of the theft. 2. Liability is capped at $500 if bank is notified after 2 business days. a. the first two days' transactions are capped at $50. b. Days 3 and beyond are subject to an additional $450. c. Maximum liability is $500. Unauthorized Transfer: 1. Zero liability if bank is notified within 60 days of transmittal of customer statement. 2. Unlimited liability if bank is notified after 60 days. a. unlimited liability for all transactions through date of notification to bank. b. no liability for any transactions after notification.

Reg E - Change in Terms Notice

Must be furnished 21 days in advance of an event that has negative impact (increased fees, restrictions, etc.). Advance notice is waived if change is needed for security purposes.

Reg E - Error Resolution Notice

Must be furnished annually in long form, OR Monthly in short form.

Unauthorized Transaction

Only those transactions initiated by someone other than the account holder, and the account holder received no benefit from the transfer.

Reg E Required Disclosures

Reg E requires the following disclosures 1. Initial Disclosure. 2. Terminal Receipts. 3. Pre-authorized transfers. 4. Notice of Change in Terms. 5. Error Resolution Notice.

Reg E - Terminal Receipts

Terminal Receipts must include: 1. Transfer amount and charge (if any). 2. Date of transfer. 3. Type of transfer and account type. 4. Identifying code or number. 5. Terminal location. 6. Name of third party to or from whom funds were transferred.

Opt-In Notice Requirements

The Opt-in Notice must: 1. Be separate from other information. 2. Disclose which overdrafts will be assessed a fee. 3. Disclose standard overdraft practices. 4. Disclose the amount of the fee. 5. Disclose the maximum number of overdraft fees per day (if there is a maximum). 6. Disclose the right to opt-in. 7. Identify other overdraft protection services available.

Reg E - Periodic Statements

Timing: 1. Mailed monthly when there is activity. 2. MUST be mailed quarterly whether or not there is activity. Contents: 1. Date and amount of transfer. 2. type of transfer and account type. 3. third party name. 4. if ATM, location of the terminal. 5. Account numbers and fees. 6. Beginning and ending balance. 7. phone number and address for EFT confirmation or for unauthorized transactions.