Topic: Electronic Fund Transfer Act (EFTA)
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Do Regulation E’s error resolution procedures apply to ACH transactions? If so, do we need to start sending a letter to the customer after we conclude an investigation and credit the customer’s account?
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Yes, Regulation E's error resolution procedures do apply to ACH transactions. However, if you determine that an error occurred, Regulation E does not require you to send an actual letter to inform the customer after concluding an investigation and crediting the customer's account. Regulation E's error resolution procedures are triggered whenever a consumer gives notice…
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If we provided Regulation E disclosures to a customer who did not obtain a debit card at account opening, and the customer signs up for a debit card a year later, do we need to redisclose under Regulation E?
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Yes, we believe that you must provide new Regulation E disclosures in this situation, because your bank is issuing the debit card a year after the account was opened and the initial disclosures were provided. Regulation E does permit financial institutions to provide early disclosures covering all of its EFT services, even for customers who…
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If we believe the customer initiated a false debit card dispute (based on information provided to us by the police), can we offset the customer’s deposit account to recover the final credit we provided under Regulation E? The debit card has no credit or overdraft features.
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We believe that you may set off the customer’s deposit account in the amount of the credit that you provided to the customer under Regulation E. While Regulation Z places some limits on the right of offset for credit cards, those limitations do not apply to debit cards that lack any credit or overdraft features.…
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Are we required to provide customers with a copy of the wire confirmation receipt that we receive after an outgoing wire is sent through Fedwire?
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We are not aware of any law or rule that would require you to provide a copy of the actual wire confirmation. You should, of course, check your account agreements, which may require you to provide the receipt or some other notification for outgoing wires. Regulation J, which governs funds transfers through FedWire, does not impose…
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We are going to start providing debit cards for our business customers. How should we change the Regulation E disclosures regarding unauthorized transactions for these customers?
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Whether your disclosures for business debit cards should include Regulation E language depends on whether your bank is extending Regulation E’s protections to your business customers. Since Regulation E applies only to consumer accounts held for personal, family, or household purposes, you are not required to provide its protections to business customers. See 12 CFR…