Topic: Electronic Fund Transfer Act (EFTA)
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We do Fedline Advantage for wires that go out of and come in to the bank. For how long do we have to retain documentation of the wires?
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We recommend that you retain documentation of Fedline transfers for five years. The BSA regulations require you to retain documentation of any funds transmittals of $3,000 or more for five years. 31 CFR 1010.410(f)
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If we want to start automatically sending customers with multiple accounts combined account statements, rather than separate statements for each account, must we provide those customers with notice of the change?
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We are not aware of any laws or regulations that would require a notice to customers when converting to combined account statements. Needless to say, you should be sensitive to a number of related issues, such as the accounts being owned by exactly the same customer or customers, and that statements for each of the…
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Do you have a listing of what disclosures banks are required to have on the outside of an ATM?
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Regulation E (at 12 CFR 1005.16(b)) a disclosure that “a fee will be imposed for providing electronic fund transfer services or a balance inquiry,” with the amount of the fee. This disclosure must appear on the ATM screen or on paper, but the rule no longer requires a physical placard on the ATM itself. The…
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A customer gave his debit card and PIN to his girlfriend. We had erroneously linked the debit card to the customer’s savings account, but he had asked that it be linked only to his checking account. His girlfriend used the card to steal money from the customer’s savings account. Will we be liable for the loss?
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Although the transaction you describe might be considered an authorized transaction, it is not likely that you can hold the customer liable because he did not request or validate the link to his savings account. Because the transaction involved a transfer from a savings account made with a debit card, Regulation E governs the customer’s…
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If we offer checking accounts that do not have overdraft protection, can we still require customers to opt-in to overdraft fees (due to the risk that some debit card force-pay transactions can still result in overdrafts)? Can we revise the Regulation E opt-in notice to reflect that the account will not have overdraft protection, except in those forced-pay transactions?
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After reviewing the Electronic Fund Transfer Act (EFTA) and Regulation E, which apply to overdraft programs dealing with electronic fund transfers (EFTs)), and discussing with attorneys at the OCC and the Federal Reserve Board, we do not believe it would be possible to draft an opt-in notice that would comply with Regulation E. Regulation E…