Electronic Fund Transfer Act & Reg E

Question 1

The primary purpose of the Electronic Fund Transfer Act and Regulation E is to
a. protects consumers against unauthorized and erroneous electronic funds transfers (EFTs)
b. encourages consumers to use and rely on electronic payment systems, EFTs and access devices.
c. both a. and b.

Answer 1

C - But more a than b

Question 2

T or F
Telephone transfers are considered electronic fund transfers (EFTs) under Regulation E

Answer 2

True

Question 3

Reg E requires that the initial disclosures to be given to a member when?

Answer 3

when she/he contracts for an EFT service

Question 4

T or F
The Regulation E initial disclosures must include the location of the credit union’s ATMs.

Answer 4

False

Question 5

T or F
A receipt for a transaction completed at an electronic terminal must disclose the account balance after the transaction.

Answer 5

False

Question 6

T or F
The receipt must disclose the date, terminal location and a number that IDs the member.

Answer 6

True

Question 7

T or F
If a surcharge will be imposed on nonmembers for using an ATM operated by your credit uinon, the only notice requirement is to post that fee on the transaction receiept.

Answer 7

False

Question 8

Must the surchage fee notice be given before the deposit.

Answer 8

Yes - on a screen, sign or envelope.

Question 9

How many days does a consumer have from the receipt of the periodic statement to notify an institution of an EFT error.

Answer 9

60 days

Question 10

T or F
No resolution 10 days after error notification? You must provisionally recredit the member’s account

Answer 10

True

Question 11

T or F
A financial institution can require consumers to notify it of EFT errors in writing.

Answer 11

False

Question 12

T or F
A financial institution can require consumers to confirm all notices of EFT errors in writing.

Answer 12

True

Question 13

T or F
An access device is an “accepted device” when 1. the member requests and receives a debit card, or 2. the member calls the credit union to validate an unsolicited debit card, or 3. the member receives a replacement debit card for a broken original card.

Answer 13

True
Cash deposits at the drive thru, check deposits at ATMS and transactions with the tellers are not access devices.

Question 14

T or F
The primary purpose of the Regulation E initial disclosures is to summerize the member’s liability for unauthorized electronic transfers

Answer 14

True

Question 15

T or F
The Regulation E initial disclosures must also explain the types of electronic services offered, the member’s right to stop preauthorized payments, and the credit union’s business days.

Answer 15

True

Question 16

How many possible tiers of liability that consumers may be responsible for when unauthorized EFTs are debited against their accounts at a financial institution.

Answer 16

3 tiers (50, 500 and unlimited.

Question 17

T or F
If a consumer has a debit card and write her or his PIN on the debit card and the card is subsequently stolen and unauthorized EFTs are made to the consumer’s account, the consumer’s negligence affects her or his liability for unauthorized EFTs.

Answer 17

False

Question 18

If a consumer notifies her or his financial institution within two business days after learning of the loss or theft of her or his debit card, her or his liability for unauthorized EFTs is?

Answer 18

$50.00

Question 19

If a consumer notifies her or his financial institution after two business days after learning of the loss or theft of her or his debit card, her or his liability for unauthorized EFTs is?

Answer 19

$500.00

Question 20

If a consumer notifies her or his financial institution of unauthorized EFT debits made to the consumer’s account (that occurred without an access device) that appear on her or his statement within 60 days of the transmittal of the statement, her or his liability for the unauthorized EFTs is

Answer 20

$0.00

Question 21

If a consumer notifies her or his financial institution of unauthorized EFT debits made to the consumer’s account (that occurred without an access device) that appear on her or his statement 60 days of the transmittal of the statement, her or his liability for the unauthorized EFTs that occur after that 60 days period is?

Answer 21

Unlimited

Question 22

T or F
Under Regulation E a non-beneficial change in terms (such as increased or new fees) required 21 days advance notice to your members.

Answer 22

True

Question 23

T or F
Regulation CC and TISA require 30 days advance notice for non-beneficial changes in terms to members.

Answer 23

True

Question 24

T or F
Before Reg E disclosures can be provided to members electronically, a credit union must receive affirmative consent from a member to receive electronic disclosures, inform the member of her rights regarding electronic disclosures, and provide details to the member on the hardware and software requirements for receiving electronic disclsoures.

Answer 24

True - This is Esign

Question 25

T or F
Under Federal Law (EFTA and Regulation E) before your credit union can charge a fee for paying overdrafts on ATM and one-time debit card transactions, it must first obtain the member’s consent (opt-in) to the overdraft fee.

Answer 25

True