Electronic Funds Transfer Act & Reg E

Question 1

The primary purpose of the Electronic Fund Transfer Act & Reg E is to?

Answer 1

Protect consumers against unauthorized and erroneous electronic fund transfers (EFTs)

Question 2

T or F: Telephone transfers are considered electronic fund transfers under reg E?

Answer 2

True

Question 3

T or F: The reg E initial disclosures must include the location of the credit union’s ATMs?

Answer 3

False

Question 4

T or F: Reg E requires that the initial disclosures be given to a member when they contract for an EFT service?

Answer 4

True

Question 5

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

Answer 5

False

Question 6

What information is required on the receipt of a transaction done at an electronic terminal?

Answer 6

1. Amount of transfer
2. Date of transfer
3. Type of transfer and account types involved
4. Number or code that identifies the member, member’s account, or the access device used to make the transfer
5. Location of the terminal
6. The name of any third party funds are transferred to or from

Question 7

T or F: If a surcharge will be imposed on nonmembers for using an ATM operated by your CU, the only notice requirement is to post that fee on the transaction receipt?

Answer 7

False. The notice must be given before, on a screen, sign, or envelope.

Question 8

T or F: There is no requirement under REg E for a FI to send a periodic statement to a consumer if no EFT has been debited or credited to the consumer’s account?

Answer 8

False, if no EFT has occurred, a statement must be sent out at least quarterly.

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

The CU must provisionally recredit an account after how many days of error notification?

Answer 10

By the end of 10 business days.

Question 11

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

Answer 11

False, but they can require consumers to confirm all notices of EFT errors in writing.

Question 12

What are the 3 ways an access device becomes an accepted device?

Answer 12

1. The member requests and receives a debit card
2. The member calls the CU to validate an unsolicited debit card
3. or the member receives a replacement card for an existing card.

Question 13

T or F: The primary purpose of the Reg E initial disclosures is to summarize the member’s liability for unauthorized EFTs?

Answer 13

True

Question 14

T or F: If a consumer writes their PIN on their debit card, and the card is stolen and unauthorized EFTs are made to the account, the consumer’s negligence affects their liability for unauthorized EFTs?

Answer 14

False

Question 15

If a consumer notifies their FI WITHIN two business days after learning of the loss or theft of their debit card, what is their liability for unauthorized EFTs?

Answer 15

$50

Question 16

If a consumer notifies their FI AFTER two business days after learning of the loss or theft of their debit card, what is their liability for unauthorized EFTs?

Answer 16

$500

Question 17

If a consumer notifies their FI within 60 days of the transmittal of their statement, what is their liability of unauthorized EFT debits made to their account that occurred without an access device?

Answer 17

$0

Question 18

Under Reg E, when must members be notified of non-beneficial changes in terms? (such as new or increased fees)

Answer 18

21 days in advance of the change

Question 19

T or F: Before Reg E disclosures can be provided to members electronically, a CU must receive affirmative consent from a member to receive electronic disclosures, inform the member of their rights regarding electronic disclosures, and provide details to the member on the hardware & software requirements for receiving electronic disclosures?

Answer 19

True

Question 20

T or F: Under EFTA & Reg E, before the CU can charge a fee for paying overdrafts on ATM and one-time debits, it must first obtain the member’s opt in to the overdraft fee?

Answer 20

True