Electronic Funds Transfer Act & Reg E Flashcards
The primary purpose of the Electronic Fund Transfer Act & Reg E is to?
Protect consumers against unauthorized and erroneous electronic fund transfers (EFTs)
T or F: Telephone transfers are considered electronic fund transfers under reg E?
True
T or F: The reg E initial disclosures must include the location of the credit union’s ATMs?
False
T or F: Reg E requires that the initial disclosures be given to a member when they contract for an EFT service?
True
T or F: A receipt for a transaction completed at an electronic terminal must disclose the account balance?
False
What information is required on the receipt of a transaction done at an electronic terminal?
- Amount of transfer
- Date of transfer
- Type of transfer and account types involved
- Number or code that identifies the member, member’s account, or the access device used to make the transfer
- Location of the terminal
- The name of any third party funds are transferred to or from
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?
False. The notice must be given before, on a screen, sign, or envelope.
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?
False, if no EFT has occurred, a statement must be sent out at least quarterly.
How many days does a consumer have from the receipt of the periodic statement to notify an institution of an EFT error?
60 days
The CU must provisionally recredit an account after how many days of error notification?
By the end of 10 business days.
T or F: A financial institution can require consumers to notify it of EFT errors in writing?
False, but they can require consumers to confirm all notices of EFT errors in writing.
What are the 3 ways an access device becomes an accepted device?
- The member requests and receives a debit card
- The member calls the CU to validate an unsolicited debit card
- or the member receives a replacement card for an existing card.
T or F: The primary purpose of the Reg E initial disclosures is to summarize the member’s liability for unauthorized EFTs?
True
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?
False
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?
$50
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?
$500
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?
$0
Under Reg E, when must members be notified of non-beneficial changes in terms? (such as new or increased fees)
21 days in advance of the change
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?
True
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?
True
