Reg E Flashcards
What is an EFT?
Electronic Funds Transfer
- any transfer of funds that instructs a financial institution to debit or credit an account, other than that originated by check, draft, or paper instrument.
EFT transfers are generally initiated through:
an electronic terminal, telephone, computer, or magnetic tape.
T or F
Reg E covers business accounts?
FALSE
Reg E covers payments authorized by a consumer and initiated by using the consumer’s check if:
the check is used as a source of information for a one time EFT (however, checks are not considered access devices).
T or F
Reg E does not cover electronic check re-presentment when a check is returned.
TRUE
What is a preauthorized EFT?
a transfer that is authorized in advance to occur at substantially regular intervals
T or F
Wire transfers between banks or businesses sent through Fedwire or a similar wire transfer system are exempted from Reg E?
TRUE
Reg E exempts transfers under an agreement with the consumer to transfer funds between:
* accounts of the consumer
* the consumer and other members of their family
* from the institution to their consumer
* from the consumer to an account of the institution (so long as these transfers are within the same institution)
Reg E exempts telephone transfers that are:
* not recurring
* initiated by a telephone communication between the consumer and the financial institution
* not part of a bill payment plan
Reg E exempts trust accounts that are subject to:
a bona fide trust agreement.
Reg E exempts preauthorized transfers at institutions with _________ in assets on the preceding Dec 31.
$100 million
T or F
Institutions must provide required Reg E disclosures to all customers on the account.
FALSE
if multiple consumers, may provide only one set of disclosures
Reg E initial disclosures must be provided:
at the time a consumer contracts for an EFT service or before the first EFT is made.
Reg E initial disclosures must include a summary of _____________ for unauthorized transfers.
the consumer’s liability
Reg E initial disclosures must include the telephone number and address of:
the person or office to be notified in case of unauthorized transfers.
T or F
Reg E initial disclosures must include the institutions business days.
TRUE
Reg E initial disclosures must include the ____ of EFT the customers can make and ________.
* type
* any limitations or charges
Reg E initial disclosures must include a summary of the consumer’s right to:
* receive documentation, receipts, statements, and notices
* stop payment of preauthorized EFTs and procedures for stopping payments
T or F
Reg E initial disclosures must include an error resolution notice.
TRUE
Receipts at electronic terminals must be made available:
at the time an EFT transfer is made.
What must included on a receipt at electronic terminals?
* amount of the transfer and any charge for the transfer
* date
* type of transfer and type of account
* number or code identifying the consumer’s account or access device
* terminal location
* name of third party where transferred
It a transaction is _________ no receipt is required.
under $15
ATM operators that impose a fee for EFTs or balance inquiries must disclose:
the amount of the fee onscreen or on paper before the consumer becomes obligated to pay it.
ATM operators may only impose a fee if the required notices are provided and:
the consumer agrees to continue with the transaction.
Preauthorized transfers from a consumer’s account must be:
authorized in writing, signed, or similarly authenticated by the consumer.
Notice to the consumer is required when a consumer’s account is scheduled to be credited or debited by a preauthorized transfer from the _______ at least _______.
* same payer
* once every 60 days (if the payer provides positive notice to the consumer, a notice is not required by the institution)
Notice of preauthorized transfers must be provided:
* either orally or written
* within 2 business days after the transfer occurs or should have occurred
* or use alternative method
What is the alternative method of providing preauthorized transfer notice?
the institution may provide a readily available telephone number that the consumer may call to ascertain whether the transfer has occurred and disclose the number on the initial disclosure and on each periodic statement
Institutions must credit recurring preauthorized transfers:
as of the day they are received.
Transfers that vary in amount must be communicated to the designated payee within _____ before the scheduled transfer OR:
* 10
* give the consumer the option of receiving notice only when a transfer falls outside of a specified range