Electronic Fund Transfer Consumer Protection Act

Summary

Electronic Fund Transfer Consumer Protection Act - Amends the Consumer Credit Protection Act to add the following title: Title VIII: Electronic Fund Transfers. Prohibits any financial institution from engaging in any transaction with a customer by means of an electronic terminal without first clearly disclosing to the customer all terms and conditions governing such transfer. States that such disclosure shall include: the consumer's liability for unauthorized electronic fund transfers (EFT); the types of transfers the consumer may make; any applicable charges; the consumer's right to reverse a transfer; the financial institution's liability for improper transfer; and the consumer's right to receive electronic fund transfer receipts and account statements. Requires a financial institution to give the customer 60 days notice prior to changing any of the terms of the agreement. States that the consumer must receive a receipt for each transfer affecting the consumer's account no later than five days after the transfer. Requires financial institutions to provide consumers with a periodic statement for each EFT account. States that receipts and statements required by this Act are to constitute presumptive proof of an EFT payment to a third party. Allows the making of preauthorized transfers only by written authorization from the consumer which shall be revocable at will at any time up to the business day preceding the scheduled transfer and which must be renewed after 180 days. Permits a consumer to reverse a transfer to a third party only upon oral or written notice to the financial institution within three days of the transfer. Sets forth a procedure for the resolution of errors which calls for prompt investigation of errors and reply to the consumer. States that if the financial institution discovers an error it must correct it within 24 hours and if it maintains that no error has occurred, it must provide written documentation supporting its determination within three business days after its report. States that if a court finds that a financial institution willfully reported to a consumer that his account was correct when such a conclusion could not reasonably, be drawn, such institution is liable for treble damages. Limits a consumer's liability (in the event of an unauthorized cash transfer) to the lesser of $25 or the amount of money obtained. Holds a financial institution strictly liable to a consumer for any improper or incorrect transfer, the failure to make a transfer when properly instructed, and for the failure to reverse a transfer. Makes exceptions to such rule in the case of an improper or incorrect transfer if the error was caused by a technical malfunction beyond the control of the institution. Permits a financial institution to issue EFT debit cards or account access codes only in response to an application or in renewal of an existing accepted card. Suspends the consumer's obligation to make payment when a technical malfunction prevents the transfer of funds to a third party who has agreed to accept payment by means of an EFT. Prohibits the conditioning of employment, government benefits, or the extension of credit on the consumer's use of EFT's. Exempts $1500 of any account in which a consumer deposits his wages by means of EFT from attachment, garnishment, or other process. Imposes a fiduciary duty on financial institutions which effect electronic fund transfers to establish systems which are secure, accurate, and confidential. Requires a financial institution to notify a consumer in the event of a legal action against the consumer's account. Restricts the disclosure of information regarding EFT's. Prohibits any agreement which would deprive a consumer of any right granted under this Act. Sets forth the formula for the determination of civil liability. States that any person who willfully and knowingly gives false or inaccurate information, fails to provide information which is required to be disclosed, or otherwise fails to comply with any provision of this title shall be fined not more than $5,000 or imprisoned not more than a year, or both. Places the enforcement of this title in the case of national banks, Federal Reserve member banks, insured banks, Federal savings and loan associations, and Federal credit unions with their respective regulatory agencies. Directs the Federal Trade Commission to enforce the requirements of this title in all other cases. Permits the Board of Governors of the Federal Reserve System to exempt classes of practices involving electronic fund transfer with any State from the requirements of this title if the Board determines that the State's regulations are similar to those of this title. Directs the Board and the Attorney General to make reports to Congress concerning the administration of their functions under this title.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in Senate

  summary · EN · 7 September 1977

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.