15 U.S.C. § 1693c — Terms and conditions of transfers

Page 1648 TITLE 15—COMMERCE AND TRADE § 1693c 1 So in original. Probably should be ‘‘that’’. ‘‘(ii) otherwise superseding the application of any State or local law. ‘‘(D) ELECTRONIC BENEFIT TRANSFER PROGRAM DE- FINED.—For purposes of this paragraph, the term ‘electronic benefit transfer program’— ‘‘(i) means a program under which a government agency distributes needs-tested benefits by estab- lishing accounts to be accessed by recipients elec- tronically, such as through automated teller ma- chines, or point-of-sale terminals; and ‘‘(ii) does not include employment-related pay- ments, including salaries and pension, retirement, or unemployment benefits established by Federal, State, or local governments.’’ Pub. L. 104–193, § 891, designated existing provisions as par. (1), inserted subsec. heading and par. (2), and sub- stituted ‘‘If’’ for ‘‘In the event that’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by section 1073(a)(2) of Pub. L. 111–203 ef- fective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking. Amendment by section 1084(1), (3) of Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employ- ees. § 1693c. Terms and conditions of transfers (a) Disclosures; time; form; contents The terms and conditions of electronic fund transfers involving a consumer’s account shall be disclosed at the time the consumer contracts for an electronic fund transfer service, in ac- cordance with regulations of the Bureau. Such disclosures shall be in readily understandable language and shall include, to the extent appli- cable— (1) the consumer’s liability for unauthorized electronic fund transfers and, at the financial institution’s option, notice of the advisability of prompt reporting of any loss, theft, or unau- thorized use of a card, code, or other means of access; (2) the telephone number and address of the person or office to be notified in the event the consumer believes than 1 an unauthorized elec- tronic fund transfer has been or may be ef- fected; (3) the type and nature of electronic fund transfers which the consumer may initiate, in- cluding any limitations on the frequency or dollar amount of such transfers, except that the details of such limitations need not be dis- closed if their confidentiality is necessary to maintain the security of an electronic fund transfer system, as determined by the Bureau; (4) any charges for electronic fund transfers or for the right to make such transfers; (5) the consumer’s right to stop payment of a preauthorized electronic fund transfer and the procedure to initiate such a stop payment order; (6) the consumer’s right to receive docu- mentation of electronic fund transfers under section 1693d of this title; (7) a summary, in a form prescribed by regu- lations of the Bureau, of the error resolution provisions of section 1693f of this title and the consumer’s rights thereunder. The financial institution shall thereafter transmit such summary at least once per calendar year; (8) the financial institution’s liability to the consumer under section 1693h of this title; (9) under what circumstances the financial institution will in the ordinary course of busi- ness disclose information concerning the con- sumer’s account to third persons; and (10) a notice to the consumer that a fee may be imposed by— (A) an automated teller machine operator (as defined in section 1693b(d)(3)(D)(i) of this title) if the consumer initiates a transfer from an automated teller machine that is not operated by the person issuing the card or other means of access; and (B) any national, regional, or local net- work utilized to effect the transaction. (b) Notification of changes to consumer A financial institution shall notify a consumer in writing at least twenty-one days prior to the effective date of any change in any term or con- dition of the consumer’s account required to be disclosed under subsection (a) if such change would result in greater cost or liability for such consumer or decreased access to the consumer’s account. A financial institution may, however, implement a change in the terms or conditions of an account without prior notice when such change is immediately necessary to maintain or restore the security of an electronic fund trans- fer system or a consumer’s account. Subject to subsection (a)(3), the Bureau shall require subse- quent notification if such a change is made per- manent. (c) Time for disclosures respecting accounts ac- cessible prior to effective date of this sub- chapter For any account of a consumer made acces- sible to electronic fund transfers prior to the ef- fective date of this subchapter, the information required to be disclosed to the consumer under subsection (a) shall be disclosed not later than the earlier of— (1) the first periodic statement required by section 1693d(c) of this title after the effective date of this subchapter; or (2) thirty days after the effective date of this subchapter. (Pub. L. 90–321, title IX, § 905, as added Pub. L. 95–630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3730; amended Pub. L. 106–102, title VII, § 703, Nov. 12, 1999, 113 Stat. 1464; Pub. L. 111–203, title X, § 1084(1), July 21, 2010, 124 Stat. 2081.) Editorial Notes REFERENCES IN TEXT For effective date of this subchapter, referred to in subsec. (c), see section 921 of Pub. L. 90–321, set out as an Effective Date note under section 1693 of this title. AMENDMENTS 2010—Subsecs. (a), (b). Pub. L. 111–203 substituted ‘‘Bureau’’ for ‘‘Board’’ wherever appearing. 1999—Subsec. (a)(10). Pub. L. 106–102 added par. (10). Page 1649 TITLE 15—COMMERCE AND TRADE § 1693e Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. § 1693d. Documentation of transfers (a) Availability of written documentation to con- sumer; contents For each electronic fund transfer initiated by a consumer from an electronic terminal, the fi- nancial institution holding such consumer’s ac- count shall, directly or indirectly, at the time the transfer is initiated, make available to the consumer written documentation of such trans- fer. The documentation shall clearly set forth to the extent applicable— (1) the amount involved and date the trans- fer is initiated; (2) the type of transfer; (3) the identity of the consumer’s account with the financial institution from which or to which funds are transferred; (4) the identity of any third party to whom or from whom funds are transferred; and (5) the location or identification of the elec- tronic terminal involved. (b) Notice of credit to consumer For a consumer’s account which is scheduled to be credited by a preauthorized electronic fund transfer from the same payor at least once in each successive sixty-day period, except where the payor provides positive notice of the trans- fer to the consumer, the financial institution shall elect to provide promptly either positive notice to the consumer when the credit is made as scheduled, or negative notice to the consumer when the credit is not made as scheduled, in ac- cordance with regulations of the Bureau. The means of notice elected shall be disclosed to the consumer in accordance with section 1693c of this title. (c) Periodic statement; contents A financial institution shall provide each con- sumer with a periodic statement for each ac- count of such consumer that may be accessed by means of an electronic fund transfer. Except as provided in subsections (d) and (e), such state- ment shall be provided at least monthly for each monthly or shorter cycle in which an electronic fund transfer affecting the account has oc- curred, or every three months, whichever is more frequent. The statement, which may in- clude information regarding transactions other than electronic fund transfers, shall clearly set forth— (1) with regard to each electronic fund trans- fer during the period, the information de- scribed in subsection (a), which may be pro- vided on an accompanying document; (2) the amount of any fee or charge assessed by the financial institution during the period for electronic fund transfers or for account maintenance; (3) the balances in the consumer’s account at the beginning of the period and at the close of the period; and (4) the address and telephone number to be used by the financial institution for the pur- pose of receiving any statement inquiry or no- tice of account error from the consumer. Such address and telephone number shall be pre- ceded by the caption ‘‘Direct Inquiries To:’’ or other similar language indicating that the ad- dress and number are to be used for such in- quiries or notices. (d) Consumer passbook accounts In the case of a consumer’s passbook account which may not be accessed by electronic fund transfers other than preauthorized electronic fund transfers crediting the account, a financial institution may, in lieu of complying with the requirements of subsection (c), upon presen- tation of the passbook provide the consumer in writing with the amount and date of each such transfer involving the account since the pass- book was last presented. (e) Accounts other than passbook accounts In the case of a consumer’s account, other than a passbook account, which may not be accessed by electronic fund transfers other than preauthorized electronic fund transfers crediting the account, the financial institution may pro- vide a periodic statement on a quarterly basis which otherwise complies with the requirements of subsection (c). (f) Documentation as evidence In any action involving a consumer, any docu- mentation required by this section to be given to the consumer which indicates that an elec- tronic fund transfer was made to another person shall be admissible as evidence of such transfer and shall constitute prima facie proof that such transfer was made. (Pub. L. 90–321, title IX, § 906, as added Pub. L. 95–630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3731; amended Pub. L. 111–203, title X, § 1084(1), July 21, 2010, 124 Stat. 2081.) Editorial Notes AMENDMENTS 2010—Subsec. (b). Pub. L. 111–203 substituted ‘‘Bu- reau’’ for ‘‘Board’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. § 1693e. Preauthorized transfers (a) A preauthorized electronic fund transfer from a consumer’s account may be authorized by the consumer only in writing, and a copy of such authorization shall be provided to the con- sumer when made. A consumer may stop pay- ment of a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at any time up to three business days preceding the scheduled date of such transfer. The financial institution may require written confirmation to be provided to it within four- teen days of an oral notification if, when the oral notification is made, the consumer is ad- vised of such requirement and the address to which such confirmation should be sent.