15 U.S.C. § 1693a — Definitions

Page 1644 TITLE 15—COMMERCE AND TRADE § 1693 1 See References in Text note below. 2 So in original. There are two pars. designated ‘‘(4)’’ and no par. (3). institution holding such account without pro- viding notice to the person at the time the check was made, drawn, or delivered; (4) a check for partial payment of a debt where the payee had previously accepted par- tial payment for such debt; (5) a check issued by a person who was not competent, or was not of legal age, to enter into a legal contractual obligation at the time the check was made, drawn, or delivered; or (6) a check issued to pay an obligation aris- ing from a transaction that was illegal in the jurisdiction of the State or district attorney at the time the check was made, drawn, or de- livered. (c) Definitions For purposes of this section, the following definitions shall apply: (1) State or district attorney The term ‘‘State or district attorney’’ means the chief elected or appointed prosecuting at- torney in a district, county (as defined in sec- tion 2 of title 1), municipality, or comparable jurisdiction, including State attorneys general who act as chief elected or appointed pros- ecuting attorneys in a district, county (as so defined), municipality or comparable jurisdic- tion, who may be referred to by a variety of ti- tles such as district attorneys, prosecuting at- torneys, commonwealth’s attorneys, solici- tors, county attorneys, and state’s attorneys, and who are responsible for the prosecution of State crimes and violations of jurisdiction- specific local ordinances. (2) Check The term ‘‘check’’ has the same meaning as in section 5002(6) of title 12. (3) Bad check violation The term ‘‘bad check violation’’ means a violation of the applicable State criminal law relating to the writing of dishonored checks. (Pub. L. 90–321, title VIII, § 818, as added Pub. L. 109–351, title VIII, § 801(a)(2), Oct. 13, 2006, 120 Stat. 2004.) SUBCHAPTER VI—ELECTRONIC FUND TRANSFERS § 1693. Congressional findings and declaration of purpose (a) Rights and liabilities undefined The Congress finds that the use of electronic systems to transfer funds provides the potential for substantial benefits to consumers. However, due to the unique characteristics of such sys- tems, the application of existing consumer pro- tection legislation is unclear, leaving the rights and liabilities of consumers, financial institu- tions, and intermediaries in electronic fund transfers undefined. (b) Purposes It is the purpose of this subchapter to provide a basic framework establishing the rights, li- abilities, and responsibilities of participants in electronic fund and remittance transfer sys- tems. The primary objective of this subchapter, however, is the provision of individual consumer rights. (Pub. L. 90–321, title IX, § 902, as added Pub. L. 95–630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3728; amended Pub. L. 111–203, title X, § 1073(a)(1), July 21, 2010, 124 Stat. 2060.) Editorial Notes AMENDMENTS 2010—Subsec. (b). Pub. L. 111–203 inserted ‘‘and remit- tance’’ after ‘‘electronic fund’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 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. EFFECTIVE DATE Pub. L. 90–321, title IX, § 923, formerly § 921, as added by Pub. L. 95–630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3741, renumbered § 922, Pub. L. 111–24, title IV, § 401(1), May 22, 2009, 123 Stat. 1751; renumbered § 923, Pub. L. 111–203, title X, § 1073(a)(3), July 21, 2010, 124 Stat. 2060, provided that: ‘‘This title [enacting this subchapter] takes effect upon the expiration of eighteen months from the date of its enactment [Nov. 10, 1978], except that sections 909 and 911 [sections 1693g, 1693i of this title] take effect upon the expiration of ninety days after the date of enactment.’’ [Pub. L. 111–203, § 1073(a)(3), which directed renum- bering of section 922 of Pub. L. 90–321 as section 923 ef- fective 1 day after July 21, 2010, was executed after the renumbering of section 921 of Pub. L. 90–321 as section 922 by Pub. L. 111–24, § 401(1), effective 15 months after May 22, 2009, to reflect the probable intent of Congress.] SHORT TITLE This subchapter known as the ‘‘Electronic Fund Transfer Act’’, see Short Title note set out under sec- tion 1601 of this title. § 1693a. Definitions As used in this subchapter— (1) the term ‘‘accepted card or other means of access’’ means a card, code, or other means of access to a consumer’s account for the pur- pose of initiating electronic fund transfers when the person to whom such card or other means of access was issued has requested and received or has signed or has used, or author- ized another to use, such card or other means of access for the purpose of transferring money between accounts or obtaining money, property, labor, or services; (2) the term ‘‘account’’ means a demand de- posit, savings deposit, or other asset account (other than an occasional or incidental credit balance in an open end credit plan as defined in section 1602(i) 1 of this title), as described in regulations of the Bureau, established pri- marily for personal, family, or household pur- poses, but such term does not include an ac- count held by a financial institution pursuant to a bona fide trust agreement; (4) 2 the term ‘‘Board’’ means the Board of Governors of the Federal Reserve System; (4) 2 the term ‘‘Bureau’’ means the Bureau of Consumer Financial Protection; Page 1645 TITLE 15—COMMERCE AND TRADE § 1693b 3 So in original. The colon probably should be a semicolon. (5) the term ‘‘business day’’ means any day on which the offices of the consumer’s finan- cial institution involved in an electronic fund transfer are open to the public for carrying on substantially all of its business functions; (6) the term ‘‘consumer’’ means a natural person; (7) the term ‘‘electronic fund transfer’’ means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic in- strument, or computer or magnetic tape so as to order, instruct, or authorize a financial in- stitution to debit or credit an account. Such term includes, but is not limited to, point-of- sale transfers, automated teller machine transactions, direct deposits or withdrawals of funds, and transfers initiated by telephone. Such term does not include— (A) any check guarantee or authorization service which does not directly result in a debit or credit to a consumer’s account: 3 (B) any transfer of funds, other than those processed by automated clearinghouse, made by a financial institution on behalf of a con- sumer by means of a service that transfers funds held at either Federal Reserve banks or other depository institutions and which is not designed primarily to transfer funds on behalf of a consumer; (C) any transaction the primary purpose of which is the purchase or sale of securities or commodities through a broker-dealer reg- istered with or regulated by the Securities and Exchange Commission; (D) any automatic transfer from a savings account to a demand deposit account pursu- ant to an agreement between a consumer and a financial institution for the purpose of covering an overdraft or maintaining an agreed upon minimum balance in the con- sumer’s demand deposit account; or (E) any transfer of funds which is initiated by a telephone conversation between a con- sumer and an officer or employee of a finan- cial institution which is not pursuant to a prearranged plan and under which periodic or recurring transfers are not contemplated; as determined under regulations of the Bu- reau; (8) the term ‘‘electronic terminal’’ means an electronic device, other than a telephone oper- ated by a consumer, through which a con- sumer may initiate an electronic fund trans- fer. Such term includes, but is not limited to, point-of-sale terminals, automated teller ma- chines, and cash dispensing machines; (9) the term ‘‘financial institution’’ means a State or National bank, a State or Federal savings and loan association, a mutual savings bank, a State or Federal credit union, or any other person who, directly or indirectly, holds an account belonging to a consumer; (10) the term ‘‘preauthorized electronic fund transfer’’ means an electronic fund transfer authorized in advance to recur at substan- tially regular intervals; (11) the term ‘‘State’’ means any State, ter- ritory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any political subdivision of any of the foregoing; and (12) the term ‘‘unauthorized electronic fund transfer’’ means an electronic fund transfer from a consumer’s account initiated by a per- son other than the consumer without actual authority to initiate such transfer and from which the consumer receives no benefit, but the term does not include any electronic fund transfer (A) initiated by a person other than the consumer who was furnished with the card, code, or other means of access to such consumer’s account by such consumer, unless the consumer has notified the financial insti- tution involved that transfers by such other person are no longer authorized, (B) initiated with fraudulent intent by the consumer or any person acting in concert with the consumer, or (C) which constitutes an error committed by a financial institution. (Pub. L. 90–321, title IX, § 903, as added Pub. L. 95–630, title XX, § 2001, Nov. 10, 1978, 92 Stat. 3728; amended Pub. L. 111–203, title X, § 1084(1), (2), July 21, 2010, 124 Stat. 2081.) Editorial Notes REFERENCES IN TEXT Section 1602(i) of this title, referred to in par. (2), was redesignated section 1602(j) of this title by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107. AMENDMENTS 2010—Pub. L. 111–203, § 1084(1), which directed the sub- stitution of ‘‘Bureau’’ for ‘‘Board’’ wherever appearing, was executed by making the substitution in pars. (2) and (6) but not in par. (3), to reflect the probable intent of Congress. Par. (3). Pub. L. 111–203, § 1084(2)(A), redesignated par. (3) as (4) defining the term ‘‘Board’’. Par. (4). Pub. L. 111–203, § 1084(2)(B), which directed addition of par. (4) defining the term ‘‘Bureau’’ after par. (3), was executed by making the addition after par. (4) defining the term ‘‘Board’’, to reflect the probable intent of Congress. Pub. L. 111–203, § 1084(2)(A), redesignated par. (3) as (4) defining the term ‘‘Board’’. Former par. (4) redesig- nated (5). Pars. (5) to (12). Pub. L. 111–203, § 1084(2)(A), redesig- nated pars. (4) to (11) as (5) to (12), respectively. 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. § 1693b. Regulations (a) Prescription by the Bureau and the Board (1) In general Except as provided in paragraph (2), the Bu- reau shall prescribe rules to carry out the pur- poses of this subchapter. (2) Authority of the Board The Board shall have sole authority to pre- scribe rules— (A) to carry out the purposes of this sub- chapter with respect to a person described in section 5519(a) of title 12; and