Understanding Electronic Funds Transfer Communication and Notice Requirements
Question
Electronic funds transfers' requirements say that transfers that vary in amount must be communicated to the designated payee within _______________ before the scheduled transfer or may give the consumer the option of receiving notice only when a transfer falls outside a specified range of amounts.
Answers
Explanations
Click on the arrows to vote for the correct answer
A. B. C. D.A
Under the Electronic Funds Transfer Act (EFTA) and Regulation E, financial institutions must comply with certain requirements related to electronic fund transfers (EFTs), including those made through automated teller machines (ATMs), point-of-sale (POS) terminals, and online banking systems. One such requirement is the obligation to provide advance notice of transfers that vary in amount.
Specifically, under Regulation E Section 1005.10(c), a financial institution must provide notice to the consumer at least 10 days before the scheduled date of a transfer that varies in amount from the previous transfer(s) to or from the same account, unless the consumer has agreed to receive notice only when a transfer falls outside a specified range of amounts. In this case, the financial institution must provide notice of the first transfer that falls outside the agreed-upon range.
Therefore, the correct answer to the question is A. 10 days.
