Error in EFT

D

The term EFT stands for Electronic Fund Transfer. EFT is a type of transaction where funds are electronically transferred from one account to another. Examples of EFTs include direct deposit of paychecks, automated teller machine (ATM) withdrawals, and point-of-sale (POS) transactions using a debit card.

An error in an EFT can occur for various reasons, and it can have different consequences for the parties involved. The Consumer Financial Protection Bureau (CFPB) has established specific rules to protect consumers from EFT errors and to ensure that they have a reasonable opportunity to resolve them.

The answer to the question is D. All of the listed options are considered EFT errors that are regulated by the Electronic Fund Transfer Act (EFTA) and the CFPB's Regulation E.

Unauthorized EFTs (Option A) are transactions initiated by someone other than the account holder or without their consent. For example, if someone steals a consumer's debit card and withdraws funds from their account, it is an unauthorized EFT.

The omission from a periodic statement of an EFT that should have been included (Option B) occurs when a financial institution fails to include an EFT transaction that the consumer made or authorized in the periodic statement they send. This can make it challenging for consumers to reconcile their accounts and detect unauthorized transactions.

A consumer's request for documentation required to be given on receipts or statements or for clarification of information (Option C) refers to the consumer's right to receive a receipt or statement after every EFT and to request additional information about a transaction if needed. This information can include the date, amount, and location of the transaction, among other things.

If any of these errors occur, the financial institution is responsible for investigating the issue and correcting it promptly. The consumer also has the right to dispute the error and request a refund or correction of their account balance.

It is essential for financial institutions to have adequate procedures in place to prevent EFT errors and to resolve them efficiently and effectively when they do occur. This helps to ensure consumer trust in the financial system and promote a healthy financial marketplace.