Consumer Notification Requirements
Question
To stop a payment of a preauthorized transfer, consumer must notify the institution or in writing at least:
Answers
Explanations
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A. B. C. D.A
The correct answer to this question is D. None of these.
The Consumer Financial Protection Bureau's (CFPB) Regulation E sets forth the requirements for preauthorized electronic fund transfers, including procedures for stopping such transfers.
According to Regulation E, a consumer may stop payment of a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer. If the institution requires written confirmation of the oral notification, the consumer must provide it within 14 days.
However, if the consumer provides written notice of an unauthorized transfer within two business days after learning of the transfer, the financial institution must immediately investigate and, if appropriate, refund the amount of the transfer.
Therefore, the correct answer to the question is D, none of these, because none of the options provided accurately reflect the requirements for stopping preauthorized transfers under Regulation E.
