Which of the following primary purpose/s were behind the Electronic Fund Transfer Act (EFTA)?
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A. B. C. D.C
The Electronic Fund Transfer Act (EFTA) is a federal law that regulates electronic fund transfers (EFTs), such as ATM transactions, point-of-sale (POS) purchases, and online banking. It was enacted in 1978 and has been amended several times since then.
The primary purpose of the EFTA was to protect consumers who use electronic fund transfer systems. Specifically, it sought to accomplish the following goals:
To provide disclosures to consumers who use electronic fund transfer (EFT) systems: One of the key provisions of the EFTA is the requirement that financial institutions provide consumers with certain disclosures about their EFT services. These disclosures must include information about fees, transaction limits, and the consumer's rights and liabilities under the law. The purpose of these disclosures is to help consumers make informed decisions about their use of EFT services.
To provide consumers with limitations on liability for unauthorized electronic fund transfers: Another key provision of the EFTA is the limitation on consumer liability for unauthorized electronic fund transfers. Under the law, consumers are not liable for losses resulting from unauthorized transfers if they notify their financial institution within a certain time period after discovering the loss or theft of their access device (e.g., ATM card, PIN).
Therefore, the correct answer to the question is option C: Both A and B, as both provisions are primary purposes behind the Electronic Fund Transfer Act.