What is the Electronic Funds Transfer Act?

The Electronic Funds Transfer Act (EFTA) is a federal law that was enacted in 1978. It is intended to protect consumers when it comes to electronic fund transfers. This act regulates the rights, liabilities, and responsibilities of people who use electronic funds transfer (EFT) systems when transferring funds from one account to another. Under the EFTA, financial institutions must provide consumers with information about how the EFT system works and how to access their accounts. The financial institution must also provide a disclosure statement spelling out all of the fees associated with the EFT system. The EFTA also has consumer protections in place. Under the EFTA, consumers are given certain rights including the right to stop payment on certain transfers, the right to receive a refund if an unauthorized transfer is made, and the right to dispute a transfer if they believe it is incorrect. In Georgia, the EFTA is enforced by the Georgia Department of Banking and Finance. The Department of Banking and Finance oversees the regulations and ensures that consumers are getting the protection they are entitled to under the EFTA.

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What is the Electronic Funds Transfer Act?

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