What is the Electronic Funds Transfer Act?
The Electronic Funds Transfer Act is a federal law that was passed by the United States Congress in 1978. The law applies to all electronic transactions involving the transfer of funds, such as those used with ATMs and debit cards. This Act establishes the legal rights, liabilities, and responsibilities of all parties involved in an electronic funds transfer. In North Carolina, the Electronic Funds Transfer Act ensures that individuals have the right to dispute any charges that were not authorized. Additionally, the law requires banks to provide consumer protection when they use an electronic fund transfer. This includes providing consumers with their rights to dispute charges, reimburse unauthorized charges, and receive a refund of any charges that were wrongfully taken. The Electronic Funds Transfer Act also requires banks to provide customers with certain disclosures, such as the terms and conditions of the transaction, any fees that may be associated with the transaction, and other information that the customer needs to know in order to understand the transaction. Banks are also required to provide customers with a copy of the receipt for the transaction. Overall, this law is intended to protect customers and ensure they understand their rights and responsibilities when engaging in electronic funds transfers in North Carolina. It also ensures that banks provide adequate disclosure and protect consumers from wrongful charges and fees.
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