What is the Electronic Funds Transfer Act?

The Electronic Funds Transfer Act (EFTA) is a federal law in the United States that protects consumers when using electronic funds transfers (EFTs). This includes transactions such as Automatic Teller Machine (ATM) withdrawals, direct deposits, and debit card transfers. The EFTA was enacted in 1978 and is implemented in South Carolina through the South Carolina Department of Consumer Affairs (SCDCA). The main purpose of the EFTA is to ensure the security of customer’s private financial information and to guarantee timely and accurate transactions. The EFTA contains several sections that outline specific regulations and rights for consumers. These regulations include consumer disclosure of terms and fees, methods of resolving errors, and clearing times for all types of EFTs. The EFTA also establishes specific rules on overdrafts. This includes notifying the customer if the account has become overdrawn, how the customer can make a correction to the account, and preventing banks from routinely charging multiple overdraft fees. The EFTA offers consumers important protections when conducting transactions or using services provided by banks. If a consumer feels an EFT has been mishandled, he or she can file a complaint with the SCDCA. The SCDCA will conduct an investigation into the matter and work to resolve it as quickly as possible.

Related FAQs

What is the National Bankruptcy Reform Act?
What is the Debt Collection Improvement Act?
What is the Truth in Savings Act?
What is the purpose of the Uniform Commercial Code?
What is the Truth in Lending Act?
What are the regulations surrounding banking?
What is the Home Owners’ Loan Act?
What is the Fair Lending Act?
What is the Fair Credit Reporting Act?
What is the Bankruptcy Reform Act?

What is the Electronic Funds Transfer Act?

Related FAQs

Related Blog Posts