What is the Electronic Funds Transfer Act?

The Electronic Funds Transfer Act (EFTA) is a federal law that protects consumers when making electronic payments or transfers of funds. It was established in 1978 to provide safeguards for consumers engaging in these types of transactions. In Kansas, the EFTA requires banks and other companies that provide financial services to consumers to disclose their rights and responsibilities concerning electronic funds transfers, as well as any applicable fees or charges. This is usually done through a written disclosure notice. The EFTA also provides consumers with certain protections in the case of errors or unauthorized transactions, including the right to receive a refund for any incorrect or unauthorized transfers. The EFTA also requires businesses to keep records of all electronic funds transfers for at least five years. This information is then used to investigate any potential fraudulent or illegal activity. Finally, the EFTA protects consumers against any undisclosed fees or charges associated with electronic funds transfers. Banks and other companies are prohibited from charging any additional fees unless they have been disclosed in the written disclosure notice.

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