What is the Electronic Funds Transfer Act?
The Electronic Funds Transfer Act (EFTA) is a federal law designed to protect consumers when they use electronic means of transferring money. This law applies to all states including Delaware. The EFTA helps guarantee that consumers are able to access their money when they use electronic means such as ATMs, online banking, and other electronic communications. When consumers use electronic means of transferring money, the EFTA protects them by requiring financial institutions to follow certain procedures and to provide certain consumer protections. For example, financial institutions must let customers know in writing the terms and conditions of each electronic transaction before the transaction is completed. Financial institutions must also give customers the right to stop payment on a transfer that has been requested but not completed, or to cancel any preauthorized transfer that is scheduled to be made on a certain date. The EFTA also requires financial institutions to investigate any claim of unauthorized transfers made from a customer’s account. If the financial institution determines that an unauthorized transfer occurred, the customer must be reimbursed for any losses incurred as a result of the unauthorized transfer. The EFTA is an important law that provides protection to consumers when they use electronic means to transfer money. It helps ensure that consumers have access to their money and that unauthorized transfers are investigated and reimbursed if necessary.
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