What is the Electronic Funds Transfer Act?

The Electronic Funds Transfer Act (EFTA) is a federal law enacted in 1978. It protects consumer rights when using electronic funds transfer (EFT) services, which include online banking and ATM services. The Act was enacted to ensure that consumers are protected when using electronic funds transfer services and that consumers are informed about their rights and obligations under the law. In Oklahoma, the EFTA applies to all forms of electronic funds transfers including those involving electronic check conversion, pre-authorized transfers, and bank transit cards. The law provides consumers with certain protections, including the right to dispute errors on their account statements, the right to opt out of overdraft protection services, and the right to receive a written disclosure of the terms and conditions of the EFT service. The EFTA also requires financial institutions to provide certain safeguards. These include the development of written policies to increase the security of EFTs and the maintenance of records with accurate information on the transaction. Financial institutions are also required to provide consumers with clear and timely error resolution procedures. Overall, the Electronic Funds Transfer Act exists to protect consumers when using electronic funds transfer services, such as online banking and ATM services. It provides consumers with certain rights, including the right to dispute errors on their account statements, the right to opt out of overdraft protection services, and the right to receive written disclosure of the terms and conditions of the EFT service. Additionally, the EFTA also requires financial institutions to develop certain safeguards for the protection of EFTs.

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What is the Electronic Funds Transfer Act?

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