What is the Electronic Fund Transfer Act?

The Electronic Fund Transfer Act (EFTA) is a federal law that regulates the rights and responsibilities of consumers and financial institutions when it comes to electronic fund transfers. This includes credit card transactions, debit and ATM card transactions, direct deposits and preauthorized transfers. The purpose of this act is to ensure that consumers are protected from unfair or deceptive practices by financial institutions when it comes to electronic fund transfers. The EFTA requires financial institutions to inform consumers of the terms and conditions associated with electronic fund transfers. This includes providing information about monthly fees, interest rates, restrictions, and transaction fees, as well as notification of any changes made to the terms and conditions of the transfer. The EFTA also provides consumers with certain rights when it comes to disputed transactions and unauthorized transfers. Consumers have the right to dispute a transaction, and the financial institution must investigate the disputes and provide the consumer with a written explanation or resolution within 45 days of the dispute. In North Carolina, the EFTA is enforced by the Consumer Financial Protection Bureau and the North Carolina Attorney General’s office. These entities investigate complaints made to them and can take action if there are violations of the EFTA such as fraudulent or deceptive practices, or failure to follow the guidelines set out by the act.

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What is the Electronic Fund Transfer Act?

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