What is the Electronic Fund Transfer Act?

The Electronic Fund Transfer Act (EFTA) is a federal law that was passed in 1978 to protect consumers when they use electronic forms of payment such as credit cards and debit cards. The EFTA enables consumers to dispute transactions with their financial institution if they feel they have been wronged, and it also requires banks and other financial institutions to disclose the terms and conditions of their services to consumers. The EFTA applies to any consumer credit card transaction and covers the electronic transfer of funds. It prevents companies from charging customers hidden fees or expenses, and it requires that companies provide clear information about fees and charges to consumers before any transaction takes place. In addition, the EFTA also provides protections to consumers who need to dispute a transaction. Specifically, the act establishes procedures for consumers to follow if they believe a transaction was wrongfully charged to their account. This includes the right to receive a full refund of the amount in question, along with any applicable fees, if the dispute is found to be valid. Finally, the EFTA also provides protection to consumers under the age of 18, as well as those who have disabilities and/or require special assistance in order to use electronic forms of payments. It also prohibits financial institutions from discriminating against any consumer because of their age, race, or religion when it comes to providing access to electronic payment rights and services.

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What is the Electronic Fund Transfer Act?

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