What is the Electronic Funds Transfer Act?
The Electronic Funds Transfer Act (EFTA) is a federal law that regulates electronic money transfers in the United States. This law applies to automated teller machines (ATMs), debit cards, direct deposits, and other electronic payments. The EFTA requires financial institutions to provide customers with disclosures and information regarding their rights and liability when conducting electronic transactions. In Delaware, the EFTA applies to banks, credit unions, financial companies, and other entities that provide electronic funds transfers. It provides consumers with protections to guard against unauthorized or fraudulent activity with their electronic transfers. Examples of such protections include the right to dispute errors or unauthorized transactions, and to receive timely notification of the same. The EFTA also provides consumers with certain rights relating to the use of electronic access devices, such as ATMs and debit cards. For example, consumers can obtain information on the terms and conditions of a debit card, the fees associated with its use, and how to dispute fraudulent activity. In addition, the EFTA imposes certain responsibilities on those offering electronic funds transfers. This includes providing accurate information about charge fees and liability limits, as well as providing notice of any changes to the terms of the account. The EFTA is intended to ensure that consumers are afforded greater protection when using electronic funds transfer services. It provides an important safety net when engaging in e-commerce activities, such as making online purchases.
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