What is the Electronic Funds Transfer Act?
The Electronic Funds Transfer Act (EFTA) is a federal law in the United States that regulates electronic payments, including credit card payments. It was enacted in 1978 to protect consumers from fraud and unauthorized transactions. In Indiana, it is enforced by the Indiana Department of Financial Institutions. The EFTA protects consumers from errors, unauthorized payments, and fraud when they use electronic banking services such as debit and prepaid cards, ATMs, and telephone banking. It also specifies the rights of consumers and establishes disclosure requirements for financial institutions. The EFTA requires financial institutions to provide customers with information about their rights and the services the institution offers. The EFTA also requires financial institutions to provide customers with an annual statement of the fees they have paid for their electronic funds transfer service. It ensures that consumers are aware of any fees or charges that are associated with their account and that the financial institution is not charging them for services they did not request. The EFTA also provides consumers with protection if their credit cards are lost or stolen. It requires financial institutions to limit the amount of money that can be lost or stolen from a consumer’s account and to investigate and resolve fraud or unauthorized transactions. In short, the Electronic Funds Transfer Act is a federal law that helps protect consumers who use electronic banking and credit card services. It outlines the rights of consumers who use electronic banking services and establishes disclosure requirements for financial institutions.
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