Electronic Fund Transfer Act

Rule/Law:

15 U.S.C. §§ 1693-1693r, as amended

This statute (Title IX of the Consumer Credit Protection Act) establishes the rights, liabilities, and responsibilities of participants in electronic fund transfer systems. The Act requires financial institutions to adopt certain practices respecting such matters as transaction accounting, and error resolution, requires financial institutions and others to have certain procedures for preauthorized transfers, and sets liability limits for losses caused by unauthorized transfers. The Credit CARD Act and the Dodd-Frank Act (see below) made substantial amendments to this Act.