§1693c Terms and conditions of transfers

Summary

Banks and other financial institutions must give clear, easy-to-understand written terms when someone signs up for electronic fund transfer services. The notice must explain things like who pays if transfers happen without permission and the importance of reporting loss or theft quickly; the phone number and address to report suspected unauthorized transfers; what kinds of transfers the consumer can make and any limits on how often or how much (some security details can be kept secret); any fees for transfers; how to stop a preauthorized transfer; the right to get transfer records; a short summary (in a form set by the Bureau) of how to report and resolve errors, which must be sent at least once per calendar year; the institution’s legal liability under section 1693h; when the institution may share account information with others; and a notice that ATM operators or networks may charge a fee. If a disclosed term will make the consumer pay more or have less access, the institution must mail a written notice at least 21 days before the change takes effect. An immediate change can be made without prior notice if it is needed to protect security, but the Bureau will require later notice if that change becomes permanent, unless security concerns mean details must stay confidential. For accounts already able to use electronic transfers before this law began, the required information must be given by the earlier of the first periodic statement required by section 1693d(c) after the law takes effect or 30 days after the law takes effect.