§1693i — Title 15 Commerce and Trade | U.S. Code

Summary

Banks and companies must not give a consumer a card, code, or other way to access their account for making electronic transfers unless the consumer asked for it, or it is a renewal or replacement of an accepted access device (whether from the original issuer or a successor). An unsolicited device may be sent only if it is not activated; it comes with the full disclosure of the consumer’s rights and liabilities under section 1693c; it includes a clear explanation that it is not activated and how to get rid of it if activation is not wanted; and it can be activated only when the consumer asks and their identity is verified. "Validated" means it can be used to make an electronic transfer.

Title 15, §1693i

Commerce and Trade — Source: USLM XML via OLRC

(a)No person may issue to a consumer any card, code, or other means of access to such consumer’s account for the purpose of initiating an electronic fund transfer other than—

(1)in response to a request or application therefor; or

(2)as a renewal of, or in substitution for, an accepted card, code, or other means of access, whether issued by the initial issuer or a successor.

(b)Notwithstanding the provisions of subsection (a), a person may distribute to a consumer on an unsolicited basis a card, code, or other means of access for use in initiating an electronic fund transfer from such consumer’s account, if—

(1)such card, code, or other means of access is not validated;

(2)such distribution is accompanied by a complete disclosure, in accordance with section 1693c of this title, of the consumer’s rights and liabilities which will apply if such card, code, or other means of access is validated;

(3)such distribution is accompanied by a clear explanation, in accordance with regulations of the Bureau, that such card, code, or other means of access is not validated and how the consumer may dispose of such code, card, or other means of access if validation is not desired; and

(4)such card, code, or other means of access is validated only in response to a request or application from the consumer, upon verification of the consumer’s identity.

(c)For the purpose of subsection (b), a card, code, or other means of access is validated when it may be used to initiate an electronic fund transfer.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsec. (b)(3). Pub. L. 111–203 substituted “Bureau” for “Board”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

§1693i Issuance of cards or other means of access