PRIA, Government Policy, Made Personal

Summary

Defines key words used in this part of the law. An "accepted card or other means of access" is a card, code, or other way to get into a person’s account that was issued to them or that they asked, signed for, used, or allowed someone else to use to move money or get goods or services. An "account" is a checking, savings, or similar asset account used mainly for personal, family, or household purposes (not an occasional credit balance in an open‑end credit plan as defined in section 1602(i), and not an account held under a bona fide trust). "Board" means the Board of Governors of the Federal Reserve. "Bureau" means the Bureau of Consumer Financial Protection. A "business day" is a day the consumer’s financial institution offices that handle an electronic transfer are open to the public. A "consumer" is a real person. An "electronic terminal" is an electronic device (not a consumer‑operated phone) like a point‑of‑sale terminal or ATM. A "financial institution" means banks, savings associations, credit unions, or any other person holding a consumer’s account. A "preauthorized electronic fund transfer" is one set up in advance to happen on a regular schedule. "State" includes states, territories, possessions, DC, Puerto Rico, and political subdivisions. An "electronic fund transfer" means moving money by electronic means (for example, POS, ATM, direct deposit or withdrawal, or transfers by phone or computer). It does not include certain services such as check‑guarantee services that don’t cause a debit or credit, some bank‑to‑bank transfers that are not processed by the automated clearinghouse, securities trades through registered brokers, agreed automatic transfers from savings to checking to cover overdrafts, or one‑time phone transfers that are not part of a prearranged plan. An "unauthorized electronic fund transfer" is a transfer made by someone other than the consumer without real authority and that gives the consumer no benefit, except when the consumer gave the other person the card or code (unless the consumer told the bank to stop those transfers), when the consumer or someone acting with the consumer acted with fraudulent intent, or when the transfer was an error by the financial institution.

Title 15, §1693a

Commerce and Trade, Source: USLM XML via OLRC

As used in this subchapter—

(1)the term “accepted card or other means of access” means a card, code, or other means of access to a consumer’s account for the purpose of initiating electronic fund transfers when the person to whom such card or other means of access was issued has requested and received or has signed or has used, or authorized another to use, such card or other means of access for the purpose of transferring money between accounts or obtaining money, property, labor, or services;

(2)the term “account” means a demand deposit, savings deposit, or other asset account (other than an occasional or incidental credit balance in an open end credit plan as defined in section 1602(i) of this title), as described in regulations of the Bureau, established primarily for personal, family, or household purposes, but such term does not include an account held by a financial institution pursuant to a bona fide trust agreement;

(4)the term “Board” means the Board of Governors of the Federal Reserve System;

(4)2 the term “Bureau” means the Bureau of Consumer Financial Protection;

(5)the term “business day” means any day on which the offices of the consumer’s financial institution involved in an electronic fund transfer are open to the public for carrying on substantially all of its business functions;

(6)the term “consumer” means a natural person;

(7)the term “electronic fund transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, direct deposits or withdrawals of funds, and transfers initiated by telephone. Such term does not include—

(A)any check guarantee or authorization service which does not directly result in a debit or credit to a consumer’s account:

(B)any transfer of funds, other than those processed by automated clearinghouse, made by a financial institution on behalf of a consumer by means of a service that transfers funds held at either Federal Reserve banks or other depository institutions and which is not designed primarily to transfer funds on behalf of a consumer;

(C)any transaction the primary purpose of which is the purchase or sale of securities or commodities through a broker-dealer registered with or regulated by the Securities and Exchange Commission;

(D)any automatic transfer from a savings account to a demand deposit account pursuant to an agreement between a consumer and a financial institution for the purpose of covering an overdraft or maintaining an agreed upon minimum balance in the consumer’s demand deposit account; or

(E)any transfer of funds which is initiated by a telephone conversation between a consumer and an officer or employee of a financial institution which is not pursuant to a prearranged plan and under which periodic or recurring transfers are not contemplated;

as determined under regulations of the Bureau;

(8)the term “electronic terminal” means an electronic device, other than a telephone operated by a consumer, through which a consumer may initiate an electronic fund transfer. Such term includes, but is not limited to, point-of-sale terminals, automated teller machines, and cash dispensing machines;

(9)the term “financial institution” means a State or National bank, a State or Federal savings and loan association, a mutual savings bank, a State or Federal credit union, or any other person who, directly or indirectly, holds an account belonging to a consumer;

(10)the term “preauthorized electronic fund transfer” means an electronic fund transfer authorized in advance to recur at substantially regular intervals;

(11)the term “State” means any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any political subdivision of any of the foregoing; and

(12)the term “unauthorized electronic fund transfer” means an electronic fund transfer from a consumer’s account initiated by a person other than the consumer without actual authority to initiate such transfer and from which the consumer receives no benefit, but the term does not include any electronic fund transfer (A) initiated by a person other than the consumer who was furnished with the card, code, or other means of access to such consumer’s account by such consumer, unless the consumer has notified the financial institution involved that transfers by such other person are no longer authorized, (B) initiated with fraudulent intent by the consumer or any person acting in concert with the consumer, or (C) which constitutes an error committed by a financial institution.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1602(i) of this title, referred to in par. (2), was redesignated section 1602(j) of this title by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107.

Amendments

2010—Pub. L. 111–203, § 1084(1), which directed the substitution of “Bureau” for “Board” wherever appearing, was executed by making the substitution in pars. (2) and (6) but not in par. (3), to reflect the probable intent of Congress. Par. (3). Pub. L. 111–203, § 1084(2)(A), redesignated par. (3) as (4) defining the term “Board”. Par. (4). Pub. L. 111–203, § 1084(2)(B), which directed addition of par. (4) defining the term “Bureau” after par. (3), was executed by making the addition after par. (4) defining the term “Board”, to reflect the probable intent of Congress. Pub. L. 111–203, § 1084(2)(A), redesignated par. (3) as (4) defining the term “Board”. Former par. (4) redesignated (5). Pars. (5) to (12). Pub. L. 111–203, § 1084(2)(A), redesignated pars. (4) to (11) as (5) to (12), respectively.

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.

§1693a Definitions