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

Summary

Banks and other financial firms must give you clear written terms when you sign up for electronic transfers. Under rules from the Bureau, the disclosure must be easy to understand and cover 10 key things, including who pays if transfers are unauthorized and how quickly you should report them, the phone number and address to report suspected fraud, what kinds of transfers you can make and any limits, any fees, how to stop a preauthorized transfer, your right to get records, an annual summary of how to fix errors, the firm’s liability to you, when the firm may share your account information, and that an ATM operator or network may charge a fee. If a firm will raise your costs or limits or make it harder to access your account, it must mail you a written notice at least 21 days before the change takes effect. The firm may act sooner only to protect account or system security, but if the change is made permanent the Bureau will require later notice. For accounts already able to use electronic transfers before this rule started, the required disclosures must be sent by the first periodic statement after the rule takes effect or within 30 days, whichever comes first.

Title 15, §1693c

Commerce and Trade — Source: USLM XML via OLRC

(a)The terms and conditions of electronic fund transfers involving a consumer’s account shall be disclosed at the time the consumer contracts for an electronic fund transfer service, in accordance with regulations of the Bureau. Such disclosures shall be in readily understandable language and shall include, to the extent applicable—

(1)the consumer’s liability for unauthorized electronic fund transfers and, at the financial institution’s option, notice of the advisability of prompt reporting of any loss, theft, or unauthorized use of a card, code, or other means of access;

(2)the telephone number and address of the person or office to be notified in the event the consumer believes than 11 So in original. Probably should be “that”. an unauthorized electronic fund transfer has been or may be effected;

(3)the type and nature of electronic fund transfers which the consumer may initiate, including any limitations on the frequency or dollar amount of such transfers, except that the details of such limitations need not be disclosed if their confidentiality is necessary to maintain the security of an electronic fund transfer system, as determined by the Bureau;

(4)any charges for electronic fund transfers or for the right to make such transfers;

(5)the consumer’s right to stop payment of a preauthorized electronic fund transfer and the procedure to initiate such a stop payment order;

(6)the consumer’s right to receive documentation of electronic fund transfers under section 1693d of this title;

(7)a summary, in a form prescribed by regulations of the Bureau, of the error resolution provisions of section 1693f of this title and the consumer’s rights thereunder. The financial institution shall thereafter transmit such summary at least once per calendar year;

(8)the financial institution’s liability to the consumer under section 1693h of this title;

(9)under what circumstances the financial institution will in the ordinary course of business disclose information concerning the consumer’s account to third persons; and

(10)a notice to the consumer that a fee may be imposed by—

(A)an automated teller machine operator (as defined in section 1693b(d)(3)(D)(i) of this title) if the consumer initiates a transfer from an automated teller machine that is not operated by the person issuing the card or other means of access; and

(B)any national, regional, or local network utilized to effect the transaction.

(b)A financial institution shall notify a consumer in writing at least twenty-one days prior to the effective date of any change in any term or condition of the consumer’s account required to be disclosed under subsection (a) if such change would result in greater cost or liability for such consumer or decreased access to the consumer’s account. A financial institution may, however, implement a change in the terms or conditions of an account without prior notice when such change is immediately necessary to maintain or restore the security of an electronic fund transfer system or a consumer’s account. Subject to subsection (a)(3), the Bureau shall require subsequent notification if such a change is made permanent.

(c)For any account of a consumer made accessible to electronic fund transfers prior to the effective date of this subchapter, the information required to be disclosed to the consumer under subsection (a) shall be disclosed not later than the earlier of—

(1)the first periodic statement required by section 1693d(c) of this title after the effective date of this subchapter; or

(2)thirty days after the effective date of this subchapter.

Notes & Related Subsidiaries

Editorial Notes

References in Text

For

Effective Date

of this subchapter, referred to in subsec. (c), see section 921 of Pub. L. 90–321, set out as an

Effective Date

note under section 1693 of this title.

Amendments

2010—Subsecs. (a), (b). Pub. L. 111–203 substituted “Bureau” for “Board” wherever appearing. 1999—Subsec. (a)(10). Pub. L. 106–102 added par. (10).

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.

§1693c Terms and Conditions of Transfers

Summary

Title 15, §1693c

Notes & Related Subsidiaries

Editorial Notes

References in Text

Effective Date

Effective Date

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Citations & Metadata