§1693c Terms and Conditions of Transfers

Summary

Banks and other companies that let customers move money electronically must give clear written terms when a customer signs up, following rules set by the Bureau. The notice must explain things like the customer’s responsibility for unauthorized transfers; who to call and where to write if a problem happens; what kinds of transfers are allowed and any limits (unless keeping limits secret is needed for security); any fees; how to stop a scheduled transfer; the right to get records; a yearly summary of how to report errors; the bank’s liability; when the bank may share account info; and that ATM operators or payment networks may charge fees. If a term that makes the service cost more, increases the customer’s risk, or reduces access is going to change, the bank must send a written notice at least 21 days before the change starts. The bank can act right away without that notice if it must to protect security, and the Bureau may require later notice if the change is kept permanently. For accounts already usable by electronic transfers before the law took effect, the required disclosures must be given by the first periodic statement after the effective date or within 30 days after that date, whichever comes first.