15 U.S.C. § 1693i: Issuance of cards or other…

Summary

Companies must not give a consumer a card, code, or other way to access the consumer’s account for making electronic transfers unless the consumer asked for it or it is a renewal or replacement of an accepted access device (including from the original issuer or a successor). A company may send an access device without being asked only if it is not activated, it comes with the full disclosure of the consumer’s rights and liabilities under section 1693c, it clearly says it is not activated and explains how to throw it away if the consumer does not want it (as the Bureau’s rules require), and it is activated only after the consumer requests it and their identity is verified. Validation means it can be used to make an electronic transfer.

Title 15, §1693i

Commerce and Trade, Source: USLM XML via OLRC

(a)Prohibition; proper issuance

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)Exceptions

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)Validation

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