WASHINGTON (11/25/15)--The Consumer Financial Protection Bureau (CFPB) expects all entities obtaining consumer authorizations for pre-authorized electronic fund transfers (EFTs) to comply with the Electronic Fund Transfer Act and Regulation E, it reminded in a compliance bulletin issued this week. Pre-authorized EFTs refer to an electronic funds transfer authorized in advance to recur at substantially regular intervals.
Under federal law, consumers have the right to stop automatic debits from their accounts and can revoke authorization.
Regulation E requires that pre-authorized EFTs from a consumer’s account be authorized “only by a writing signed or similarly authenticated by the consumer.” It also required that entities that obtain authorizations must provide a copy of the terms to the consumer, in paper form or electronically.
When practical, the bureau encourages entities obtaining consumer authorizations for pre-authorized EFTs to provide the copy of the authorization to the consumer before the first pre-authorized EFT is initiated.
The CFPB also released its monthly complaint snapshot this week, focusing on financial institution accounts or services, as well as consumer complaints from Connecticut.
As of Nov. 1, the bureau handled roughly 75,300 complaints involving accounts or services.
Those complaints included:
Bank of America, Wells Fargo and JPMorgan Chase were the three companies about which the CFPB has received the most bank account or service-related complaints. Between June and August, the three companies averaged roughly 229 such complaints.