Q A member asked us to cancel a remittance transfer he requested 20 minutes ago. How long does a member have to cancel a remittance transfer and obtain a refund under Regulation E’s remittance transfer rules?
A The member (“sender”) has up to 30 minutes to cancel a remittance transfer request, provided that the credit union (“remittance transfer provider”) can identify the particular transfer, and the transferred funds have not been received or deposited into the recipient’s account.
The credit union may provide a longer cancellation period at the institution’s option. The remittance transfer provider must refund the total amount of funds and all fees (including any fees from third parties) within three business days and can’t charge an additional fee for the refund (Regulation E, Section 1005.34).
Q Does Regulation E’s overdraft rule apply if a credit union charges a flat monthly fee for the payment of ATM and one-time debit card overdrafts rather than a per-item or per-occurrence fee?
A Yes, an account with such a feature is subject to the restrictions in Reg E’s overdraft rule. The credit union cannot charge a fee for paying (or declining to pay) an ATM or one-time debit card overdraft unless the member receives proper written notice, and opts-in to the institution’s overdraft service in accordance with Section 1005.17 of Reg E.
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