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CFPB Guidance On Recurring Electronic Debits

November 30, 2015

Authors

Bryan Cave

CFPB Guidance On Recurring Electronic Debits

November 30, 2015

by: Bryan Cave

On November 23, 2015, the CFPB issued a Bulletin alerting companies that they must obtain proper authorization from consumers before automatically debiting their accounts. The Bulletin relates to the Electronic Fund Transfer Act requirements for “preauthorized electronic fund transfers,” which are EFTs scheduled in advance to recur at substantially regular intervals. The preauthorized EFTs in the CFPB’s spotlight are those that debit a consumer’s account.

Regulation E of the EFTA provides that preauthorized EFTs from a consumer’s account must be authorized by a “writing signed or similarly authenticated by the consumer.” The authorization must be readily identifiable as such

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New Legislation Introduced on ATM Notices

April 20, 2012

Authors

Bill Custer and Jennifer Dempsey

New Legislation Introduced on ATM Notices

April 20, 2012

by: Bill Custer and Jennifer Dempsey

Legislation has been introduced in the United States House of Representatives that, if passed, would relieve banks of the responsibility of installing and monitoring the presence of physical notices on their ATMs notifying customers about the imposition of ATM transaction fees.

On April 17, 2012, Representatives Blaine Luetkemeyer (R-MO) and David Scott (D-GA) introduced H.R. 4367 which seeks to amend the Electronic Fund Transfer Act to limit the fee disclosure requirement for operators of ATMs to the electronic notice alone. The electronic notice allows a consumer to choose whether the consumer wishes to continue with the ATM transaction and pay

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Class Actions Filed Against Four Georgia Banks Over ATM Physical Fee Disclosure

March 15, 2012

Authors

Bill Custer and Jennifer Dempsey

Class Actions Filed Against Four Georgia Banks Over ATM Physical Fee Disclosure

March 15, 2012

by: Bill Custer and Jennifer Dempsey

Four class action complaints have been filed in the last two weeks against four different Georgia community banks alleging that the banks have violated the Electronic Fund Transfer Act.  The complaints were filed in the federal courts and all allege that the banks imposed fees on consumers who withdrew cash from the bank’s ATMs and that the banks allegedly failed to post a physical notice on the ATMs that a fee would be imposed for such services.

The Electronic Fund Transfer Act requires both a physical notice at or on the ATM in addition to the electronic notice the customer

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