CFPB Issues Compliance Bulletin on Preauthorized Electronic Fund Transfers
On November 23, 2015, the CFPB released Compliance Bulletin 2015-06, Needs for Consumer Authorizations for Preauthorized Electronic Fund Transfers. The CFPB released the bulletin to help remind institutions of the obligations underneath the Electronic Fund Transfer Act (EFTA) and it is applying Regulation E following the CFPB grew to become conscious of noncompliance and uncertainty of these obligations, particularly because they intersect using the Electronic Signatures in Global and National Commerce Act (E-SIGN Act). For instance, the CFPB tells institutions that dental tracks acquired over the telephone may authorize preauthorized electronic fund transfers under Regulation E, so long as the tracks also adhere to E-SIGN needs. 5 page compliance bulletin provides a listing of the present law, highlights relevant supervisory findings and, considerably, outlines the CFPB’s anticipations for organizations acquiring consumer authorizations for preauthorizes electronic fund transfers.
Compliance Bulletin 2015-06 are available at: http://files.consumerfinance.gov/f/201511_cfpb_compliance-bulletin-2015-06-needs-for-consumer-authorizations-for-preauthorized-electronic-fund-transfers.pdf.