Conclusion: Electronic Fund Transfer Act and Regulation E

The documentation requirements of Regulation E include mandatory receipts at electronic terminals, periodic statements, notices of the completion of preauthorized transfers to the consumer’s account, notices of varying amounts of preauthorized transfers, annual and periodic error notices, and notices of changes in terms. The Regulation also requires that you follow extensive procedures in investigating and clearing up billing-error claims brought by the consumer. A consumer’s liability for unauthorized transfers is also limited by Regulation E. A consumer’s right to stop payment on a preauthorized withdrawal is established by the Regulation. And institutions are prohibited from issuing unsolicited access devices unless they follow certain rules in Regulation E. Finally, state laws and regulations also have an effect on electronic funds transfers in some states.

Regulation E appears at 12 CFR 1005.1 et seq. We have dealt in this section with most of the provisions in the Regulation, except those of Section 7 [12 CFR 1005.7], which concerns the initial disclosure. We deal with that section in our Regulation E chapter in Part I.