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#2099848 - 09/22/16 02:57 AM Copyof written authorization for preauthorized EFT
fct Offline
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Joined: Oct 2011
Posts: 24
If a customer initiates a payment though Bill Pay in our internet banking platform, are we in violation of Regulation E 1005.10(b) if we do not give them a written copy of their authorization?

The CFPB bulletin 2015-06 clarifies expectations of what should be included in a notice if we initiate a preauthorized EFT. They reiterate their expectation for all entities who obtain consumer authorizations for preauthorized EFTs to comply with 1005.10(b), but in the case of the customer logging in to internet banking, setting up a recurring bill pay... who is "initiating" this preauthorized EFT? The customer who logs in to set it up, or the bank who captures the customer instructions to debit their account in this way? Is the bank on the hook for the copy of the authorization?

I understand a third party merchant would be on the hook if they initiate the preauthorized EFT, but it seems grey to me if in the case of a bank carrying out the customer's directions. Maybe I'm taking the word "initiate" too literally.

Help.

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#2099855 - 09/22/16 11:05 AM Re: Copyof written authorization for preauthorized EFT fct
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,622
Galveston, TX
You don't give them the option to print the authorization in your software at the time of set-up?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2099878 - 09/22/16 01:08 PM Re: Copyof written authorization for preauthorized EFT rlcarey
fct Offline
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Joined: Oct 2011
Posts: 24
rlcarey, the product owner only offered me the internet banking general terms and conditions. It sounds like you opine we the bank are the initiator?

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