Reg E Preauthorized Transfer Varying Amount

Posted By: Jan94

Reg E Preauthorized Transfer Varying Amount - 03/25/19 05:08 PM

Is there anything that defines a "written notice" for this requirement? If a statement is provided 10 days prior to a preauthorized loan payment being due, would this suffice for the written notice or does it have to be a separate mailed notice? The related commentary doesn't appear to speak to this specifically. Thank you.

1005.10(d) Notice of transfers varying in amount. (1) Notice. When a preauthorized electronic fund transfer from the consumer's account will vary in amount from the previous transfer under the same authorization or from the preauthorized amount, the designated payee or the financial institution shall send the consumer written notice of the amount and date of the transfer at least 10 days before the scheduled date of transfer.
Posted By: John Burnett

Re: Reg E Preauthorized Transfer Varying Amount - 03/25/19 05:27 PM

Assuming that the statement includes the amount to be debited and it's provided at least 10 days before the scheduled transfer date, the statement is the notice required by 1005.10(d).
Posted By: Jan94

Re: Reg E Preauthorized Transfer Varying Amount - 03/25/19 06:50 PM

Yes, the statement includes the amount to be debited, the due date and the statement date is at least 10 days before. Thank you for your help!