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EFTs and Opting-in

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Question: 
My question is related to PART 205—ELECTRONIC FUND TRANSFERS (REGULATION E) Section 205.17 Requirements for overdraft services. <i>(iv) Provides the consumer with confirmation of the consumer's consent in writing, or if the consumer agrees, electronically, which includes a statement informing the consumer of the right to revoke such consent.</i> For new accounts, will this requirement for confirmation be satisfied if the new account disclosures contain the appropriate language, or are we required to mail a separate confirmation to the customer who opts in after the fact?
Answer: 

There has to be a separate delivery of the confirmation, which must contain the language about being able to revoke an opt-in at any time. It can be a copy of the disclosure given earlier, if it includes the required information, but it still has to be a separate delivery, in written or, if approved by the consumer, electronic form. It can be handed to the customer at the time he or she opts in, emailed (if approved) or sent by snail mail. It can even be delivered as a screen in an online dialog in which the consumer opts in.

First published on BankersOnline.com 7/26/10

First published on 07/26/2010

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