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Notice for Automatic Transfer from Checking Acct.

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What are the requirements to mail a notice to the customer if they have pre-arranged for an automatic transfer from their checking account to make a loan payment?

There are none at the Federal level unless the payment amount varies and I doubt that there are any at the State level.

12 CFR 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.

(2) Range. The designated payee or the institution shall inform the consumer of the right to receive notice of all varying transfers, but may give the consumer the option of receiving notice only when a transfer falls outside a specified range of amounts or only when a transfer differs from the most recent transfer by more than an agreed- upon amount.

First published on 02/02/2015

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