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CFPB adds EFT FAQ on tips

The CFPB has updated its Electronic Fund Transfer FAQs. New Transactions Coverage question 6 asks whether the compulsory use prohibition applies to tips, and is directed to employers whose employees receive compensation in the form of tips or gratuities. After explaining its reasoning, the CFPB's answer is "... employers are prohibited by EFTA and Regulation E from requiring workers to establish an account with a particular financial institution to receive tips."

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