CFPB PUBLISHES EFT FAQS

On June 4, 2021, the Consumer Financial Protection Bureau published eight Electronic Fund Transfers FAQs. The Frequently Asked Questions address:

  1. Do fraudulent inducements constitute “unauthorized electronic fund transfer?”
  2. In a fraudulent inducement has a consumer furnished an access device under Regulation E?
  3. Can negligence by the consumer be used as the basis for imposing greater liability than is permissible under Regulation E.?
  4. Can an agreement restrict a consumer’s rights beyond what is provided in the law?
  5. Can a financial institution rely on private network rules that provide less consumer protection than federal law?
  6. Can a financial institution require a consumer to file a police report or other documentation as a condition of initiating an error resolution investigation?
  7. Can a financial institution require that a consumer to first contact the merchant about a potential unauthorized EFT before the institution initiates its error resolution investigation?
  8. How does a financial institution determine the consumer’s liability when a transfer meets the definition of “unauthorized electronic fund transfer?”