[Rich]

I am doing an annual NACHA Audit, and I am thoroughly confused. Is a UCC-4a disclosure required on a consumer Electronic Transfer Disclosure? On a Consumer Account Disclosure?

I have read that UCC-4a is not applicable to any transaction covered by Reg E. TRUE?

Where should it be disclosed?

Topic

[kmeade]

We disclose this information in the “Terms and Conditions” under the “ACH and Wire Transfers” section. Hope this helps!

[rcooper]

UCC 4A is generally not applicable to transactions covered by EFTA/Reg E. See the EFTA exemption here: https://www.law.cornell.edu/ucc/4A

I would recommend providing it on the account agreement. The NACHA rules should give you some direction on the requirement, but I also found this link to an ABA article that might be helpful to you: https://www.aba.com/Tools/Function/Legal/Documents/UCCArticle4a.pdf

[rcooper]

Comments from Don Blaine:

It does appear, based on the links provided, that 4A does not apply to a “normal” Reg E EFT but if it’s a remittance transfer from a consumer to another consumer in a foreign country it may be covered as long as it did not involve an electronic transfer by the consumer sending the money. For example, if you walk in an give your bank $1K in cash and ask them to wire to India the transaction would be covered by 4A but if you were the one to electronically send $1K to someone in a foreign country then 4A doesn’t apply since your transfer would be an electronic funds transfer. Neither the Univ of Cornell website or the ABA article said anything about written disclosures to consumers but Reg DD’s 1030.4(b)(4) requires the bank to disclose, in its account opening disclosures, “the amount of any fee that may be imposed in connection with the account (or an explanation of how the fee will be determined) and the conditions under which the fee may be imposed”.

[Author]

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