Electronic Fund Transfer Act- EFTA
Have you ever given your DEBIT CARD to a debt collector over the telephone to process payments in the last 3 years? And did the debt collector process 3 or more consecutive payments without your written consent? The Electronic Fund Transfer Act is a federal statute that regulates the responsibilities when dealing with electronic funds and debits. As a result, any debit AUTHORIZATION MUST BE IN WRITING PRIOR TO RUNNING ANY AUTOMATED FUTURE PAYMENTS. Therefore, failure to secure written authorization prior to taking the funds is a violation under the EFTA.
What is the Electronic Fund Transfer Act?
Congress enacted The Electronic Fund Transfer Act (EFTA). The act defines the responsibilities, rights, and liabilities when dealing electronic fund and remittance transfer systems. The EFTA states that the consumer may authorize a preauthorized electronic fund transfer only in writing. The statue is very clear. This is the only manner in which a consumer can consent to future preauthorized electronic funds transfers. It is the duty of the institution taking the funds from the consumers account to have this authorization in writing prior to taking the funds. Consequently, the failure to secure written authorization prior to taking the funds is a violation of the EFTA.
Some common examples in which companies may violate your EFTA rights and are regulated by this law include; banks, credit unions, service providers such as a cellular providers or a utility company, credit card companies, debt collectors, payday lenders and companies to which automatic monthly payments are made by a consumer (such as a lender for a car loan).
The EFTA applies strict civil liability to financial institutions that do not comply with the regulations as set forth by the EFTA. Any act in violation of the statute is subject up to $1,000.00 in statutory fees plus reasonable attorney fees.
Contact us now to speak to one of our legal professionals to see if we can help.
Contact our office for assistance
Consumer Rights Law Firm, PLLC is a law firm that specializes in helping clients who are facing harassment from debt collectors in any form, including telephone communication.
If you are interested in learning more about how to safeguard yourself , call us at (877)700-5790 for immediate assistance or visit our website at www.consumerlawfirmcenter.com