§ 1693c. — Terms and conditions of transfers.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC1693c]
TITLE 15--COMMERCE AND TRADE
CHAPTER 41--CONSUMER CREDIT PROTECTION
SUBCHAPTER VI--ELECTRONIC FUND TRANSFERS
Sec. 1693c. Terms and conditions of transfers
(a) Disclosures; time; form; contents
The terms and conditions of electronic fund transfers involving a
consumer's account shall be disclosed at the time the consumer contracts
for an electronic fund transfer service, in accordance with regulations
of the Board. Such disclosures shall be in readily understandable
language and shall include, to the extent applicable--
(1) the consumer's liability for unauthorized electronic fund
transfers and, at the financial institution's option, notice of the
advisability of prompt reporting of any loss, theft, or unauthorized
use of a card, code, or other means of access;
(2) the telephone number and address of the person or office to
be notified in the event the consumer believes than \1\ an
unauthorized electronic fund transfer has been or may be effected;
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\1\ So in original. Probably should be ``that''.
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(3) the type and nature of electronic fund transfers which the
consumer may initiate, including any limitations on the frequency or
dollar amount of such transfers, except that the details of such
limitations need not be disclosed if their confidentiality is
necessary to maintain the security of an electronic fund transfer
system, as determined by the Board;
(4) any charges for electronic fund transfers or for the right
to make such transfers;
(5) the consumer's right to stop payment of a preauthorized
electronic fund transfer and the procedure to initiate such a stop
payment order;
(6) the consumer's right to receive documentation of electronic
fund transfers under section 1693d of this title;
(7) a summary, in a form prescribed by regulations of the Board,
of the error resolution provisions of section 1693f of this title
and the consumer's rights thereunder. The financial institution
shall thereafter transmit such summary at least once per calendar
year;
(8) the financial institution's liability to the consumer under
section 1693h of this title;
(9) under what circumstances the financial institution will in
the ordinary course of business disclose information concerning the
consumer's account to third persons; and
(10) a notice to the consumer that a fee may be imposed by--
(A) an automated teller machine operator (as defined in
section 1693b(d)(3)(D)(i) of this title) if the consumer
initiates a transfer from an automated teller machine that is
not operated by the person issuing the card or other means of
access; and
(B) any national, regional, or local network utilized to
effect the transaction.
(b) Notification of changes to consumer
A financial institution shall notify a consumer in writing at least
twenty-one days prior to the effective date of any change in any term or
condition of the consumer's account required to be disclosed under
subsection (a) of this section if such change would result in greater
cost or liability for such consumer or decreased access to the
consumer's account. A financial institution may, however, implement a
change in the terms or conditions of an account without prior notice
when such change is immediately necessary to maintain or restore the
security of an electronic fund transfer system or a consumer's account.
Subject to subsection (a)(3) of this section, the Board shall require
subsequent notification if such a change is made permanent.
(c) Time for disclosures respecting accounts accessible prior to
effective date of this subchapter
For any account of a consumer made accessible to electronic fund
transfers prior to the effective date of this subchapter, the
information required to be disclosed to the consumer under subsection
(a) of this section shall be disclosed not later than the earlier of--
(1) the first periodic statement required by section 1693d(c) of
this title after the effective date of this subchapter; or
(2) thirty days after the effective date of this subchapter.
(Pub. L. 90-321, title IX, Sec. 905, as added Pub. L. 95-630, title XX,
Sec. 2001, Nov. 10, 1978, 92 Stat. 3730; amended Pub. L. 106-102, title
VII, Sec. 703, Nov. 12, 1999, 113 Stat. 1464.)
References in Text
For effective date of this subchapter, referred to in subsec. (c),
see section 921 of Pub. L. 90-321, set out as an Effective Date note
under section 1693 of this title.
Amendments
1999--Subsec. (a)(10). Pub. L. 106-102 added par. (10).
Section Referred to in Other Sections
This section is referred to in sections 1693b, 1693d, 1693g, 1693i
of this title.
