Annual Survey of Consumer Financial Services Law: Electronic Fund Transfers and the New Payments Code

Final commentary has been published regarding the Electronic Fund Transfer (EFT) Act, but the Federal Reserve Board has dropped its efforts to integrate the EFT Act with the Truth in Lending Act. The commentary is set out in a question and answer format, and reflects the difficulties of regulating a...

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Bibliographic Details
Published in:The Business lawyer 1982-04, Vol.37 (3), p.1065
Main Authors: Brandel, Ronald E, Geary, Anne
Format: Article
Language:English
Subjects:
Automated teller machines
Consumer protection
EFTS
Electronic funds transfer systems
Federal legislation
Financial institutions
Financial services
Houses
Liability
State court decisions
Telephone banking
Uniform Commercial Code-US
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Summary:Final commentary has been published regarding the Electronic Fund Transfer (EFT) Act, but the Federal Reserve Board has dropped its efforts to integrate the EFT Act with the Truth in Lending Act. The commentary is set out in a question and answer format, and reflects the difficulties of regulating an infant industry. It makes clear that a telephone transfer plan will not be deemed to exist in the absence of a written agreement, and that a consumer cannot be conclusively presumed to have knowledge of an unauthorized transfer merely because of receipt of a statement. Another interesting development this past year concerned the enactment of EFT legislation in Massachusetts. It grants authority to share electronic terminals and to use them statewide. Desirable national uniformity is threatened by such piecemeal state action. There are as yet no reported decisions under the EFT Act. Electronic fund transfers and related technological developments have spurred efforts to create a New Payments Code (NPC), although it does not as yet exist. This would supplement or supplant the Uniform Commercial Code (UCC) where the UCC was inadequate to cope with the different environment presented by EFT. There remains some question as to whether it should be promulgated as possible uniform state legislation or left to federal action.
ISSN:0007-6899
2164-1838