INTERNATIONAL LAWS

The Electronic Funds Transfer (EFT) Act, also known as Regulation E, was implemented in the US in 1978 to establish the rights and liabilities of consumers as well as the responsibilities of all participants in EFT activities.

EFT Errors

EFT is not a perfect system; therefore customers should still be diligent in reviewing their EFT statements for possible errors as they would with any other type of transaction. Should a customer notice that there has been an error in an electronic fund transfer relating to their account certain steps must be taken:

Under the Act the Customer must:
Write or call the financial institution immediately if possible
Must be no later than 60 days from the date of erroneous statement
Give name and account number
Explain why you believe there is an error, the type, dollar amount and date
May be required to send details of error in writing within 10 business days [2]

Under the Act the Financial Institution must:
Promptly investigate the error and resolve it within 45 days
Errors involving new accounts (opened last 30 days), POS transactions, and foreign transactions they may take up to 90 days
If takes > 10 business days to complete investigation:
Must recredit the amount in question
For new accounts may take up to 20 business days to recredit the account
Must notify customer of the results of investigation:
If there was error – correct it or make recredit final
If no error – explanation in writing, notify customer of deducted recredit
Customer has the right to ask for copies of any documents relied on in the investigation [3]

Loss or Theft: Customer Liability

If a customer reports the card missing to the institution before any transactions occur, they are not held responsible. A customer can be liable for unauthorized withdrawals if their EFT card is lost or stolen and they do not follow certain criteria:
Loss is limited to $50 if institution is notified within two business days
Loss could be up to $500 if institution is not notified within 2 business days
If loss is not reported within 60 business days customer risks unlimited loss on transfers made after the 60 day period – could lose all money in account plus maximum over draft if any [4]

Financial Institution Liability

The financial institution must give the customer notice of their liability in case the card is lost or stolen. This must include a phone number for reporting the loss and a description of its error resolution process. [5]

What the EFT Act Covers
The EFT Act does not apply to all preauthorized plans. The EFT Act does not apply to automatic transfers from any account held in the name of the institution the consumer uses to the account the consumer uses.
An example of this would be where the EFT Act would not apply to any automatic payments put towards a mortgage held by the financial institution where a consumer would hold their electronic funds account.
The EFT Act would also not apply to automatic transfers among a consumer’s account at a specific financial institution.
The EFT Act also does not cover all transfers. Some banks, other financial institutions, and vendors will produce cards with a cash value imprinted into the card itself. [6]
Examples of these include public transit passes, store gift cards, and prepaid telephone cards. These cards may not be covered by the EFT Act.
When using electronic funds transfer, the Act does not give the consumer the right to stop payment.
State law or any contract that imposes a lower liability limit than those mentioned in the “Loss or Theft: Customer Liability” will be preempted (overridden) by the federal EFT Act unless the state law provides protections that are greater than that provided under Federal law. 

Rights

The EFT Act allows consumers the right to choose their own institution if the consumer is required to receive their salary or government benefit check by electronic funds transfer means. 

The EFT Act also forbids any creditor or lender from asking a consumer to repay a loan or other credit via an electronic fund transfer – with the exception of one instance: when there is an overdraft on checking plans.

Freedom of Information Act 

The  Freedom of Information Act, 1997 enables members of the public to obtain access to information held by public bodies to the greatest possible extent consistent with the public interest and the right to privacy of individuals. 

Rights 

In particular, the Act establishes three new statutory rights: 
 a right for each person to access records held by public bodies 
 a right for each person to have amendments made to such records in cases
      where the information relating to him/herself is incomplete, incorrect or
      misleading;
 a right to obtain reasons for decisions by public bodies affecting oneself.

Records accessible under Freedom of Information 

Under the Freedom of Information Act, and subject to the exemptions provided for in that Act, there is a right of access to records held by public bodies as follows:
          ƒ   There is a general right of access to records created since 21 April 1998 and records created before that date if access to them is necessary or expedient to understand records created after that date. 
 Every person has the right to see records (other than personnel records) which contain personal information about him/herself, irrespective of when they were created. 
 Every member of staff has the right to see personnel records relating to  him/herself created since 21 April 1995 and to such records created before that date if they are being used or are proposed to be used in a manner which may adversely affect his/her interests.
 Later dates apply in the case of local authorities, health boards and public voluntary hospitals.

Fair Credit Reporting Act 


The Fair Credit Reporting Act (FCRA) is a United States federal law that regulates the collection, dissemination, and use of consumer information, including consumer credit information. Along with the Fair Debt Collection Practices Act (FDCPA), it forms the base of consumer credit rights in the United States. It was originally passed in 1970, and is enforced by the US Federal Trade Commission and private litigants.

Congressional findings and statement of purpose  
 (a) Accuracy and fairness of credit reporting. The Congress makes the following findings:
 (1) The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system. 
 (2) An elaborate mechanism has been developed for investigating and evaluating the
      credit worthiness, credit standing, credit capacity, character, and general
      reputation of consumers.
 (3) Consumer reporting agencies have assumed a vital role in assembling and
      evaluating consumer credit and other information on consumers.
 (4) There is a need to insure that consumer reporting agencies exercise their grave
      responsibilities with fairness, impartiality, and a respect for the consumer's right
      to privacy.
 (b) Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title.