Implemented by _______________, EFTA is intended to provide certain rights to individual consumers using EFT payment systems. It also places responsibilities on financial institutions whose accounts are affected by EFTs.
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A. B. C. D.A
The correct answer is A. Regulation E (Electronic Fund Transfers).
Regulation E is a federal law that was enacted by the Electronic Fund Transfer Act (EFTA) in 1978. The law provides a basic framework of the rights, liabilities, and responsibilities of consumers who use electronic fund transfer (EFT) services and the financial institutions that offer these services.
The purpose of EFTA is to protect individual consumers who use electronic fund transfer services, such as ATM withdrawals, point-of-sale (POS) purchases, and electronic bill payments. EFTA establishes certain requirements for financial institutions and their EFT services, including:
Disclosures: Financial institutions must provide consumers with clear and conspicuous disclosures about the terms and conditions of their EFT services before the consumer begins to use the service.
Error resolution: Financial institutions must investigate and resolve errors related to EFTs, such as unauthorized transactions or incorrect amounts, within a specific time frame.
Limitation of liability: Consumers have limited liability for unauthorized EFT transactions, but the law requires them to report the unauthorized transaction within a specified time frame.
Preauthorized transfers: Consumers have the right to stop preauthorized EFT transactions from their accounts by notifying their financial institution.
Record-keeping: Financial institutions must maintain records of EFT transactions, including electronic receipts, for a specific period.
Overall, EFTA provides important protections for consumers who use electronic fund transfer services and places certain responsibilities on financial institutions. Therefore, A. Regulation E is the correct answer to the question.