Deposit Operations: Reg E Considerations

Question 1

This type of error occurs when someone other than the account holder makes an EFT. For example, a consumer drops her debit card while shopping at a department store. Another shopper picks up the card off of the floor and uses the stolen card to buy items in the store.

Answer 1

Unauthorized EFTs

Question 2

This type of error occurs when there is a discrepancy between the intended transaction and the actual transaction. For example, a consumer uses his debit card to withdraw $10 in cash, but the receipt indicates he withdrew $100.

Answer 2

Incorrect EFTs

Question 3

This type of error occurs when omission happens when an expected EFT does not occur. For example, a consumer notices that her monthly periodic statement does not include the EFT she uses to pay her cable bill.

Answer 3

EFT omissions

Question 4

This type of error occurs when a computer or bookkeeping error happens with an EFT. For example, a software update to an institution’s computers adds two zeroes at the end of each EFT.

Answer 4

Institution computer or bookkeeping error

Question 5

This type of error can occur at electronic terminals, where a wrong amount may be issued. For example, a consumer uses her grocery store’s checkout terminal to withdraw $80, but receives $100 instead.

Answer 5

Wrong amount issued at an electronic terminal

Question 6

This type of error occurs when the transaction has incorrect information. For example, a consumer uses the ATM at one location, but the statement indicates that consumer made the transaction from another location.

Answer 6

Improper identification of EFTs

Question 7

When a periodic statement is not received, can it be considered an EFT error?

Answer 7

Yes

Question 8

An institution must receive notification of a suspected EFT error no more than __ days after the institution issued the periodic statement containing the error.

Answer 8

60 Days

Question 9

A financial institution must promptly investigate any suspected error and reveal the findings within __ business days of being notified of the error.

Answer 9

10 Business Days

Question 10

An institution may take 45 calendar days to investigate an error only if it meets the following requirements:

Answer 10

• The consumer’s account is provisionally credited for the disputed amount within 10 business days.
• The consumer has access to provisionally credited money during the investigation.

Question 11

Within __ days of the provisional credit, the consumer must be notified either orally or in writing of the amount, the date of the credit, and the fact the consumer has access to those funds during the length of the investigation.

Answer 11

2 Days

Question 12

An institution may add up to __ days when investigating EFT errors related to Point of Sale transactions or if the notice is received within 30 days of the first deposit to a new account.

Answer 12

90 Days

Question 13

Where must an ATM fee be disclosed?

Answer 13

It must be displayed on the ATM Screen or printed on a paper receipt issued from the ATM before the consumer is committed to paying a fee.

Question 14

Which regulation generally prohibits displaying a balance at an ATM that includes any amounts available to cover items when there are insufficient funds in the consumer’s account.

Answer 14

Regulation DD

Question 15

Is a consumer bookkeeping error considered an EFT Error?

Answer 15

No!

Question 16

If a consumer is using telephone banking to conduct a transaction, can it be considered a preauthorized transfer?

Answer 16

No!

Question 17

Can a loan be conditioned on the consumer’s repayment by preauthorized Electronic Funds Transfers?

Answer 17

No

Question 18

When a payor does not provide notice to the consumer about the status of the preauthorized transfer, the account holding institution must do so within __ business days after the transaction occurred or was scheduled to occur.

Answer 18

2 Business Days

Question 19

Consumers may preauthorize transfers from their accounts to pay bills that vary in amount. To accomplish this, the financial institution or payee must provide at least a __ day notice of the amount and date of the transfer, and obtain the consumer’s authorization to pay bills that fall within a specified range.

Answer 19

10 Day

Question 20

A consumer may place a stop order by written or oral notice any time up to __ business days before the transfer is to be made.

Answer 20

3 Business Days

Question 21

A financial institution may require consumers to provide a written confirmation of an oral request for stop payment. This requirement must be told to consumers when the oral request is given, and the address for sending the written confirmation must be provided to consumers at that time. Should the consumer fail to provide the requested written confirmation within __ days, the oral stop payment request ceases to be binding.

Answer 21

14 Days