Do one-time debit payments made over the phone require verbal authorization?

QUESTION: Should lenders require the customer to provide verbal authorization for one-time debit card payments over the phone? Should lenders retain recordings of such authorizations? ANSWER: Regulation E does not establish requirements pertaining to authorizations for one-time EFTs, but that doesn’t mean that lenders shouldn’t have certain practices in place [...]

By | 2017-07-07T23:43:37+00:00 July 7th, 2017|0 Comments

Do authorizations obtained over the phone violate Reg E?

QUESTION: Regulation E states that preauthorized EFTs from a consumer’s account may be authorized only by a writing signed or similarly authenticated by the consumer. Does this mean lenders can’t obtain such authorizations over the phone? ANSWER: Under EFTA and Regulation E, a lender can obtain a consumer's authorization for preauthorized EFTs in paper form [...]

By | 2017-07-07T23:23:37+00:00 May 22nd, 2017|0 Comments

Does Reg E apply to one-time payments?

QUESTION: Does Regulation E place any restrictions on lenders in connection with one-time electronic fund transfers (EFTs)? ANSWER: Regulation E establishes specific requirements for preauthorized EFTs, which are automated payments that the consumer authorizes to take place on a recurring basis. However, it does not impose authorization requirements for one-time [...]

By | 2017-07-07T23:29:08+00:00 May 8th, 2017|0 Comments