Ask the Experts: Payments made over the phone and consumer consent

Proving consumer consent to payments over the phoneQuestion: 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 to ensure those transactions are carried out properly.

Ask the Experts: Does Reg E apply to one-time payments?

Does Reg E apply to one-time EFTs?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 EFTs.

Question: Should lenders obtain written authorization from the consumer for each one-time debit card payment even though Reg E doesn’t impose any requirements upon lenders for one-time EFTs? What about one-time payments by ACH?