What is EFTA and What Does it Stand For?
EFTA stands for the Electronic Funds Transfers Act. And true to its name, it is the law that provides for the rights and responsibilities of those making electronic transfers. What is an electronic funds transfer? It is transferring funds through any sort of electronic terminal. That could be by phone, by computer, by magnetic tape swipe, or through an app on your phone. Almost anything that is not a check or other actual paper.
Congress created this law because, while the use of electronic systems to transfer funds is a great benefit to us all, the unique characteristics of these systems require consumer protection. So EFTA was created to provide the basic framework of those protections.
EFTA establishes the rules for when and how authorizations for transfers must be in writing and prescribes what rights you have when ordering a transfer. Importantly, it provides a mechanism for error resolution. That means that when an unauthorized transfer of your money happens, you have rights to have the bank investigate and return your money.
If you have had fraudulent electronic transfers from your personal bank accounts, contact SmithMarco, P.C. for a free case review.
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