As technology has continued to develop, digital payment methods have become more and more prevalent. Regulation E, which addresses how to handle unauthorized transactions, hasn’t necessarily kept up. That creates a lot of confusion! Over the last year or so, the CFPB issued EFT FAQs as a way to provide guidance and clear up common scenarios like this.
Jerod explains more in the video.
Video Highlights:
- When it comes to payment app fraud, the CFPB chimed in December 2021 with a loophole that may exempt banks from certain unauthorized transactions under Reg E.
- Zelle transactions (third-party services), debit card transactions and ACHs must be dealt with according to Reg E regulations; however, there is criteria that must be met for the loophole to apply.
- Due to the influx of complaints about third-party payment apps customers not getting restitution or refunds, the CFPB is looking for ways to rectify this.
Published
2023/08/08