Chapter 9: Financial Privacy
Regulation E and the Electronic Fund Transfer Act
The EFTA (1978), implemented by Regulation E, sets consumer rights and company duties for electronic fund transfers (ATM, direct deposit, point-of-sale, debit card). The CFPB now holds rulemaking authority and clarified in 2021 that Reg E covers P2P payments like Zelle and Venmo, with unauthorized EFTs the institution's responsibility.
Who eats the fraud
The CFPB clarified in 2021 that unauthorized EFTs are the responsibility of the financial institution, not the consumer, and that Reg E covers person-to-person payments (Zelle, Venmo) that meet the EFT definition.
Key terms - quick answers
What is “Electronic fund transfer (EFT)”?
Any transfer of funds initiated through an electronic terminal, telephone, computer or magnetic tape to debit or credit a consumer's account, such as ATM, direct deposit, point-of-sale or debit card transfers.
What is “Regulation E”?
The rule implementing the EFTA, with rulemaking transferred to the CFPB in 2011 under Dodd-Frank.