Consumer Handbook to Credit Protection Laws (Part 5)
Structure Of Social Security NumbersA Social Security Number (SSN) consists of nine digits, commonly written as three fields separated by hyphens: AAA-GG-SSSS. The first three-digit ..... What About Solicitations?
A financial institution may send you an EFT card that is VALID FOR USE only if you ask for one, or to replace or renew an expiring card. The financial institution must also give you the following information about your rights and responsibilities:
-- A notice of your liability in case the card is lost or stolen;
-- A telephone number for reporting loss or theft of the card or an unauthorized transfer;
-- A description of its error resolution procedures;
-- The kinds of electronic fund transfers you may make and any limits on the frequency or dollar amounts of such transfers;
-- Any charge by the institution for using EFT services;
-- Your right to receive records of electronic fund transfers;
-- How to stop payment of a pre-authorized transfer;
-- The financial institution's liability to you for any failure to make or to stop transfers; and
-- The conditions under which a financial institution will give information to third parties about your account.
Generally, you must also get advance notice of any change in the account that would increase your costs or liability, or limit transfers.
A financial institution may send you a card you did not request only if the card is NOT VALID FOR USE. An "unsolicited" card can be validated only at your request and only after the institution makes sure that you are the person whose name is on the card. It must also be sent with instructions on how to dispose of an unwanted card.
Do I Have to Use EFT?
The EFT Act forbids a creditor from requiring you to repay a loan or other credit by EFT, except in the case of overdraft checking plans. And, although your employer or a government agency can require you to receive your salary or a government benefit by electronic transfer, you have the right to choose the financial institution that will receive your funds.
Special Questions About Pre-authorized Plans
Q. How will I know a pre-authorized credit has been made?
A. There are various ways you may be notified. Notice may be given by your employer (or whoever is sending the funds) that the deposit has been sent to your financial institution. Otherwise, a financial institution ......
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