Explains the requirements to authorize a preauthorized electronic fund transfer from a consumer’s account. Describes compulsory use and the stop payment of a preauthorized electronic fund transfer, including notification to the bank orally or in writing.
After completing this course, students will be able to:
• Define a preauthorized transfer
• Clarify the stop payment rules applicable to preauthorized transfers from an account
• Explain the disclosure requirements for preauthorized transfers