On November 23, 2015, the CFPB issued Compliance Bulletin 2015-06, Requirements for Consumer Authorizations for Preauthorized Electronic Fund Transfers. The CFPB issued the bulletin to remind institutions of their obligations under the Electronic Fund Transfer Act (EFTA) and its implementing Regulation E after the CFPB became aware of noncompliance and uncertainty of such obligations, particularly as they intersect with the Electronic Signatures in Global and National Commerce Act (E-SIGN Act). For example, the CFPB reminds institutions that oral recordings obtained over the phone may authorize preauthorized electronic fund transfers under Regulation E, provided that the recordings also comply with E-SIGN requirements. The five page compliance bulletin provides a summary of the current law, highlights relevant supervisory findings and, significantly, outlines the CFPB’s expectations for entities obtaining consumer authorizations for preauthorizes electronic fund transfers.
Compliance Bulletin 2015-06 can be found at:http://files.consumerfinance.gov/f/201511_cfpb_compliance-bulletin-2015-06-requirements-for-consumer-authorizations-for-preauthorized-electronic-fund-transfers.pdf.