Implications of the Electronic Funds Transfer Act of 1978 : Preparations and Considerations

The second of a two-part "handbook" — the first has been simultaneously posted on author's SSRN page — this pithy article details the potential defenses available to financial institutions and the issues that all parties should be prepared to address when proposing or rebuffing a claim predicated on a violation of § 1693e of the Electronic Funds Transfer Act of 1978 ("EFTA"). The overview article outlined the general scheme governing electronic fund (or funds) transfers established by the EFTA, a statute passed as part of the Consumer Credit Protection Act, and then turned its attention to § 1693e, the lone EFTA section to deal with pre-authorized EFTs. This follow-up provides real-world instruction as to how courts and counsel can navigate a § 1693e claim and pinpoints six pressing issues too often — and too unwisely — overlooked in a case's infancy