Understanding the Electronic Funds Transfer Act

The video tutorial explains consumer protection against unauthorized electronic fund transfers, focusing on liability limits and reporting timelines. It covers the role of the Federal Reserve Board in regulating financial institutions and account holders, detailing the procedures for investigating and resolving unauthorized transactions. The tutorial emphasizes the importance of timely reporting to limit liability and outlines the rights and protections available to consumers.

What is the primary role of the Federal Reserve Board in electronic fund transfers?

• To set interest rates for electronic transactions

• To manage all financial institutions

• To govern the procedures protecting consumers

• To issue debit cards to consumers

If a consumer reports a fraudulent transaction within two days, what is the maximum liability they face?

• $50

• $100

• $500

• No liability

What happens if a consumer reports an unauthorized transaction after 60 days?

• Their liability is limited to $50

• Their liability is limited to $500

• There is no limit to their liability

• They are not liable at all

How long do financial institutions have to resolve a reported unauthorized transaction?

• 10 to 20 days

• 30 to 60 days

• 45 to 90 days

• 120 days

What must financial institutions do if they cannot resolve a dispute within the initial investigation period?

• Temporarily refund the disputed amount

• Permanently refund the disputed amount

• Ignore the dispute

• Charge an additional fee