PRINTER'S NO. 33
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
28
Session of
2015
INTRODUCED BY THOMAS, JANUARY 21, 2015
REFERRED TO COMMITTEE ON COMMERCE, JANUARY 21, 2015
AN ACT
Providing guidelines for preauthorized electronic funds
transfers for financial institutions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Preauthorized
Electronic Funds Transfers Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Consumer." An individual holding an active banking account
with a financial institution within this Commonwealth.
"Department." The Department of Banking and Securities of
the Commonwealth.
"Financial institution." A bank, savings association, credit
union or any other person operating within this Commonwealth
that directly or indirectly holds an account belonging to a
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consumer or that issues an access device and agrees with a
consumer to provide electronic funds transfer services.
"Preauthorized electronic funds transfer." An electronic
funds transfer authorized in advance to recur at substantially
regular intervals.
Section 3. Preauthorized electronic funds transfers.
(a) Requirements.--
(1) A preauthorized electronic funds transfer from a
consumer's account must be authorized by the consumer in
writing, and the financial institution shall provide a copy
of the authorization to the consumer when made.
(2) A financial institution shall provide a consumer
with reasonable advance notice of the pending transfer so as
to provide, if necessary, adequate time to stop payment of a
preauthorized electronic funds transfer.
(b) Stop payment.--
(1) A consumer may stop payment of a preauthorized
electronic funds transfer by notifying the financial
institution orally or in writing, at any time, up to three
business days preceding the scheduled date of such transfer.
(2) The financial institution may require written
confirmation to be provided to it within 14 days of an oral
notification if, when the oral notification is made, the
consumer is advised of the notification requirement and the
address to which such confirmation should be sent is
provided.
Section 4. Regulations.
The department may promulgate regulations to administer this
act. Until final regulations are adopted, the department shall
regulate financial institutions under interim guidelines
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consistent with this act.
Section 5. Effective date.
This act shall take effect in 60 days.
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