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 the 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 the 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
consistent with this act.
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