Regulation E is a federal regulation that applies to electronic fund transfers (EFTs). EFTs are financial transactions that involve the transfer of funds from one account to another using electronic means, such as a debit card or an electronic check.
Regulation E sets out the rights and responsibilities of consumers and financial institutions when it comes to EFTs. It establishes rules for how financial institutions must handle EFTs, including how they must disclose information to consumers, how they must handle errors or unauthorized transactions, and how they must resolve disputes with consumers.
One of the main purposes of Regulation E is to protect consumers who use EFTs. It requires financial institutions to provide consumers with clear and accurate information about their EFTs, and it gives consumers certain rights and protections when it comes to errors and unauthorized transactions. For example, if a consumer discovers an error on their bank statement, they have the right to dispute the error and have it corrected by the financial institution.
Overall, Regulation E is an important tool for protecting consumers who use electronic financial services, and it helps ensure that EFTs are conducted fairly and transparently.
This page was last updated on January 3, 2023.