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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY THOMAS, JOSEPHS, MYERS, SIPTROTH, SWANGER AND YOUNGBLOOD, JUNE 30, 2009 |
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| REFERRED TO COMMITTEE ON COMMERCE, JUNE 30, 2009 |
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| AN ACT |
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1 | Providing guidelines for preauthorized electronic funds |
2 | transfers for financial institutions. |
3 | The General Assembly of the Commonwealth of Pennsylvania |
4 | hereby enacts as follows: |
5 | Section 1. Short title. |
6 | This act shall be known and may be cited as the Preauthorized |
7 | Electronic Funds Transfers Act. |
8 | Section 2. Definitions. |
9 | The following words and phrases when used in this act shall |
10 | have the meanings given to them in this section unless the |
11 | context clearly indicates otherwise: |
12 | "Consumer." An individual holding an active banking account |
13 | with a financial institution within this Commonwealth. |
14 | "Department." The Department of Banking of the Commonwealth. |
15 | "Financial institution." A bank, savings association, credit |
16 | union or any other person operating within this Commonwealth |
17 | that directly or indirectly holds an account belonging to a |
18 | consumer or that issues an access device and agrees with a |
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1 | consumer to provide electronic funds transfer services. |
2 | "Preauthorized electronic funds transfer." An electronic |
3 | funds transfer authorized in advance to recur at substantially |
4 | regular intervals. |
5 | Section 3. Preauthorized electronic funds transfers. |
6 | (a) Requirements.-- |
7 | (1) A preauthorized electronic funds transfer from a |
8 | consumer's account must be authorized by the consumer in |
9 | writing, and the financial institution shall provide a copy |
10 | of the authorization to the consumer when made. |
11 | (2) A financial institution shall provide a consumer |
12 | with reasonable advance notice of the pending transfer so as |
13 | to provide, if necessary, adequate time to stop payment of a |
14 | preauthorized electronic funds transfer. |
15 | (b) Stop payment.-- |
16 | (1) A consumer may stop payment of a preauthorized |
17 | electronic funds transfer by notifying the financial |
18 | institution orally or in writing at any time up to three |
19 | business days preceding the scheduled date of such transfer. |
20 | (2) The financial institution may require written |
21 | confirmation to be provided to it within 14 days of an oral |
22 | notification if, when the oral notification is made, the |
23 | consumer is advised of such requirement and the address to |
24 | which such confirmation should be sent. |
25 | Section 4. Regulations. |
26 | The department may promulgate regulations to administer this |
27 | act. Until final regulations are adopted, the department shall |
28 | regulate financial institutions under interim guidelines |
29 | consistent with this act. |
30 | Section 5. Effective date. |
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1 | This act shall take effect in 60 days. |
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