What is the Electronic Fund Transfer Act (EFTA)?
The Electronic Fund Transfer Act is a U.S. law enacted in 1978 to protect consumers who use electronic means to manage their finances via such things as use of ATM, direct deposits, online payment of bills, payments by phone, internet banking, debit cards and electronic check conversion. Under the EFTA, consumers can challenge errors and have them corrected. EFTA preempts State law where inconsistent.
Financial institutions are required by the EFTA to, among other things, inform consumers of the circumstances under which they would share information with third parties.