Good Morning,

Online banking laws have reached the forefront of consumers' minds of
late mostly because the use of online banking has skyrocketed. Many of
us check our daily transactions and balances online several times
daily, to ensure our debits and credits have been properly recorded.
For the safety and protection of both consumers and the banking
institutions, there are online banking laws.

ATM and Overdraft Fees
Consumers have the option to participate in online banking overdraft
coverage or insurance. For example, a person might be able to set
aside money in a savings account with overdraft protection so that if
and when his checking account becomes negative, the banking
institution can take money from the savings account to cover the
overdraft amount. If the individual does not participate in overdraft
protection, per online banking laws, the bank may charge $20 for each
overdraft. The bank can also charge $20 for every day after the fifth
day that the consumer's account remains in negative balance.
Identity Theft
In a case where an individual may have an unauthorized debit from her
bank account, the bank must investigate this situation. Per online
banking laws, an individual with a fraudulent transaction on her bank
statement must make a written notification of this action to the bank
within 10 days. Once the bank receives the written notification, the
bank, per online banking laws, must investigate within 10 days. The
bank has 45 days to complete the investigation. At the completion of
the investigation, the bank will need to either credit the person's
account or withhold a maximum of $50 from the amount of the
transaction.

Consumer's Rights
Online banking laws include those that protect consumers' rights. For
example, a consumer has the right to stop payment of a pre-authorized
electronic fund transfer. The individual can do so by notifying the
financial institution, or bank, either verbally or in writing at least
three days before the scheduled transfer. In the situation where
someone has his car loan payment automatically deposited from his bank
account, that person can stop the automatic withdrawal if he contacts
the bank at least three days before the scheduled date of deposit.

@HG.org

Regards,
Srinivas Naik

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