Recent Litigation On Preauthorized Electronic Transfers

LexisNexis (April 26, 2017, 1:48 PM EDT) -- Regulation E imposes several important compliance requirements on preauthorized transfers.  These requirements relate to authorization of the transfer, stopping payment, notice of amount, and notice of receipt.  Reg. E requires that authorization for preauthorized transfers from a consumer's deposit account be obtained in a writing that is signed or similarly authenticated by the consumer. Moreover, the person who obtains the authorization must provide the consumer with a copy of it.  This requirement is roughly equivalent to that set forth in the NACHA rules, and complying with...
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