article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Electronic Funds Transfer Equal Consumer Protection Act''. SEC. 2. EQUAL CONSUMER PROTECTION. (a) Definition of Error.--Section 908(f) of the Electronic Fund Transfer Act (15 U.S.C. 1693f(f)) is amended-- (1) by redesignating paragraphs (5) and (6) as paragraphs (6) and (7); and (2) by inserting after paragraph (4) the following new paragraphs: ``(5) an electronic fund transfer affecting the customer's account in connection with a transaction for goods or services not accepted by the customer or a designee of the customer or not delivered to the customer or any such designee, or that is not in accordance with the agreement made at the time of a transaction;''. (b) Covered Transactions.--Section 903(6) of the Electronic Fund Transfer Act (15 U.S.C. 1693a(6)) is amended by inserting after the 2nd sentence the following new sentence: ``Such term also includes any transaction initiated through an electronic terminal, telephonic instrument, or computer, including transactions initiated through the use of a check card or a card commonly referred to as a debit card, without regard to the manner in which the third party conveys the order, instruction, or authorization to the financial institution to credit or debit the consumer's account at the financial institution.''. (c) Prompt Provisional Recredit Required.--Section 908(c) of the Electronic Fund Transfer Act (15 U.S.C. 1693f(c)) is amended by striking the first sentence and inserting the following new sentence: ``Prompt Provisional Recredit Required.--If a financial institution receives notice of an error in the manner and within the time period specified in subsection (a), the financial institution shall, within 1 business day after receiving such notice, provisionally recredit the consumer's account for the amount alleged to be in error, subject to section 909, including interest where applicable, pending the conclusion of the investigation by the financial institution under subsection (a) and the determination of whether an error has occurred.''. (d) Prompt Error Resolution Required.--Section 908(a) of the Electronic Fund Transfer Act (15 U.S.C. 1693f(a) is amended to read as follows: ``(a) Investigation of Reported Error Required.-- ``(1) In general.--If, before the end of the 60-day period beginning on the date a financial institution transmits consumer documentation pursuant to subsection (a), (c), or (d) of section 906 or a notice relating to a consumer account pursuant to section 906(b) to a consumer, the financial institution receives oral or written notice in which the consumer-- ``(A) provides sufficient information to allow the financial institution to identify the name and account number of the consumer; ``(B) indicates the consumer's belief that the documentation transmitted, or the consumer's account to which the notice related, contains an error and the amount of such error; and ``(C) indicates the reasons for the consumer's belief (where applicable) that an error has occurred, the financial institution shall investigate the alleged error, determine whether an error has occurred, and report or mail the results of such investigation and determination to the consumer within 1 business day. ``(2) Written confirmation of oral notice.-- ``(A) In general.--In any case in which a consumer provides oral notice of an error to a financial institution in accordance with paragraph (1), the financial institution may require written confirmation to be provided to the institution by the consumer if the financial institution-- ``(i) advises the consumer of such requirement at the time the oral notice is made and the manner in which the confirmation shall be provided; and ``(ii) provides the consumer with the address to which such confirmation should be sent. ``(B) Timely receipt of consumer statement.--If a requirement by a financial institution for a written confirmation pursuant to subparagraph (A) of an oral notice by a consumer may be satisfied by a written statement prepared and submitted by the consumer, such confirmation shall be timely if the financial institution receives such confirmation before the end of the 15-day period beginning on the date the financial institution provided the notice to the consumer under subparagraph (A). ``(C) Timely return of financial institution's confirmation form.--If a requirement by a financial institution for a written confirmation pursuant to subparagraph (A) of an oral notice by a consumer may be only be confirmed by the consumer's signature on a written confirmation form sent by the financial institution to the consumer for such purpose-- ``(i) such confirmation shall be timely if the financial institution receives such confirmation form from the consumer with the consumer's signature before the end of the 30- day period beginning on the date the financial institution provided the notice to the consumer under subparagraph (A); and ``(ii) such confirmation shall be deemed to have been timely received if the consumer fails to receive the written confirmation form to sign from the financial institution before the end of the 20-day period beginning on such date. ``(3) Failure to timely confirm.--If a financial institution which requires written confirmation of a consumer's oral notice of an error in accordance with paragraph (2)(A) does not receive such confirmation in accordance with subparagraph (B) or (C)(i) of paragraph (2) before the end of the applicable period described in the appropriate subparagraph, the financial institution-- ``(A) need not provisionally recredit the consumer's account in accordance with subsection (c) ; and ``(B) shall not be liable under subsection (e). ``(4) Burden of proof.--In any investigation or resolution of an alleged error under this section, the burden of proof is on the financial institution to show that an error did not occur.''. (e) Technical and Conforming Amendments.-- (1) Section 908(b) of the Electronic Fund Transfer Act (15 U.S.C. 1693f(b)) is amended by inserting ``subsection (c) and'' after ``, subject to''. (2) The first sentence of section 908(d) of the Electronic Fund Transfer Act (15 U.S.C. 1693f(d)) is amended by striking ``or (c)''. (3) Section 908(e)(1) of the Electronic Fund Transfer Act (15 U.S.C. 1693f(e)(1)) is amended by striking ``ten-day period'' and inserting ``1-day period''.
summary: Electronic Funds Transfer Equal Consumer Protection Act - Amends the the Electronic Fund Transfer Act to treat as an error any electronic fund transfer affecting the customer's account regarding a transaction for goods or services not accepted by or not delivered to the customer, or not in accordance with the agreement made at the time of the transaction. Redefines electronic fund transfer to cover any transaction initiated through an electronic terminal, telephonic instrument, or computer, including transactions initiated through the use of a check card or a debit card. Revises requirements for a financial institution's discretionary provisional recredit of a consumer's account after receiving notice of an error. Makes such a provisional recredit mandatory, within one business day after receipt of such a notice. Revises requirements for prompt resolution of errors to authorize a financial institution to require a consumer to submit written confirmation of an oral error notice before it recredits provisionally the consumer's account.