15-U.S.C.-1693H
§1693H – Liability of Financial Institutions
Pathway
Title 15 > Chapter 41 > Subchapter VI > Section 1693h
Details
- Reference: Section 1693h
- Legend: §1693H – Liability of Financial Institutions
- USCode Year: 2013
Provision Content
(a) Action or failure to act proximately causing damages
Subject to subsections (b) and (c) of this section, a financial institution shall be liable to a consumer for all damages proximately caused by—
(1) the financial institutions failure to make an electronic fund transfer, in accordance with the terms and conditions of an account, in the correct amount or in a timely manner when properly instructed to do so by the consumer, except where—
(A) the consumers account has insufficient funds;
(B) the funds are subject to legal process or other encumbrance restricting such transfer;
(C) such transfer would exceed an established credit limit;
(D) an electronic terminal has insufficient cash to complete the transaction; or
(E) as otherwise provided in regulations of the Bureau;
(2) the financial institutions failure to make an electronic fund transfer due to insufficient funds when the financal institution failed to credit, in accordance with the terms and conditions of an account, a deposit of funds to the consumers account which would have provided sufficient funds to make the transfer, and
(3) the financial institutions failure to stop payment of a preauthorized transfer from a consumers account when instructed to do so in accordance with the terms and conditions of the account.
(b) Acts of God and technical malfunctions
A financial institution shall not be liable under subsection (a)(1) or (2) of this section if the financial institution shows by a preponderance of the evidence that its action or failure to act resulted from—
(1) an act of God or other circumstance beyond its control, that it exercised reasonable care to prevent such an occurrence, and that it exercised such diligence as the circumstances required; or
(2) a technical malfunction which was known to the consumer at the time he attempted to initiate an electronic fund transfer or, in the case of a preauthorized transfer, at the time such transfer should have occurred.
(c) Intent
In the case of a failure described in subsection (a) of this section which was not intentional and which resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid any such error, the financial institution shall be liable for actual damages proved.
(d) Exception for damaged notices
If the notice required to be posted pursuant to section 1693b(d)(3)(B)(i) of this title by an automated teller machine operator has been posted by such operator in compliance with such section and the notice is subsequently removed, damaged, or altered by any person other than the operator of the automated teller machine, the operator shall have no liability under this section for failure to comply with section 1693b(d)(3)(B)(i) of this title.
(Pub. L. 90–321, title IX, §910, as added Pub. L. 95–630, title XX, §2001, Nov. 10, 1978, 92 Stat. 3735; amended Pub. L. 106–102, title VII, §705, Nov. 12, 1999, 113 Stat. 1465; Pub. L. 111–203, title X, §1084(1), July 21, 2010, 124 Stat. 2081.)
Amendments
2010—Subsec. (a)(1)(E). Pub. L. 111–203 substituted Bureau for Board.
1999—Subsec. (d). Pub. L. 106–102 added subsec. (d).
Effective Date of 2010 Amendment
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.
U.S. Encyclopedia of Law Coverage
15-U.S.C.-1692B in the Legal Encyclopedia: Trade Law
In this entry about 15-U.S.C.-1692B, find legal reference material, bibliographies and premiere content related to trade law in the American Encyclopedia of Law, presenting a comprehensive view of the United States trade law-specific issues, written by authorities in the field.
Subchapter VI – Electronic Fund Transfers in the Legal Encyclopedia: Consumer Credit Protection
In this entry about Subchapter VI – Electronic Fund Transfers, find legal reference material, bibliographies and premiere content related to consumer credit protection in the American Encyclopedia of Law, presenting a comprehensive view of the United States consumer credit protection-specific issues, written by authorities in the field.
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