EFT (ELECTRONIC FUND TRANSFERS) AND THE PUBLIC INTEREST A REPORT OF THE NATIONAL COMMISSION OF ELECTRONIC FUND TRANSFERS

• NCJ Number: 48516
• Author(s): ANON
• Date Published: 1977
• Length: 169 pages
• Sale Source: Superintendent of Documents, GPO; National Institute of Justice/
• Publication Type: Legislative/Regulatory Material
• Language: English
• Country: United States of America

Annotation

SIX MAJOR AREAS OF INQUIRY ARE COVERED IN THIS REPORT: ELECTRONIC FUND TRANSFERS' EFFECT ON COMPETITION, THE PROTECTION OF TRANSACTIONS, SHARING OF SYSTEMS, EFFECTS ON MONETARY POLICY, GOVERNMENT OPERATIONS, TECHNOLOGY.

Abstract

CONGRESS ESTABLISHED THE NATIONAL COMMISSION ON ELECTRONIC FUND TRANSFERS TO CONDUCT AN INDEPTH STUDY IN ORDER TO LEARN MORE ABOUT THE EFFECT OF ELECTRONIC BANKING TECHNOLOGY, PARTICULARLY ELECTRONIC FUND TRANSFERS, ON BUSINESS AND CONSUMERS. THE COMMISSION REPORT DISCUSSES THE NEED TO PROTECT AGAINST DISCRIMINATION, THE NEED TO PROTECT CONSUMERS. THE COMMISSION REPORT DISCUSSES THE NEED TO PRESERVE COMPETITION AMONG FINANCIAL INSTITUTIONS AND OTHER BUSINESS ENTERPRISES USING SUCH SYSTEMS, THE NEED TO PROTECT AGAINST DISCRIMINATION. THE NEED TO PROTECT CONSUMERS AGAINST UNAUTHORIZED USE OF THEIR ACCOUNTS, THE IMPACT OF SUCH SYSTEMS UPON MONETARY POLICY, GOVERNMENT INVOLVEMENT IN ELECTRONIC FUNDS TRANSFER, AND THE NEED TO SPELL OUT LEGAL RIGHTS AND OBLIGATIONS OF ALL USERS. THE REPORT CONCLUDES THAT THE USE OF ELECTRONIC FUND TRANSFERS PROVIDES GREATER CONVENIENCE AND ALLOWS MORE FLEXIBILITY IN MOVING ASSESTS FROM ONE ACCOUNT OR SAVINGS INSTITUTION BE LIABLE FOR UNAUTHORIZED ACCOUNT OR INSTITUTION TO ANOTHER. HOWEVER, THE QUESTION OF CONSUMER PRIVACY AND ACCOUNT SECURITY IS A SERIOUS MATTER. TERMINAL MANUFACTURERS HAVE A VARIETY OF DEVICES TO PREVENT UNAUTHORIZED ENTRY INTO AN ACCOUNT. TO PROTECT CUSTOMERS, IT IS SUGGESTED THAT THE SAVINGS INSTITUTION BE LIABLE FOR UNAUTHORIZED ACCOUNT USE EXCEPT IN CASES OF CONSUMER NEGLIGENCE. THESE RULES WOULD BE SIMILAR TO THOSE WHICH GOVERN CREDIT CARDS. THE COMMISSION FEELS THAT THE REGULATION OF TERMINAL LOCATIONS NEED NOT BE AS STRICT AS THAT OF BRICK-ANDMORTAR BRANCHES, THAT SHARING WOULD BEST BE DECIDED ON A CASE-BY-CASE BASIS, THAT THE GOVERNMENT SHOULD OPERATE APPROPRIATE CLEARINGHOUSES TO EXPEDITE ELECTRONIC FUND TRANSFERRING, AND THAT THIS TECHNOLOGY MAY HAVE SIGNIFICANT EFFECTS ON MONETARY POLICY. IT IS CONCLUDED THAT THE TRUE EFFECTS OF THIS FORM OF BANKING WILL NOT BE KNOWN UNTIL THE PRACTICE BECOMES WIDESPREAD. APPENDIXES PROVIDE TECHNICAL DATA, A SUMMARY OF TESTIMONY BY EXPERTS APPEALING BEFORE THE COMMISSION, A RECORD OF COMMISSION VOTES, AND STATEMENTS BY COMMISSION MEMBERS ON SELECTED TOPICS. (GLR)