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Accepting Loan Payment via EFT

Answered by: 
Randy Carey
Richard Insley

Question: 
If we receive a loan payment via EFT what are our responsibilities, if any under Reg E? We do not hold the deposit account from where the payment came. We also do not process the loan payment directly.
Answer: 

Answer by Randy Carey: Regulation E only applies to the asset acccount and not the loan account.

Answer: 

Answer by Richard Insley: Your only duty under Regulation E is to refrain from requiring the borrower to make payments by EFT. You may offer this payment option and incent borrowers to use EFTs, so long as they are free to choose otherwise.

First published on BankersOnline.com 4/18/11

First published on 04/18/2011

Filed under: 
Compliance
Filed under compliance as: 
EFT

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