Refer to Reg E, 205.10(3)
(e) Compulsory use--
(1) Credit. No financial institution or other person may condition an extension of credit to a consumer on the consumer's repayment by preauthorized electronic fund transfers, except for credit extended under an overdraft credit plan or extended to maintain a specified minimum balance in the consumer's account.
(2) Employment or government benefit. No financial institution or other person may require a consumer to establish an account for receipt of electronic fund transfers with a particular institution as a condition of employment or receipt of a government benefit.
First published on BankersOnline.com 12/12/11
Attorney Open Checking Account to Hold Net Funds?
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Question:
Which regulation prohibits the requirement from the bank to have loan payments automatically withdrawn from the customer's checking account?
Answer: