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Question 198

To stop a payment of a preauthorized transfer, consumer must notify the institution or in writing at least:

    Correct Answer: A

    To stop a payment of a preauthorized transfer, the consumer must notify the institution orally or in writing at least three days before the transfer is to occur. This requirement ensures the institution has enough time to process the request and prevent the transfer.

Discussion
Cam22Option: A

The correct answer is A. Three business days before the scheduled date of the transfer, the consumer must notify the financial institution orally or in writing to stop payment of a preauthorized electronic fund transfer. This requirement gives the institution sufficient time to act on the consumer's request before the transfer occurs.