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Question 195

During a EFT, if the institution determines that no error has occurred or that an error occurred in a manner or amount different than the alleged error, it:

    Correct Answer: A, B

    During an Electronic Funds Transfer (EFT), if the institution determines that no error has occurred or that an error occurred in a manner or amount different than the alleged error, it must notify the consumer in writing of the date and amount of the debit to the account and the fact that the institution will continue to honor checks and preauthorized transfers payable to third parties for seven business days. Additionally, the institution must promptly provide, upon request, copies of the documentation on which it relied to determine that no error occurred. These measures ensure transparency and consumer protection. Option A and B describe these requirements accurately. Option C, which involves paying only items that would have been paid if the provisionally credited funds had not been debited, does not fit the specific requirements outlined in this context.

Discussion
Cam22Option: B

When an institution determines that no error has occurred during an Electronic Funds Transfer (EFT) or that an error occurred in a manner or amount different than alleged, it is required to promptly provide, upon request, copies of the documentation on which the institution relied to make that determination. This ensures transparency and allows the consumer to review the information used by the institution in its decision-making process. Option B accurately describes this requirement.