Remaining cutting edge in the area of technology is critical in any industry, including in banking. For this reason, mobile and online banking are staples at just about all banking institutions in Massachusetts and elsewhere today. The question that many customers have, however, is how do commercial financial and banking laws apply to them? Banks that have not figured this out can easily find themselves becoming the subjects of business litigation.
Phone banking apps, just as mobile banking websites, can be used to access, transfer or store funds. When banks allow customers’ accounts in Massachusetts to be debited or credited using these devices, the requirements spelled out in the Electronic Fund Transfer Act and Regulation E must be followed. For instance, banks must offer their customers readily understandable, clear disclosures in writing.
In addition, the Federal Reserve Board Official Staff Commentary states that banks must make sure that any consumer who signs up for a banking service receives a disclosure regarding his or her new service, including an electronic financial service. Another important law that applies to banks using mobile banking or bank apps is the Expedited Funds Availability Act. This act presents requirements related to schedules for the availability of funds, the payment of interest and, again, policy disclosures.
For 100 years, we have helped banks and other financial institutions manage the complexities of commercial law. Since 1918, the attorneys of Seder & Chandler have excelled at facing complicated and fast-moving legal issues, from complex corporate law, commercial real estate law, estate planning, to acting as counsel for law matters business and personal. Contact us today to learn how our combination of traditional commitments and adaptivity has given us a legacy of a 100 years.