Reg E ( EFTA Policy )

Overview

Waya Limited Inc. (“Waya” or the “Company”) has developed this Policy to comply with the Electronic Fund Transfer Act (“EFTA”), which establishes the basic rights, liabilities, and responsibilities of consumers who use electronic fund transfer and remittance transfer services and of financial institutions or other persons that offer these services.

The Electronic Funds Transfer Act and its implementing Regulation E (collectively, “Reg E”) establish the basic rights, liabilities, and responsibilities of consumers who use electronic fund transfer (“EFT”) services and of financial institutions or other persons that offer these services. The primary objective of the act and regulation is the protection of individual consumers engaging in EFTs.  Reg E sets forth specific disclosure (initial, periodic statement, change in terms, receipts, etc.) content and timing requirements, issuance of access devices, prepaid card requirements, stop payment rights on Pre-authorized EFTs, and error resolution requirements.  

Policy Statement

The Company provides ACH, wire transfers, debit cards and electronic checks 

Reg E Subpart A applies to electronic fund transfers (“EFTs”). Reg E Subpart B applies to remittance transfers, which is applicable to Waya. 

Waya is committed to protecting the rights of consumers who use the EFT services that the Company offers. 

Responsibilities

Chief Compliance Officer

The CCO, or designee (individually and collectively, referred to herein as Compliance) will report directly to the executive team and is responsible for owning, maintaining and enforcing this Policy.  Compliance institutes proper controls that ensure the requirements of this Policy are followed, and identifies and ensures Company managers and employees who are affected by this policy are made aware of its requirements. Compliance also ensures all appropriate personnel have access to resources necessary to comply with this Policy.

Key Definitions 

  1. Electronic Fund Transfer or EFT. Any transfer of funds that is initiated through an electronic terminal (point-of-sale), telephone, computer, magnetic tape or any other electronic means (such as Automated Clearing House (ACH) transactions) for the purpose of ordering, instructing or authorizing a financial institution to debit or credit a consumer’s account.  EFT does not include fund transfers by check, draft or similar paper instrument, or a wire or similar transfer.  
  1. Account. A demand deposit (checking), savings or other consumer asset account (other than an occasional or incidental credit balance in a credit plan) held directly or indirectly by a financial institution and established primarily for personal, family, or household purposes and does not include an account held under a bona fide trust agreement. 
  1. Access Device. A card, code, or other means of access to a consumer’s account, or any combination thereof, that may be used by the consumer to initiate electronic fund transfers. 
  1. Pre-authorized EFT. An EFT authorized in advance to recur at substantially regular intervals.
  1. Business day. Any day on which the offices of the consumer’s financial institution are open to the public for carrying on substantially all business functions.

Deposit and Payment Requirements 

Initial Disclosures 

Disclosures required under Regulation E are to be clear and readily understandable, in writing, and in a form that the customer may keep.

Initial written disclosures will be made at the time a customer contracts for an EFT service or prior to the time of the first EFT involving the customer’s account. If an EFT service is added to a customer’s account and is subject to terms and conditions different from those described in the initial disclosures, the Company will provide disclosures for the new service.

The contents of such disclosures will include, as they may apply:

  • A summary of the customer’s liability under Regulation E and under state or other applicable law or agreement for unauthorized EFTs;
  • The telephone number and address for reporting a lost or stolen access device or possible unauthorized transfer;
  • The Company’s business days;
  • The type of EFTs that the customer may make and any limitations on the frequency and dollar amount of transfers;
  • Any fees the Company imposes for EFTs or for the right to make transfers;
  • A summary of the customer’s right to receipts and periodic statements, including the extent and/or limits of confidentiality;
  • A summary of the customer’s right to stop payment of a preauthorized EFT and the procedure for placing a stop-payment order;
  • A summary of our company’s liability to the customer for failure to make or to stop certain transfers;
  • The circumstances under which, in the ordinary course of business, the Company may provide information concerning the customer’s account to third parties;
  • A notice that is substantially similar to the model form in the regulation concerning error resolution; and 
  • If applicable, a  notice that a fee may be imposed by an ATM operator when the customer initiates an EFT or makes a balance inquiry, and by any network used to complete the transaction.

Change in Terms  

If the Company contemplates a change in terms, it will provide consumers a written or electronic notice at least 21 days before the effective date of any change in terms that results in any of the following:

  • Increased fees or charges; 
  • Increased liability for the consumer; 
  • Fewer types of available EFTs; or 
  • Stricter limitations on the frequency or dollar amounts of transfers. 

At times, the Company may need to implement changes to maintain or restore the security of an EFT system or account.  In such instances, the Company is not required to provide consumers with notice prior to the change.  However, if the change is to be made permanent, the Company will provide notice to the consumer on or with the next periodic statement or within 30 days, unless the Company determines that any disclosures would jeopardize the security of the system or account.

Periodic Statements 

Waya will provide the customer with a periodic statement for each monthly cycle where an EFT occured, or at least quarterly if an EFT did not occur. For each EFT made during the statement period, the periodic statement the Company provides will include, as applicable: 

  • The amount of the transfer; 
  • The date the transfer was credited or debited to the consumer’s account; 
  • The type of transfer and type of account to or from which funds were transferred; 
  • For transfer initiated by the consumer at the electronic terminal, the location of that terminal (except for a deposit of cash or a check, draft, or similar paper instrument); 
  • The name of any third party to or from whom funds were transferred; 
  • The number of the account; 
  • The amount of any fees assessed against the account during the statement period for EFTs, the right to make transfers, or account maintenance; 
  • The balance in the account at the beginning and at the close of the statement period; 
  • Address and telephone number to be used by the consumer for inquiries or notice of errors; and 
  • A telephone number the consumer may call to ascertain whether the preauthorized transfers to the consumer’s account have occured. 

If the consumer notifies Waya within two business days after learning of the loss or theft of the access device, the consumer’s liability shall not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the Company.

If the consumer fails to notify Waya within two business days after learning of the loss or theft of the access device, the consumer’s liability shall not exceed the lesser of $500 or the sum of:

  • $50 or the amount of unauthorized transfers that occur within the two business days, whichever is less; and
  • The amount of unauthorized transfers that occur after the close of two business days and before notice to the Company, provided the Company establishes that these transfers would not have occurred had the consumer notified the Company within that two-day period.

If a statement shows unauthorized transfers without an access device, consumers must notify the Company within 60 days of statement delivery.

  • If the customer notifies Waya within 60 days, there is NO customer liability. 
  • If the customer notifies Waya after 60 days, there is no customer liability for the first 60 days, but customer liability is unlimited during the time period between 60 days and notification.

Example: A consumer’s account is electronically debited for $200 without the consumer’s authorization. If the consumer notifies the Company within 60 days of the transmittal of the periodic statement that shows the unauthorized transfer, the consumer has no liability. However, if in addition to the $200, the consumer’s account is debited for a $400 unauthorized transfer on the 61st day and the consumer fails to notify the Company of the first unauthorized transfer until the 62nd day, the consumer may be liable for the full $400.

If a periodic statement shows an unauthorized transfer made with a lost or stolen debit card, the consumer must notify the Company within 60 calendar days after the periodic statement was sent; otherwise, the consumer faces unlimited liability for all unauthorized transfers made after the 60-day period. The consumer’s liability for unauthorized transfers before the statement is sent, and up to 60 days following, is determined based on the first two tiers of liability: up to $50 if the consumer notifies the Company within two business days of learning of the loss or theft of the card and up to $500 if the consumer notifies the Company after two business days of learning of the loss or theft.

Preauthorized Transfers 

Preauthorized electronic transfers from a consumer’s account may be authorized only by a writing signed or similarly authenticated by the consumer. Waya will provide a copy of the authorization to the consumer. 

When an account is scheduled to be credited by a preauthorized EFT from the same payor at least once every 60 days, Waya must provide some form of notice to the consumer so that the consumer can find out whether the transfer occurred. Waya must either: 

  • Provide the consumer oral or written notice within two business days after preauthorized transfer occurs; 
  • Provide the consumer oral or written notice, within two business days after the preauthorized transfer was scheduled to occur, if the transfer did not occur; or 
  • Provide a readily available telephone line that the consumer may call to determine whether the transfer occurred and disclose the telephone number on the initial disclosure of account terms and on each periodic statement.

Notice of Transfers Varying in Amount 

If a preauthorized electronic fund transfer from the consumer‘s account will vary in amount from the previous transfer under the same authorization or from the preauthorized amount, Waya will send the consumer a written notice of the amount and date of the transfer at least 10 days before the scheduled date of transfer.

Procedures for Resolving Errors 

If a consumer identifies a potential error related to an electronic fund transfer (e.g. ACH or preauthorized transfer), Waya’s Operations team will review the circumstances of the request and notify Compliance of the dispute. Waya will respond to the consumer within 10 business days unless notice is provided to the consumer within 10 business days that additional time is needed to research the dispute. In any event, disputes must be resolved no later than 45 days after receipt. The response to the customer will include all applicable information that supports the Company’s conclusion such as the end result of the research, whether an error was made, and any remediation associated with the error. Please see below for additional details related to timing, provisional credits, and notifications. 

Applicability / Definitions

These requirements only apply if Waya is notified not later than 60 days after delivering a periodic statement that first reflects the error. The term “error” includes but is not limited to:

  • An unauthorized electronic fund transfer;
  • An incorrect electronic fund transfer to or from the consumer’s account;
  • The omission of an electronic fund transfer from a periodic statement;
  • A computational or bookkeeping error made by Waya relating to an electronic fund transfer;
  • The consumer’s receipt of an incorrect amount of money from an electronic terminal;

The term “error” does not include:

  • A routine inquiry about the consumer’s account balance;
  • A request for information for tax or other recordkeeping purposes; or
  • A request for duplicate copies of documentation.

Timeline / Process

Waya must promptly investigate any notice from a customer by phone, in writing, or through the mobile application of an error that:

  • Is received not later than 60 days after sending a periodic statement, or other documentation that first reflected the error;
  • Allows the Company to properly identify the member’s name and account number; and
  • Indicates why the member believes the error exists and the type, date, and amount of error (to the extent possible the member can provide those details.

Upon receipt of the notice of the error, Waya must: 

If able to finish investigation within 10 business days

TaskTimeline
Complete Investigation Within 10 business days
Report results to customer Within 3 business days after completing investigation
If necessary, correct the errorWithin 1 business day after determining error occurred 

If NOT able to finish investigation within 10 business days

TaskTimeline
Provisionally credit funds to customer’s account (member must have full use of funds)Within 10 business days
Provide notice of provisional credit (must include amount and date)Within 2 business days of the credit
Complete investigationWithin 45 calendar days of error notification
Report results to the customer (including notice that provisional credit is final, if applicable)Within 3 business days after completing investigation
If necessary, correct the errorWithin 1 business day after determining error occurred

If our investigation reveals no error occurred or different error than claimed (applicable to both 10 and 45 day timelines)

TaskTimeline
Deliver written explanation of the findings, including a notice of the customer’s right to request documents we relied on in making the determinationWithin 3 business days after completing investigation
Notify customer of the amount of the date and amount of debitingPromptly upon debiting the provisional credit amount
Notify customer that we will honor payments and preauthorized transfers from their account for five business days after the notificationPromptly upon debiting the provisional credit amount

Training 

The Company will train all employees on EFTA each calendar year, and monitor and track completion of this training.  Other periodic or ad hoc trainings may be added as required.

Record Retention

Waya will retain evidence of compliance with these requirements imposed by Reg E for a period of not less than two years from the date disclosures are required to be made or action is required to be taken.

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