Under which act must banks provide a clear explanation of fees for international money transfers?

Under which act must banks provide a clear explanation of fees for international money transfers?

• A. Electronic Fund Transfer Act (EFTA)
• B. Truth in Lending Act
• C. Equal Credit Opportunity Act
• D. Fair Labor Standards Act

Answer: (A)

The Electronic Fund Transfer Act (EFTA) requires banks to provide consumers with specific information regarding electronic funds transfers, including international money transfers. This act is designed to protect consumers in transactions involving electronic payment methods. Under the EFTA, financial institutions must furnish a clear and comprehensive explanation of any fees associated with these transactions. This includes disclosures about the costs for sending money internationally, ensuring that consumers are aware of what they will be charged before they initiate a transfer. In contrast, the Truth in Lending Act primarily focuses on consumer credit products and ensures that consumers receive clear terms related to the cost of credit. The Equal Credit Opportunity Act is aimed at preventing discrimination in credit transactions. The Fair Labor Standards Act deals with labor issues like minimum wage and overtime pay and does not pertain to banking practices or consumer disclosures related to money transfers. Thus, the EFTA is the relevant legislation concerning transparency in fees for international money transfers.

The Electronic Fund Transfer Act (EFTA) requires banks to provide consumers with specific information regarding electronic funds transfers, including international money transfers. This act is designed to protect consumers in transactions involving electronic payment methods. Under the EFTA, financial institutions must furnish a clear and comprehensive explanation of any fees associated with these transactions. This includes disclosures about the costs for sending money internationally, ensuring that consumers are aware of what they will be charged before they initiate a transfer.

In contrast, the Truth in Lending Act primarily focuses on consumer credit products and ensures that consumers receive clear terms related to the cost of credit. The Equal Credit Opportunity Act is aimed at preventing discrimination in credit transactions. The Fair Labor Standards Act deals with labor issues like minimum wage and overtime pay and does not pertain to banking practices or consumer disclosures related to money transfers. Thus, the EFTA is the relevant legislation concerning transparency in fees for international money transfers.