CFPB Reiterates Applicability of EFTA to Government Benefit Accounts

The CFPB recently issued a compliance bulletin reiterating that the Electronic Fund Transfer Act (EFTA), including the compulsory use provision, applies to government benefit accounts.  The compulsory use provision of the EFTA provides that a consumer may not be required to establish an account for receiving electronic fund transfers with a particular financial institution as a condition of receiving government benefits.

The Compliance Bulletin also reiterates that the CFPB has authority to enforce the EFTA against any person subject to the EFTA, including financial institutions.