To amend the Electronic Fund Transfer Act to provide similar protections under that Act for consumers as apply under the Truth in Lending Act, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electronic Funds Transfer Equal 
Consumer Protection Act''.

SEC. 2. EQUAL CONSUMER PROTECTION.

    (a) Definition of Error.--Section 908(f) of the Electronic Fund 
Transfer Act (15 U.S.C. 1693f(f)) is amended--
            (1) by redesignating paragraphs (5) and (6) as paragraphs 
        (6) and (7); and
            (2) by inserting after paragraph (4) the following new 
        paragraphs:
            ``(5) an electronic fund transfer affecting the customer's 
        account in connection with a transaction for goods or services 
        not accepted by the customer or a designee of the customer or 
        not delivered to the customer or any such designee, or that is 
        not in accordance with the agreement made at the time of a 
        transaction;''.
    (b) Covered Transactions.--Section 903(6) of the Electronic Fund 
Transfer Act (15 U.S.C. 1693a(6)) is amended by inserting after the 2nd 
sentence the following new sentence: ``Such term also includes any 
transaction initiated through an electronic terminal, telephonic 
instrument, or computer, including transactions initiated through the 
use of a check card or a card commonly referred to as a debit card, 
without regard to the manner in which the third party conveys the 
order, instruction, or authorization to the financial institution to 
credit or debit the consumer's account at the financial institution.''.
    (c) Prompt Provisional Recredit Required.--Section 908(c) of the 
Electronic Fund Transfer Act (15 U.S.C. 1693f(c)) is amended by 
striking the first sentence and inserting the following new sentence: 
``Prompt Provisional Recredit Required.--If a financial institution 
receives notice of an error in the manner and within the time period 
specified in subsection (a), the financial institution shall, within 1 
business day after receiving such notice, provisionally recredit the 
consumer's account for the amount alleged to be in error, subject to 
section 909, including interest where applicable, pending the 
conclusion of the investigation by the financial institution under 
subsection (a) and the determination of whether an error has 
occurred.''.
    (d) Prompt Error Resolution Required.--Section 908(a) of the 
Electronic Fund Transfer Act (15 U.S.C. 1693f(a) is amended to read as 
follows:
    ``(a) Investigation of Reported Error Required.--
            ``(1) In general.--If, before the end of the 60-day period 
        beginning on the date a financial institution transmits 
        consumer documentation pursuant to subsection (a), (c), or (d) 
        of section 906 or a notice relating to a consumer account 
        pursuant to section 906(b) to a consumer, the financial 
        institution receives oral or written notice in which the 
        consumer--
                    ``(A) provides sufficient information to allow the 
                financial institution to identify the name and account 
                number of the consumer;
                    ``(B) indicates the consumer's belief that the 
                documentation transmitted, or the consumer's account to 
                which the notice related, contains an error and the 
                amount of such error; and
                    ``(C) indicates the reasons for the consumer's 
                belief (where applicable) that an error has occurred,
        the financial institution shall investigate the alleged error, 
        determine whether an error has occurred, and report or mail the 
        results of such investigation and determination to the consumer 
        within 1 business day.
            ``(2) Written confirmation of oral notice.--
                    ``(A) In general.--In any case in which a consumer 
                provides oral notice of an error to a financial 
                institution in accordance with paragraph (1), the 
                financial institution may require written confirmation 
                to be provided to the institution by the consumer if 
                the financial institution--
                            ``(i) advises the consumer of such 
                        requirement at the time the oral notice is made 
                        and the manner in which the confirmation shall 
                        be provided; and
                            ``(ii) provides the consumer with the 
                        address to which such confirmation should be 
                        sent.
                    ``(B) Timely receipt of consumer statement.--If a 
                requirement by a financial institution for a written 
                confirmation pursuant to subparagraph (A) of an oral 
                notice by a consumer may be satisfied by a written 
                statement prepared and submitted by the consumer, such 
                confirmation shall be timely if the financial 
                institution receives such confirmation before the end 
                of the 15-day period beginning on the date the 
                financial institution provided the notice to the 
                consumer under subparagraph (A).
                    ``(C) Timely return of financial institution's 
                confirmation form.--If a requirement by a financial 
                institution for a written confirmation pursuant to 
                subparagraph (A) of an oral notice by a consumer may be 
                only be confirmed by the consumer's signature on a 
                written confirmation form sent by the financial 
                institution to the consumer for such purpose--
                            ``(i) such confirmation shall be timely if 
                        the financial institution receives such 
                        confirmation form from the consumer with the 
                        consumer's signature before the end of the 30-
                        day period beginning on the date the financial 
                        institution provided the notice to the consumer 
                        under subparagraph (A); and
                            ``(ii) such confirmation shall be deemed to 
                        have been timely received if the consumer fails 
                        to receive the written confirmation form to 
                        sign from the financial institution before the 
                        end of the 20-day period beginning on such 
                        date.
            ``(3) Failure to timely confirm.--If a financial 
        institution which requires written confirmation of a consumer's 
        oral notice of an error in accordance with paragraph (2)(A) 
        does not receive such confirmation in accordance with 
        subparagraph (B) or (C)(i) of paragraph (2) before the end of 
        the applicable period described in the appropriate 
        subparagraph, the financial institution--
                    ``(A) need not provisionally recredit the 
                consumer's account in accordance with subsection (c) ; 
                and
                    ``(B) shall not be liable under subsection (e).
            ``(4) Burden of proof.--In any investigation or resolution 
        of an alleged error under this section, the burden of proof is 
        on the financial institution to show that an error did not 
        occur.''.
    (e) Technical and Conforming Amendments.--
            (1) Section 908(b) of the Electronic Fund Transfer Act (15 
        U.S.C. 1693f(b)) is amended by inserting ``subsection (c) and'' 
        after ``, subject to''.
            (2) The first sentence of section 908(d) of the Electronic 
        Fund Transfer Act (15 U.S.C. 1693f(d)) is amended by striking 
        ``or (c)''.
            (3) Section 908(e)(1) of the Electronic Fund Transfer Act 
        (15 U.S.C. 1693f(e)(1)) is amended by striking ``ten-day 
        period'' and inserting ``1-day period''.

Summary: Electronic Funds Transfer Equal Consumer Protection Act - Amends the the Electronic Fund Transfer Act to treat as an error any electronic fund transfer affecting the customer's account regarding a transaction for goods or services not accepted by or not delivered to the customer, or not in accordance with the agreement made at the time of the transaction. Redefines electronic fund transfer to cover any transaction initiated through an electronic terminal, telephonic instrument, or computer, including transactions initiated through the use of a check card or a debit card. Revises requirements for a financial institution's discretionary provisional recredit of a consumer's account after receiving notice of an error. Makes such a provisional recredit mandatory, within one business day after receipt of such a notice. Revises requirements for prompt resolution of errors to authorize a financial institution to require a consumer to submit written confirmation of an oral error notice before it recredits provisionally the consumer's account.