Certified Regulatory Compliance Manager (CRCM) — Question 192

To stop a payment of a preauthorized transfer, consumer must notify the institution or in writing at least:

Answer options

• A. Three days before the transfer is to occur
• B. Within 14 days of oral notice
• C. Binding after 14 days if no written confirmation is received
• D. None of these

Correct answer: A

Explanation

The correct answer is A, as consumers are required to notify their institution at least three days prior to the scheduled transfer to successfully stop it. Options B and C discuss timelines related to oral notices and confirmations, which are not applicable to the requirement for stopping a preauthorized transfer. Option D is incorrect as there is a specific requirement outlined.