No person may issue to a consumer any card, code, or other means of access to such
consumer's account for the purpose of initiating an electronic fund transfer other
(1) in response to a request or application therefor; or
(2) as a renewal of, or in substitution for, an accepted card, code, or other means of
access, whether issued by the initial issuer or a successor.
Notwithstanding the provisions of subsection (a), a person may distribute to a consumer
on an unsolicited basis a card, code, or other means of access for use in initiating
an electronic fund transfer from such consumer's account, if--
(1) such card, code, or other means of access is not validated;
(2) such distribution is accompanied by a complete disclosure, in accordance with section 1693c of this title, of the consumer's rights and liabilities which will apply if such
card, code, or other means of access is validated;
(3) such distribution is accompanied by a clear explanation, in accordance with regulations
of the Bureau, that such card, code, or other means of access is not validated and
how the consumer may dispose of such code, card, or other means of access if validation
is not desired; and
(4) such card, code, or other means of access is validated only in response to a request
or application from the consumer, upon verification of the consumer's identity.
For the purpose of subsection (b), a card, code, or other means of access is validated
when it may be used to initiate an electronic fund transfer.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.