Consumer control over bank accounts

(a) Prohibiting unauthorized remotely created checks Section 905 of the Electronic Fund Transfer Act (15 U.S.C. 1693c) is amended by adding at the end the following: (d) Limitations on remotely created checks (1) Definition In this subsection— (A) the term Federal consumer financial law has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481); and (B) the term remotely created check means a check, including a paper or electronic check and any other payment order that the Bureau, by rule, determines is appropriately covered under this subsection, that— (i) is not created by the financial institution that holds the customer account from which the check is to be paid; and (ii) does not bear a signature applied, or purported to be applied, by the person from whose account the check is to be paid. (2) Limitations Subject to the limitations in paragraph (3) and any additional limitations that the Bureau may establish by rule, a remotely created check may only be issued by a person designated in writing by a consumer, with that written designation specifically provided by the consumer to the insured depository institution at which the consumer maintains the account from which the check is to be drawn. (3) Additional limitations (A) In general A designation provided by a consumer under paragraph (2) may be revoked at any time by the consumer. (B) Consumer financial protection laws No payment order, including a remotely created check, may be issued by any person in response to the exercise of, or attempt to exercise, any right by a consumer under— (i) any Federal consumer financial law; or (ii) any other provision of any law or regulation within the jurisdiction of the Bureau.. (b) Consumer protections for certain one-Time electronic fund transfers Section 913 of the Electronic Fund Transfer Act (15 U.S.C. 1693k) is amended— (1) in the matter preceding paragraph (1), by inserting (a) In general.— before No person; (2) in subsection (a)(1), as so designated, by striking preauthorized electronic fund transfers and inserting an electronic fund transfer; and (3) by adding at the end the following: (b) Treatment for electronic fund transfers in credit extensions If a consumer voluntarily agrees to repay an extension of a small-dollar consumer credit transaction, as defined in section 110(a) of the Truth in Lending Act, by means of an electronic fund transfer, the electronic fund transfer shall be treated as a preauthorized electronic fund transfer subject to the protections of this title..