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Exam CRCM topic 1 question 206 discussion

Actual exam question from ABA's CRCM
Question #: 206
Topic #: 1
[All CRCM Questions]

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

  • 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
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Suggested Answer: A 🗳️

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Cam22
4 months ago
Selected Answer: A
The correct answer is A. Three business days before the scheduled date of the transfer, the consumer must notify the financial institution orally or in writing to stop payment of a preauthorized electronic fund transfer. This requirement gives the institution sufficient time to act on the consumer's request before the transfer occurs.
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