Consumer Banking and Payments Law: 5.9.5.2 Persons to Whom the Ban on Compulsory Use Applies; Overdraft Services and Lines of Credit
The ban on conditioning credit on payment by preauthorized electronic fund transfer applies to both financial institutions and other persons.1250 The statute, which generally imposes requirements on “financial institutions,” states that “[n]o person” may condition credit on electronic payment.1251 Regulation E says “[n]o financial institution or other person,”1252 and the Official Interpretations use the term “creditors,”