Question: 1. What happens when an electronic fund transfer is begun at a retailer by a consumer paying for goods with a debit card?
2. Cathy and Ray Vigneri authorized Nationwide Credit, Inc., a debt collector, to withdraw $100 per month from their checking account to pay a debt to American Express.
For four months, Nationwide initiated $100 debits on the Vigneri's account at U.S. Bank National Association. Nationwide initiated the transfers by depositing a paper draft at its bank. The drafts contained the bank's routing number, the bank's stamp, and other coding and symbols indicating they had been processed through the Federal Reserve. In August, Nationwide told the Vigneris that American Express wanted the debt paid off and without the Vigneri's consent withdrew $1,075. As it had done previously, this withdrawal was done by means of a paper draft. The Vigneris sued U.S. Bank, alleging it had violated the EFTA by making an unauthorized withdrawal from their account. Had U.S. Bank violated the EFTA?