a. Under the EFTA, if a consumer wants to stop payment of a preauthorized electronic fund transfer, what must they do?
b. What was the Court's decision regarding the Defendant's motion to dismiss?
c. Why the different outcome between the two transfers?
Eunice Broxton-King paid $28 a month to belong to the YMCA. On the first day of each month, this sum was transferred automatically from her account at the LaSalle Bank to the YMCA. On August 31, Broxton-King went to the bank, paid an overdraft on her account, and then closed it. However, on September 1, the bank transferred $28 to the YMCA. Because there was no money in her account, the bank charged an overdraft fee of $22 and a service charge of $3. The overdraft totaled $53. On September 7, the bank sent Broxton-King a notice of this overdraft. She told the bank that her account had been closed on August 31, that the debit to the YMCA should be stopped, and the fees refunded. But on October 1, the bank again debited plaintiff's checking account for the $28 YMCA fee and added an additional $27 in overdraft and service fees.
Alleging that the bank had violated the EFTA, Broxton-King filed a pro se lawsuit.6 The bank filed a motion to dismiss.