A financial institution is not required to give notice of a preauthorized EFT if the payor provides positive notice to the consumer that the transfer has been initiated. Is this statement true or false?

The statement is true because under the Electronic Fund Transfer Act (EFTA) regulations, financial institutions are only required to provide notice of a preauthorized electronic funds transfer (EFT) if they do not receive positive notice from the payor. Positive notice refers to a situation where the payor informs the consumer that a transfer has been initiated, effectively providing the consumer with the relevant information about the transaction. Consequently, if such notice is given by the payor, the financial institution is relieved of the duty to send a separate notice to the consumer regarding the transfer. This streamlines communication and avoids unnecessary duplication of notice, benefiting both consumers and financial institutions.