How many business days does XYZ have to investigate John’s unauthorized EFT?

The correct answer is based on the requirements set forth by the Electronic Fund Transfer Act (EFTA) and its implementing regulation, Regulation E. Under these guidelines, when a consumer reports an unauthorized Electronic Funds Transfer (EFT), the financial institution is required to investigate the claim within a specific timeframe.

In this case, the institution has 10 business days from the date of the notification to complete the investigation of the unauthorized transaction. If the financial institution determines that the claim is valid, it must correct the error within one business day. This prompt action is designed to protect consumers and ensure the security and integrity of their account information.

The options reflecting longer timeframes—20, 45, and 90 business days—exceed the regulations stipulated by EFTA and Regulation E regarding the investigation of unauthorized EFTs. Therefore, these options do not align with the statutory requirements for timely consumer protection in the context of unauthorized transactions.