Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 15

Jeremy Cobb submitted an apartment rental application to Common Properties Management Cooperative (Common) over the phone. Cobb authorized Common to debit his checking account for the $37.95 application fee. However, the debit was returned by Cobb's bank as unpaid, and Cobb was assessed a Non-Sufficient Funds (NSF) fee of $35.00 by Cobb's bank, along with a $25.00 "returned fee" by PayLease, LLC (PayLease), Common's financial institution. Cobb sued under the EFTA, alleging that the $25.00 "returned fee" had not been authorized. Was the $25.00 returned fee to Pay-Lease covered by the EFTA?