A seller may not obtain or submit for payment a check, draft, or other form of negotiable paper drawn on a consumer‘s checking, savings, share, or similar account, without that consumer’s express verifiable authorization. Such authorization shall be deemed verifiable if any of the following means are employed:

Terms Used In Nebraska Statutes 86-224

  • Consumer: means an actual or prospective purchaser, lessee, or recipient of consumer goods or services bought primarily for use for personal, family, or household purposes. See Nebraska Statutes 86-214
  • Seller: means any person or organization who individually or through salespersons initiates unsolicited consumer telephone calls in order to (1) sell, lease, or rent consumer goods or services, (2) offer gifts or prizes with the intent to sell, lease, or rent consumer goods or services, or (3) represent to a consumer that the consumer has won or will receive a prize by telephonic means or by written notice sent through the mail in which the goods and services and all the material terms of the transaction are not fully described and which require that the consumer contact the seller by telephone to learn about or initiate the transaction. See Nebraska Statutes 86-219

(1) Express written authorization by the consumer, which may include the consumer’s signature on the negotiable instrument;

(2) Express oral authorization which is tape recorded and made available upon request to the consumer’s financial institution or to the consumer and which evidences clearly both the consumer’s authorization of payment for the goods and services that are the subject of the sales offer and the consumer’s receipt of all of the following information:

(a) The date of the check, draft, or other form of negotiable paper;

(b) The amount of the check, draft, or other form of negotiable paper;

(c) The payor’s name;

(d) The number of check, draft, or negotiable paper payments, if more than one;

(e) A telephone number for consumer inquiry that is answered during normal business hours; and

(f) The date of the consumer’s oral authorization; or

(3) Written confirmation of the transaction, sent to the consumer prior to submission for payment of the consumer’s check, draft, or other form of negotiable paper that includes:

(a) All of the information contained in subdivision (2) of this section; and

(b) The procedures by which the consumer can obtain a refund from the seller in the event the confirmation is inaccurate.

Source

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