86-224.

Payment; consumer's express verifiable authorization required.

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:

(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.