A customer who wanted to discontinue automatic transfers notified the bank after the deadline. What should the bank advise?

The appropriate advice for the customer in this scenario is that the bank has no liability for the late notice and will proceed to discontinue the automatic transfer beginning with the next billing cycle. This response is grounded in the regulatory framework surrounding automatic transfers and customer notifications.

When a customer sets up automatic transfers, there is generally an expectation that they will provide timely notice if they wish to discontinue those transfers. Most financial institutions have policies in place that require notification prior to a billing cycle to allow for proper processing. If the customer notifies the bank after the deadline, the bank is typically not held responsible for any transfers made before the new instruction can take effect. Therefore, informing the customer that the transfer will be discontinued with the next billing cycle is both compliant with banking practices and fair to both the bank and the customer.

In the context of the other options, they are not aligned with how automatic transfer discontinuations are handled. The utility company's involvement or need to correct a problem does not pertain to the relationship between the bank and the customer in this scenario. Prompt crediting of the account may not be appropriate if transfers are processed after the late notice and federal law requirements for prior written notice generally govern the bank's responsibilities, not immediate termination of transfers based on customer requests