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Protecting Consumers from Payment Scams: Banks Share Liability for Fraud Losses.

This Act expands consumer protection by treating transfers initiated due to fraud (where the consumer was tricked) the same as unauthorized transactions. Financial institutions will be required to reimburse consumers for funds lost in such scams. The liability for these losses will then be shared equally between the consumer's bank and the receiving bank, enhancing citizens' financial security.
Key points
Financial institutions must reimburse consumers for funds lost when they are fraudulently induced into initiating an electronic transfer.
Liability for losses resulting from these scams is shared equally between the consumer's bank and the bank that received the funds.
The burden of proof shifts to the financial institution to demonstrate that a transfer was not fraudulently induced.
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Expired
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Additional Information
Print number: 118_HR_9303
Sponsor: Rep. Waters, Maxine [D-CA-43]
Process start date: 2024-08-02
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Protecting Consumers From Payment Scams Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9303.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-08-02.

What are the main provisions?

Key points include:

  • Financial institutions must reimburse consumers for funds lost when they are fraudulently induced into initiating an electronic transfer.
  • Liability for losses resulting from these scams is shared equally between the consumer's bank and the bank that received the funds.
  • The burden of proof shifts to the financial institution to demonstrate that a transfer was not fraudulently induced.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Waters, Maxine [D-CA-43].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Economy Courts and Law