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Remote Deposit Capture Liability Bill Filed in Texas House
Thursday, March 16, 2017 7:00 AM

H.B. 4125 by Rep. Abel Herrero (D-Corpus Christi) would impose liability on financial institutions when someone suffers a loss resulting from remote deposit capture. The language is broad and holds a credit union or bank liable for any loss suffered by any person resulting from the remote deposit capture.

The bill was brought due to losses suffered by employers who terminated employees; the former employee would deposit the final paycheck via remote capture to their account, then go to a check-cashing business to cash the physical check again. There have been federal court cases in other states regarding liability related to remote capture that have held the financial institution is not liable in such instances.

The bill has not yet been referred to a committee for consideration.

For more information, please contact Texas Credit Union Association President Jeff Huffman at 469-385-6488 or