Act Now to Oppose Radical Changes to EFTA/Reg E

^{Read time: 42 secs}

Cornerstone League joins America’s Credit Unions in opposing the Protecting Consumers from Payment Scams Act of 2024 (HR 9303/S 4943), which aims to amend the Electronic Funds Transfer Act.

The bill would amend the EFTA to define an unauthorized transfer as fraudulently induced, requiring financial institutions to reimburse consumers. It would also define merchant charges for undelivered goods as errors and misdirected payments as information a consumer provided. EFTA’s current carveout for wire transfers would also change. The bill would treat remittance transfers like other electronic fund transfers subject to EFTA’s framework for error resolution and consumer reimbursement. 

Credit unions are already burdened with the consequences of data breaches and consumer fraud; this legislation would radically change EFTA’s delineation of a financial institution’s responsibility.

We urge you to visit the Action Alert to communicate with your lawmakers.

We also encourage you to use the August recess, while your legislators are in their home districts, to educate them on how S. 4943 and H.R. 9303 could hurt credit unions and destroy the current balance in the EFTA.  

If you have questions, please contact EVP/Chief Advocacy Officer Jim Phelps.