Commercial Law – Consumer Wire Transfers – Liability (Elder Fraud Prevention Act of 2024)
The legislation proposes significant amendments to the Maryland Uniform Commercial Code, specifically related to consumer wire transfers. It stipulates that consumers will not be liable for unauthorized transactions unless they have authorized the transaction or failed to report it in a timely manner. This change intends to deter financial institutions from unscrupulous practices while providing a more secure environment for consumers engaging in electronic transactions. Additionally, the bill advocates for more transparency, requiring financial institutions to conduct proper investigations into reported errors and decisions made regarding these matters.
Senate Bill 930, known as the Elder Fraud Prevention Act of 2024, addresses consumer protections in the realm of wire transfers. The bill aims to limit consumer liability for unauthorized wire transfers, establishing that financial institutions must bear the burden of proof in instances of alleged unauthorized transactions. This provision is particularly relevant as it seeks to protect vulnerable consumers, especially the elderly, from financial fraud and exploitation by ensuring they are not held liable for damages stemming from unauthorized transfers without adequate proof from their financial institutions.
While many support SB930 as a vital step towards consumer protection, particularly for the elderly, some stakeholders may express concerns regarding the feasibility and potential impact on financial institutions. There is a concern that imposing strict liability on financial institutions might lead to increased operational costs, potentially resulting in higher fees for consumers as institutions adapt to the new limitations on liability. Additionally, discussions around whether the bill sufficiently equips consumers with the necessary tools and knowledge to navigate their responsibilities under the new regulations could be a point of debate.