EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0930*
SENATE BILL 930
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By: Senator Rosapepe
Introduced and read first time: February 2, 2024
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Commercial Law – Consumer Wire Transfers – Liability 2
(Elder Fraud Prevention Act of 2024) 3
FOR the purpose of exempting certain transactions from certain provisions of the Maryland 4
Uniform Commercial Code; limiting a consumer’s liability for damages resulting 5
from certain consumer wire transfers; requiring certain notice to conform to certain 6
requirements in order to be considered sufficient; requiring certain investigations of 7
certain allegations regarding consumer wire transfers; requiring decisions and 8
materials be provided to a consumer in certain circumstances; subjecting certain 9
financial institutions to treble damages under certain circumstances; subjecting 10
certain financial institutions to certain liability for violation of this Act; prohibiting 11
the waiver of rights conferred on a consumer by this Act; exempting certain wire 12
transfers from this Act; and generally relating to consumer wire transfers. 13
BY repealing and reenacting, without amendments, 14
Article – Commercial Law 15
Section 4A–102 16
Annotated Code of Maryland 17
(2013 Replacement Volume and 2023 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Commercial Law 20
Section 4A–108 21
Annotated Code of Maryland 22
(2013 Replacement Volume and 2023 Supplement) 23
BY adding to 24
Article – Commercial Law 25
Section 12–1501 through 12–1507 to be under the new subtitle “Subtitle 15. 26
Consumer Wire Transfers” 27
Annotated Code of Maryland 28 2 SENATE BILL 930
(2013 Replacement Volume and 2023 Supplement) 1
SECTION 1. BE IT ENACTED BY THE GENERAL AS SEMBLY OF MARYLAND, 2
That the Laws of Maryland read as follows: 3
Article – Commercial Law 4
4A–102. 5
Except as otherwise provided in § 4A–108 of this subtitle, this title applies to funds 6
transfers defined in § 4A–104 of this subtitle. 7
4A–108. 8
(a) Except as provided in subsection (b) of this section, this title does not apply to 9
a funds transfer [any]: 10
(1) THAT IS A WIRE TRANSF ER INITIATED BY AN I NDIVIDUAL; OR 11
(2) ANY part of which is governed by the Electronic Fund Transfer Act of 12
1978 (Title XX, Public Law 95–630, 92 Stat. 3728, 15 U.S.C. § 1693 et seq.) as amended 13
from time to time. 14
(b) This title applies to a funds transfer that is [a]: 15
(1) A WIRE TRANSFER INITIA TED BY AN INDIVIDUAL , TO THE EXTENT 16
THAT THE PROVISIONS OF THIS TITLE DO N OT CONFLICT WITH THE PROVISIONS OF 17
TITLE 12, SUBTITLE 15 OF THIS ARTICLE; OR 18
(2) A remittance transfer as defined in the Electronic Fund Transfer Act 19
(15 U.S.C. § 1693o–1) as amended from time to time, unless the remittance transfer is an 20
electronic fund transfer as defined in the Electronic Fund Transfer Act (15 U.S.C. § 1693a) 21
as amended from time to time. 22
(c) In a funds transfer to which this title applies, in the event of an inconsistency 23
between an applicable provision of this title and an applicable provision of the Electronic 24
Fund Transfer Act, the provision of the Electronic Fund Transfer Act governs to the extent 25
of the inconsistency. 26
SUBTITLE 15. CONSUMER WIRE TRANSFERS. 27
12–1501. 28
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 29
INDICATED. 30
SENATE BILL 930 3
(B) “CONSUMER” MEANS AN INDIVIDUAL . 1
(C) “CONSUMER WIRE TRANSFE R” MEANS A WIRE TRANSFE R THAT IS 2
INITIATED BY A CONSU MER. 3
(D) “CONSUMER’S FINANCIAL INSTITUT ION” MEANS A FINANCIAL 4
INSTITUTION THAT PRO VIDES A CONSUMER WIT H AN ACCOUNT AND A MEANS BY 5
WHICH TO MAKE A CONS UMER WIRE TRANSFER . 6
(E) (1) “ELECTRONIC TERMINAL ” MEANS AN ELECTRONIC DEVICE THAT 7
A CONSUMER MAY USE T O INITIATE A TRANSFE R OF FUNDS. 8
(2) “ELECTRONIC TERMINAL ” INCLUDES AN AUTOMATE D TELLER 9
MACHINE, A POINT–OF–SALE TERMINAL , AND A CASH–DISPENSING MACHINE . 10
(F) (1) “ERROR” MEANS AN INACCURACY APPEARING ON A STATE MENT 11
OF A CONSUMER ’S ACCOUNT. 12
(2) “ERROR” INCLUDES: 13
(I) AN UNAUTHORIZED DEBIT ; 14
(II) AN INCORRECT TRANSFER TO OR FROM THE CONSU MER’S 15
ACCOUNT; 16
(III) OMISSION OF A TRANSACTI ON THAT SHOULD HAVE BEEN 17
INCLUDED IN THE STAT EMENT; 18
(IV) A COMPUTATIONAL ERROR BY THE CONSUMER ’S FINANCIAL 19
INSTITUTION; 20
(V) A CONSUMER ’S RECEIPT OF AN INCO RRECT AMOUNT FROM 21
AN ELECTRONIC TERMIN AL; AND 22
(VI) ANOTHER ERROR IDEN TIFIED BY THE FEDERA L CONSUMER 23
FINANCIAL PROTECTION BUREAU UNDER THE FEDE RAL ELECTRONIC FUNDS 24
TRANSFER ACT. 25
(G) “OVERDRAFT PROTECTION ” MEANS AN EXTENSION O F CREDIT BY A 26
CONSUMER ’S FINANCIAL INSTITUT ION TO COVER ANY LIA BILITY INCURRED BY A 27
DEBIT OF THE CO NSUMER’S ACCOUNT BY AN AMOU NT IN EXCESS OF THE ACCOUNT 28
BALANCE. 29
4 SENATE BILL 930
(H) (1) “VERIFICATION MECHANIS M” MEANS A MEANS BY WHI CH AN 1
INDIVIDUAL’S AUTHORITY TO INITI ATE A CONSUMER WIRE TRANSFER MAY BE 2
CONFIRMED . 3
(2) “VERIFICATION MECHANIS M” INCLUDES VERIFICATIO N BY 4
SIGNATURE, FINGERPRINT, OR A PERSONAL IDENTI FICATION NUMBER . 5
12–1502. 6
THIS SUBTITLE DOES NO T APPLY TO A WIRE TR ANSFER OF WHICH ANY PART 7
IS GOVERNED BY THE F EDERAL ELECTRONIC FUND TRANSFER ACT. 8
12–1503. 9
(A) EXCEPT AS PROVIDED IN THIS SECTION, A CONSUMER IS NOT LIAB LE 10
FOR DAMAGES RESULTIN G FROM AN UNAUTHORIZ ED CONSUMER WIRE TRA NSFER. 11
(B) A CONSUMER IS LIABLE F OR DAMAGES RESULTING FROM AN 12
UNAUTHORIZED CONSUME R WIRE TRANSFER AS D ETERMINED UNDER THIS SECTION 13
IF: 14
(1) THE CONSUMER WIRE TRA NSFER WA S INITIATED BY MEANS 15
AUTHORIZED BY THE CO NSUMER; AND 16
(2) THE MEANS USED TO INI TIATE THE CONSUMER W IRE TRANSFER 17
WAS ENABLED USING A VERIFICATION MECHANI SM AT THE TIME THE C ONSUMER 18
WIRE TRANSFER WAS IN ITIATED. 19
(C) IF A CONSUMER NOTIFIE S THE CONSUMER ’S FINANCIAL INSTITUTION : 20
(1) OF AN UNAUTHORIZED CO NSUMER WIRE TRANSFER WITHIN 60 21
DAYS AFTER THE TRANS MITTAL OF AN ACCOUNT STATEMENT THAT INCLU DES AN 22
ALLEGEDLY UNAUTHORIZ ED CONSUMER WIRE TRA NSFER, THE CONSUMER IS 23
LIABLE FOR DAMAGES R ESULTING FROM THE UN AUTHORIZED CONSUMER WIRE 24
TRANSFER THAT ARE TH E LESSER OF: 25
(I) $50; OR 26
(II) THE AMOUNT OF THE UNA UTHORIZED CONSUMER W IRE 27
TRANSFER; OR 28
(2) OF THE LOSS OR THEFT OF A MEANS BY WHICH A CONSUMER WIRE 29
TRANSFER MAY BE INIT IATED WITHIN 2 BUSINESS DAYS AFTER THE DISCOVERY OF 30 SENATE BILL 930 5
THE LOSS OR THEFT , THE CONSUMER IS LIAB LE FOR DAMAGES RESUL TING FROM 1
THE LOSS OR THEFT TH AT ARE THE LESSER OF : 2
(I) $500; OR 3
(II) THE AMOUNT OF AN UNAU THORIZED CONSUMER WI RE 4
TRANSFER RESULTING F ROM THE LOSS OR THEF T OF THE MEANS BY WHICH A 5
CONSUMER WIRE TRANSF ER MAY BE INITIATED . 6
(D) IF A CONSUMER FAILS T O PROVIDE THE CONSUM ER’S FINANCIAL 7
INSTITUTION SUFFICIE NT NOTICE , THE CONSUMER IS NOT ENTITLED TO 8
REIMBURSEMENT FOR DA MAGES RESULTING FROM AN UNAUTHORIZED CONS UMER 9
WIRE TRANSFER . 10
(E) A CONSUMER ’S LIABILITY FOR UNAU THORIZED TRANSACTION S THAT 11
TRIGGER OVERDRAFT PR OTECTION SHALL BE DE TERMINED EXCLUSIVELY IN 12
ACCORDANCE WITH THIS SECTION. 13
(F) THIS SECTION MAY NOT BE CONSTRUED TO IMPO SE LIABILITY IN 14
EXCESS OF THE AMOUNT S IDENTIFIED IN THIS SECTION. 15
12–1504. 16
NOTICE REQUIRED UNDER THIS SUBTITLE IS NOT SUFFICIENT UNLESS : 17
(1) THE CONSUMER TAKES ST EPS TO NOTIFY THE CO NSUMER’S 18
FINANCIAL INSTITUTIO N THAT ARE REASONABL E IN THE ORDINARY CO URSE OF 19
BUSINESS; 20
(2) THE NOTICE ENABLES TH E CONSUMER’S FINANCIAL INSTITUT ION 21
TO IDENTIFY THE NAME AND ACCOUNT NUMBER O F THE CONSUMER ; 22
(3) THE NOTICE INDICATES THAT THE CONSUMER BE LIEVES THAT 23
THERE IS AN ERROR IN THE ACCOUNT STATEMEN T DESCRIBED UNDER § 24
12–1503(C)(1) OF THIS SUBTITLE ; AND 25
(4) THE NOTICE IS GIVEN ORAL LY AND IF THE CONSUM ER’S 26
FINANCIAL INSTITUTIO N REQUESTS WRITTEN N OTICE: 27
(I) THE CONSUMER ’S FINANCIAL INSTITUT ION PROVIDES AN 28
ADDRESS WHERE THE WR ITTEN NOTICE MAY BE SENT; AND 29
6 SENATE BILL 930
(II) THE WRITTEN NOTICE IS RECEIVED BY THE CONS UMER’S 1
FINANCIAL INSTITUTIO N WITHIN 10 BUSINESS DAYS AFTER THE NOTICE IS 2
REQUESTED . 3
12–1505. 4
(A) IF A CONSUMER ’S FINANCIAL INSTITUT ION RECEIVES SUFFICI ENT 5
NOTICE OF AN ERROR W ITHIN 60 DAYS AFTER TRANSMITT AL OF AN ACCOUNT 6
STATEMENT THAT CONTA INS THE ALLEGED ER ROR, THE CONSUMER ’S FINANCIAL 7
INSTITUTION SHALL IN ITIATE AN INVESTIGAT ION OF ANY ALLEGED E RROR. 8
(B) (1) THE CONSUMER ’S FINANCIAL INSTITUT ION SHALL TRANSMIT A 9
DECISION RESULTING F ROM AN INVESTIGATION INITIATED UNDER THIS SECTION: 10
(I) WITHIN 10 BUSINESS DAYS AFTER THE INVESTIGATION WA S 11
INITIATED; AND 12
(II) IF THE CONSUMER ’S FINANCIAL INSTITUT ION ELECTS TO 13
PROVISIONALLY CREDIT THE CONSUMER ’S ACCOUNT IN THE AMO UNT OF THE 14
ERROR ALLEGED , WITHIN 45 BUSINESS DAYS AFTER THE INVESTIGATION WA S 15
INITIATED. 16
(2) IF A CONSUMER ’S FINANCIAL INSTITUT ION ELECTS TO 17
PROVISIONALLY CREDIT THE CONSUMER ’S ACCOUNT UNDER PARA GRAPH (1)(II) OF 18
THIS SUBSECTION , THE CONSUMER MAY USE ANY FUNDS CREDITED A T ANY TIME 19
FOR ANY PURPOSE . 20
(C) IF AN INVESTIGATION U NDER THIS SECT ION RESULTS IN A DEC ISION 21
THAT NO ERROR OCCURR ED: 22
(1) THE DECISION SHALL BE TRANSMITTED TO THE C ONSUMER 23
WITHIN 3 BUSINESS DAYS AFTER THE DECISION IS MADE ; 24
(2) ON REQUEST BY THE CON SUMER, THE CONSUMER ’S FINANCIAL 25
INSTITUTION SHALL TR ANSMIT TO THE CONS UMER COPIES OF ALL R ECORDS THE 26
CONSUMER ’S FINANCIAL INSTITUT ION USED TO MAKE THE DECISION; AND 27
(3) THE DECISION SHALL CO NTAIN A NOTICE REASO NABLY 28
CALCULATED TO BE UND ERSTANDABLE BY THE C ONSUMER THAT THE CON SUMER 29
MAY REQUEST RECORDS IN ACCORDANCE WITH I TEM (2) OF THIS SUBSECTION . 30
(D) IF AN INVESTIGATION U NDER THIS SECTION RE SULTS IN A DECISION 31
THAT AN ERROR OCCURR ED: 32 SENATE BILL 930 7
(1) THE DECISION SHALL BE TRANSMITTED TO THE C ONSUMER 1
WITHIN 1 BUSINESS DAY AFTER T HE DECISION IS MADE ; AND 2
(2) THE CONSUMER ’S FINANCIAL INSTITUTION SHA LL CORRECT THE 3
ERROR IN ACCORDANCE WITH LIABILITY DETER MINED UNDER § 12–1503 OF THIS 4
SUBTITLE, INCLUDING ANY INTERE ST THAT WOULD HAVE A CCRUED IF THE FUNDS 5
HAD NOT BEEN ERRONEO USLY DEBITED FROM TH E CONSUMER ’S ACCOUNT. 6
(E) A CONSUMER SH ALL BE ENTITLED TO T REBLE DAMAGES IF THE 7
CONSUMER SHOWS THAT THE CONSUMER ’S FINANCIAL INSTITUT ION: 8
(1) DID NOT MAKE A GOOD F AITH INVESTIGATION O F AN ALLEGED 9
ERROR; 10
(2) DID NOT HAVE A REASON ABLE BASIS TO BELIEV E THAT THERE 11
WAS NO ERROR AND DID NOT PROVISIONALLY CREDIT THE CONSUMER ’S ACCOUNT 12
WITHIN 10 DAYS AFTER RECEIPT O F NOTICE OF THE ALLE GED ERROR; OR 13
(3) KNOWINGLY AND WILLFUL LY CONCLUDED THAT TH E 14
CONSUMER ’S ACCOUNT WAS NOT IN ERROR AND THE CONCLU SION WAS 15
UNREASONABLE CONSIDE RING THE EVIDENCE A VAILABLE. 16
12–1506. 17
(A) IF A CONSUMER’S FINANCIAL INSTITUT ION FAILS TO COMPLY WITH THIS 18
SUBTITLE WITH RESPEC T TO A CONSUMER OR G ROUP OF CONSUMERS : 19
(1) (I) FOR AN INDIVIDUAL ACT ION, THE CONSUMER ’S FINANCIAL 20
INSTITUTION SHALL BE LIABLE IN THE AMOUNT : 21
1. EXCEPT AS PROVIDED IN ITEM 2 OF THIS ITEM, OF 22
ANY DAMAGES SUSTAINE D BY THE CONSUMER ; AND 23
2. OF NOT LESS THAN $100 AND NOT MORE THAN 24
$1,000; AND 25
(II) FOR A CLASS ACTION : 26
1. NO MINIMUM RECOVERY P ER CLAIMANT MAY APPL Y; 27
8 SENATE BILL 930
2. EXCEPT AS PR OVIDED IN ITEM 3 OF THIS ITEM, THE 1
CONSUMER ’S FINANCIAL INSTITUT ION SHALL BE LIABLE IN THE AMOUNT THE 2
COURT MAY ALLOW ; AND 3
3. THE TOTAL LIABILITY O F THE CONSUMER ’S 4
FINANCIAL INSTITUTIO N MAY NOT BE IN EXCE SS OF THE GREATER OF $500,000 OR 5
1% OF THE CONS UMER’S FINANCIAL INSTITUT ION’S NET WORTH; 6
(2) IF A VIOLATION IS FOU ND BY A COURT , THE CONSUMER ’S 7
FINANCIAL INSTITUTIO N SHALL BE LIABLE FO R REASONABLE ATTORNE Y’S FEES 8
ASSOCIATED WITH THE ACTION; AND 9
(3) AN AFFIRMATIVE DEFENS E SHALL BE AVAILABLE TO A 10
CONSUMER’S FINANCIAL INSTITUT ION WITH RESPECT TO AN ALLEGED ERROR IF 11
THE CONSUMER ’S FINANCIAL INSTITUT ION SHOWS, BY A PREPONDERANCE O F THE 12
EVIDENCE, THAT THE ERROR : 13
(I) WAS A GOOD FAITH ERRO R REGARDLESS OF ANY 14
REASONABLE PROCEDURE S IN PLACE DESIGNED TO AVOID SUCH AN ERROR ; AND 15
(II) WAS NOT INTENTIONAL . 16
(B) IN DETERMINING LIABIL ITY FOR A VIOLATION OF THIS SUBTITLE , A 17
COURT SHALL CONSIDER : 18
(1) THE FREQUENCY AND PER SISTENCE OF THE VIOL ATION; 19
(2) THE NATURE OF THE VIO LATION; 20
(3) THE RESOURCES AVAILABLE TO THE DEF ENDANT; 21
(4) THE NUMBER OF INDIVID UALS ADVERSELY AFFEC TED BY THE 22
ALLEGED ERROR ; AND 23
(5) THE EXTENT TO WHICH T HE VIOLATION WAS INT ENTIONAL. 24
(C) IN AN ACTION TO DETER MINE A CONSUMER ’S LIABILITY FOR A 25
CONSUMER WIRE TRANSF ER: 26
(1) THE CONSUMER ’S FINANCIAL INSTITUT ION SHALL HAVE THE 27
BURDEN OF PROOF TO S HOW THAT THE CONSUME R WIRE TRANSFER WAS 28
AUTHORIZED ; AND 29
SENATE BILL 930 9
(2) IF THE CONSUMER WIRE TRANSFER WAS UNAUTHO RIZED, THE 1
CONSUMER ’S FINANCIAL INSTITUT ION SHALL HAVE THE B URDEN OF PROOF TO 2
SHOW THAT THE CONDITIO NS FOR THE CONSUMER ’S LIABILITY UNDER § 12–1503 OF 3
THIS SUBTITLE WERE M ET. 4
12–1507. 5
(A) A CONSUMER MAY NOT WAI VE THE RIGHTS CONFER RED UNDER THIS 6
SUBTITLE THROUGH ANY MEANS, INCLUDING THROUGH A CONTRACT. 7
(B) THIS SUBTITLE MAY NOT BE CONSTRUED TO LIMIT A NY OTHER RIGHTS 8
OF A CONSUMER . 9
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
October 1, 2024. 11