,,ii #aahth ,,congress #b;d ,session ,s4 #didc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #a1 #bjbd,mr4 ,blumenthal 7for himself and ,ms4 ,warren7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,electronic ,fund ,transfer ,act to treat fraudulently induced electronic fund transfers in the same manner as unauthorized electronic fund transfers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,protecting ,consumers ,from ,payment ,scams ,act4 #b4 ,treatment of fraudulently induced electronic fund transfers 7a7 ,definitions ,section #ijc of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afic;a7 is amended-- 7#a7 in paragraph 7#g7-- 7,a7 by striking subparagraphs 7,b7 and 7,e72 7,b7 by redesignating subparagraphs 7,c7 and 7,d7 as subparagraphs 7,b7 and 7,c71 respectively2 7,c7 in subparagraph 7,b71 as so redesignated1 by adding or at the end2 and 7,d7 in subparagraph 7,c71 as so redesignated1 by striking or at the end2 7#b7 by striking paragraph 7#i7 and inserting the following3 7#i7 the term financial institution means-- 7,a7 a ,state or ,national bank1 a ,state or ,federal savings and loan association1 a mutual savings bank1 a ,state or ,federal credit union1 or any other person who1 directly or indirectly1 holds an account belonging to a consumer2 or 7,b7 any person that-- 7i7 issues an accepted card or other means of access or provides other means to facilitate an electronic fund transfer2 and 7ii7 agrees1 directly or indirectly1 with a consumer to provide electronic fund transfer services2 2 and 7#c7 by striking paragraph 7#ab7 and inserting the following3 7#ab7 the term unauthorized or fraudulently induced electronic fund transfer-- 7,a7 means an electronic fund transfer from a consumer's account initiated by-- 7i7 a person other than the consumer without actual authority to initiate such transfer2 or 7ii7 the consumer1 if the consumer's authorization or initiation of the electronic fund transfer was fraudulently induced2 and 7,b7 does not include any electronic fund transfer-- 7i7 initiated by a natural person other than the consumer who was furnished with the card1 code1 or other means of access to such consumer's account by such consumer1 unless-- 7,i7 the consumer has notified the financial institution involved that transfers by such other person are no longer authorized2 or 7,,ii7 the consumer was fraudulently or coercively induced to furnish the card1 code1 or other means of access2 7ii7 initiated by a consumer who has fraudulent intent1 or anyone acting in concert with such a consumer2 or 7iii7 which constitutes an error committed by a financial institution4 4 7b7 ,definition of error ,section #ijh7;f7 of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afic;f7f77 is amended-- 7#a7 in paragraph 7#b71 by inserting 1 including a mistake or other error made by a consumer before the semicolon2 7#b7 by redesignating paragraphs 7#f7 and 7#g7 as paragraphs 7#h7 and 7#i71 respectively2 and 7#c7 by inserting after paragraph 7#e7 the following3 7#f7 the consumer's inability to access funds in a frozen1 closed1 or otherwise inaccessible account1 except as required by a court order or law enforcement or unless the financial institution determines that the consumer obtained the funds through unlawful or fraudulent means2 7#g7 a reflection on a periodic statement of goods or services not accepted by the consumer or the designee of the consumer or not delivered to the consumer or the designee of the consumer2 4 7c7 ,consumer liability for unauthorized or fraudulently induced transfers ,section #iji of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afic;g7 is amended-- 7#a7 in the heading1 by striking unauthorized transfers and inserting unauthorized or fraudulently induced electronic fund transfers2 7#b7 by striking unauthorized electronic fund transfer each place such term appears and inserting unauthorized or fraudulently induced electronic fund transfer2 7#c7 by striking unauthorized electronic fund transfers each place such term appears and inserting unauthorized or fraudulently induced electronic fund transfers2 7#d7 in subsection 7a7-- 7,a7 by striking unauthorized transfer and inserting unauthorized or fraudulently induced electronic fund transfer2 and 7,b7 by inserting fraudulently induced transfer or before loss or theft each place such term appears2 7#e7 in subsection 7b7-- 7,a7 by striking financial institution to show that and inserting 8financial institution-- 7#a7 to show that 2 7,b7 by striking was authorized or1 if the electronic fund transfer was unauthorized1 then the burden of proof is upon the financial institution and inserting 8was authorized or was not fraudulently induced1 as applicable2 or 7#b7 if the showing under paragraph 7#a7 is not made1 2 and 7,c7 by striking 1 if the transfer was initiated after the effective date of section #ije12 and 7#f7 by adding at the end the following3 7f7 ,shared liability of institutions involved in an unauthorized or fraudulently induced electronic fund transfer 7#a7 ,crediting of consumer account ,a financial institution shall reimburse the consumer for the amount of an electronic fund transfer that was unauthorized or fraudulently induced1 subject to any liability of the consumer under subsection 7a74 7#b7 ,liability sharing ,subject to paragraph 7#c7 and with respect to a loss suffered by a financial institution in connection with crediting a consumer's account for an electronic fund transfer that was unauthorized or fraudulently induced1 the liability for such loss shall be evenly shared between the financial institution holding the consumer's account and the financial institution that received the transfer4 7#c7 ,liability of certain institutions that materially support other financial institutions 7,a7 ,rulemaking ,the ,bureau may issue-- 7i7 a rule to identify certain financial institutions or classes of financial institutions described in section #ijc7i77;,b7 that materially support other financial institutions in carrying out electronic fund transfers2 and 7ii7 such other rules as the ,bureau determines are necessary or appropriate to implement the shared liability provisions under this subsection4 7,b7 ,liability ,with respect to a loss described in paragraph 7#b7 in connection with an electronic fund transfer1 if any financial institution identified under subparagraph 7,a7 is described in section #ijc7i77;,b7 with respect to such transfer1 each financial institution and the #b financial institutions described in paragraph 7#b7 shall evenly share the liability for such loss4 4 7d7 ,rule of ,construction ,nothing in this ,act or the amendments made by this ,act may be construed to limit the authority of the ,bureau of ,consumer ,financial ,protection or the applicability of relevant consumer financial protection laws that may otherwise impose requirements that are being amended by this ,act4