WASHINGTON (4/4/14)--Legislation that would put a $50 liability cap for consumers hit by debit card fraud was introduced in the U.S. Senate.
The primary sponsors of the bill, known as the Consumer Debit Card Protection Act of 2014, are Sens. Mark Warner (D-Va.) and Mark Kirk (R-Ill.). The proposed $50 maximum liability limit matches the limit protecting credit card fraud victims. Debit card fraud victims can currently be on the hook for as much as $500 of a wrongfully made purchase.
"Debit card use has just exploded in recent years, especially among young people, and consumer protections must keep pace," Warner said of the bill's intent. "This legislation ensures that our federal statutes for debit card protections are on par with those of credit cards, and will help consumers keep their wallets safe," Kirk added.
"In light of the millions of consumers who have had their financial information stolen during one of the recent data breaches, Sen. Warner and I will continue to take data security and the importance of consumer protections very seriously," Kirk pledged.
The bill would also shorten the time consumers must wait to receive refunds for fraudulent debit card charges to seven business days from 10 business days.
Consumers made 47 billion debit card purchases in 2012, nearly double the 26 million credit card purchases that were made in that year. Debit card transactions were behind $1.68 trillion in 2012 commerce, according to a release by the senators.