I
107TH CONGRESS
1ST SESSION
H. R. 1825
To amend the Electronic Fund Transfer Act to safeguard consumers in
connection with the utilization of certain debit cards.
IN THE HOUSE OF REPRESENTATIVES
MAY 14, 2001
Mr. BARRETT of Wisconsin introduced the following bill; which was referred
to the Committee on Financial Services
A BILL
To amend the Electronic Fund Transfer Act to safeguard
consumers in connection with the utilization of certain
debit cards.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Consumer Debit Card
Protection Act’’.
SEC. 2. CONGRESSIONAL FINDINGS.
The Congress finds the following:
(1) There has been a recent trend toward
issuing debit cards which can be used like credit
cards, largely as replacements for debit cards which
could be used only with a personal identification
number at automated teller machines and a limited
number of retail establishments.
(2) Many times, debit cards that can be used
like credit cards have been issued without providing
adequate disclosure that—
(A) the card may be used to initiate an
electronic fund transfer without the use of a
personal identification number or similar code
or means of access; and
(B) even though the card may carry a logo
associated with credit cards, the card is not a
credit card and the consumer may bear a sig-
nificantly larger liability for an unauthorized
transaction involving such debit card than
would be the case for a similar unauthorized
transaction involving a credit card.
(3) Thus, millions of Americans are—
(A) receiving cards in a form they didn’t
request; and
(B) are carrying such cards around with
them—
(i) without realizing that the cards
have an expanded capability without the
protections against unauthorized transfers
which are typical of cards issued to make
cash withdrawals from automated teller
machines; and
(ii) without fully appreciating the
risks associated with such cards.
(4) Economic stimulation would be enhanced
and competition among the various financial institu-
tions and other companies which issue debit cards
would be strengthened by the informed use of debit
cards by consumers.
SEC. 3. DEFINITIONS.
Section 903 of the Electronic Fund Transfer Act (15
U.S.C. 1693a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(10);
(2) by striking the period at the end of para-
graph (11) and inserting a semicolon; and
(3) by adding at the end the following new
paragraphs:
‘‘(12) ATM CARD.—The term ‘ATM card’
means any card issued by a financial institution for
use in initiating electronic fund transfers at auto-
mated teller machines and other electronic terminals
which requires a code or other unique form of identi-
fication (other than a signature) in order to access
the account of the consumer; and
‘‘(13) CHECK
CARD.—The term ‘check card’
means any card issued by a financial institution for
use in initiating electronic fund transfers from the
account of a consumer which does not require the
protection of a code or other means of access that
uniquely identifies the consumer (and for purposes
of this paragraph, a signature shall not be treated
as a means of access which uniquely identifies the
consumer).’’.
SEC. 4. CHECK CARD REQUIREMENT.
Section 911 of the Electronic Fund Transfer Act (15
U.S.C. 1693i) is amended by adding at the end the fol-
lowing new subsection:
‘‘(e) CHECK CARD REQUIREMENT.—Any check card
issued by any financial institution to any consumer shall
bear the legend ‘Check Card’ in a prominent typeface and
in a conspicuous place on the face of the check card.’’.
SEC. 5. DUAL-USE DEBIT CARD.
(a) CONSUMER LIABILITY.—
(1) IN
GENERAL.—Section 909 of the Elec-
tronic Fund Transfer Act (15 U.S.C. 1693g) is
amended—