Capital Corner: Payment fraud rises to top of the agenda

But is the cure worse than the disease? So, if a bad bill doesn’t become a law in Congress, there’s nothing to worry about, right?

Not necessarily, as new legislation aimed at payment fraud illustrates how issues in Washington tend to percolate far beyond the halls of Congress.

Here’s what’s happening: A bill co-sponsored by consumer crusader Sen. Elizabeth Warren (D-MA) and key House member Maxine Waters (D-CA) has attracted headlines. It also has little chance of reaching the President’s desk, but still sparks worry in the credit union system.

The “Protecting Consumers from Payment Scams Act” is aimed at beefing up consumer protections in the event of fraudulent payments, allegedly initiated by a consumer through deceptive means, and sent to a bad actor through Zelle or similar platforms. The measure does three primary things:

 

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