On July 16, the Sixth Circuit held that the Federal Electronic Funds Transfer Act (EFTA) does not provide for an implied right of indemnification or contribution, and preempts indemnification claims under the Michigan Electronic Funds Transfer Act (“MEFTA”) and common law, when a bank reimburses customers for unauthorized electronic transfers, even if the unauthorized transfers were caused by the entity from which indemnification is sought.… Continue Reading
unauthorized transactions
CFPB expected to issue new guidance requiring banks to repay more fraud victims
By John L. Culhane, Jr. & Michael Gordon on
According to a WSJ report, the CFPB is preparing to release new guidance that would require banks to make refunds to victims of scammers who defraud consumers into sending money to a third party using an online money-transfer platform. The WSJ indicates that the CFPB’s possible action is being driven by an increase in consumer complaints to the CFPB about such scams.… Continue Reading