Committee Rejects Debit Card Liability Bill

A proposal to increase protections for debit card users stumbled in the Legislature when it failed to win the support of a key committee. Assembly Bill 1638 fell one vote short of passing the Assembly’s Banking and Finance Committee. But proponents described the setback as temporary and said the measure will probably be approved when it is reconsidered by the committee next week. The bill would limit a debit card holder’s liability to $50 should the card be stolen and used fraudulently--the same protections enjoyed by credit card holders. Further, the measure has been amended to require financial institutions to reimburse swindled cardholders within five business days. Debit cards, also called check cards, withdraw money directly out of a customer’s bank account and, unlike ATM cards, do not require a personal identification number to access.