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Bill

S 6299

Limits the liability of a debit cardholder for unauthorized use of a debit card

2025 Regular Session Introduced by James Sanders

S 6299 - Limits the Liability of Debit Cardholders OverviewBill Number: S 6299 Title: Limits the liability of a debit cardholder for unauthorized use of a debit cardStatus: REFERR

REFERRED TO CONSUMER PROTECTION
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Bill Summary · S 6299

S 6299 - Limits the Liability of Debit Cardholders

Overview

Bill Number: S 6299
Title: Limits the liability of a debit cardholder for unauthorized use of a debit card
Status: REFERRED TO CONSUMER PROTECTION
Introduced: March 10, 2025

Purpose and Intent

The primary goal of this bill is to provide greater consumer protections for debit card users by limiting their liability for unauthorized transactions. Currently, debit card users can face significant financial burdens if their card is lost or stolen, as they are often held responsible for fraudulent charges. This bill aims to align debit card liability policies more closely with the stronger protections already in place for credit card users.

Key Provisions

  • Limits a debit cardholder's liability for unauthorized transactions to $50, regardless of when the unauthorized use is reported
  • Requires financial institutions to extend the same $50 liability limit to debit card users as is currently provided to credit card users under the Fair Credit Billing Act
  • Prohibits financial institutions from holding debit card users responsible for unauthorized transactions if the institution failed to provide adequate notice of the user's liability limits
  • Mandates that financial institutions investigate reported unauthorized transactions and promptly credit the user's account for the disputed amount

Affected Parties and Impacts

This bill would primarily benefit debit card users by significantly reducing their potential financial exposure in the event of card theft or fraud. It would also place new requirements and obligations on financial institutions that issue debit cards, requiring them to provide clearer disclosures and more robust fraud investigation and resolution processes.

Procedural and Timeline Considerations

S 6299 has been referred to the Senate Committee on Consumer Protection, where it will undergo further review and potential amendments before being considered by the full Senate. If passed by the Senate, the bill would then move to the House for consideration. Given the consumer-friendly nature of the legislation, it has garnered bipartisan support and is expected to advance through the legislative process, though the timeline for final passage remains uncertain.

Compiled from official sources — confirm details with the bill’s official record.

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