CFPB Rule Promotes Fraud?


Card issuers said the CFPB’s final prepaid rule will make it easier for scammers to commit fraud on unregistered cards since the banks would not have any information about the consumer, American Banker reported, in turn making it difficult to investigate. “’Companies are going to get calls from people saying someone is using their card, even though the card does not have their name on it and the institution does not know anything about the customer,’ said David Beam, a partner at Mayer Brown. ‘It’s difficult to follow error resolution procedures on someone you don’t know.’”

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