Bill > H1111

This bill proposes to amend Chapter 167B of the Massachusetts General Laws by adding a new section that requires financial institutions to take responsibility for electronic transfer failures. Specifically, if a financial institution fails to complete a preauthorized transfer authorized by a consumer (for reasons other than those already specified in existing law), and this failure results in the consumer being charged fines, penalties, or late fees by a third party, the financial institution must either pay those charges directly to the third party or reimburse the consumer. The bill mandates that the financial institution must resolve this within 5 days of either discovering the error internally or being notified by the consumer. Furthermore, if a financial institution willfully and knowingly fails to comply with this requirement, the consumer would be entitled to receive triple the damages as determined under existing legal standards. This legislation aims to protect consumers from financial harm caused by institutional errors in electronic transfers and provides a clear mechanism for addressing such situations.