Bill > H815

This bill proposes to amend Chapter 167B of the General Laws by adding a new section, 10A, which would require financial institutions to pay late fees or reimburse consumers for any fines, penalties, or late charges imposed by a third party if the institution fails to conduct a preauthorized electronic transfer authorized by a consumer, unless the failure is due to reasons already outlined in section 10. The financial institution would have five days from discovering the error or from when the consumer reports it to make this payment or reimbursement, including any associated interest. Furthermore, if a financial institution willfully and knowingly fails to comply with this new requirement, the consumer would be entitled to treble damages, meaning three times the amount of the damages, as determined by a specific clause in section 20. This legislation aims to hold financial institutions accountable for errors in processing electronic transfers that result in financial penalties for their customers.