Account Fraud and Deception Prevention Act of 1990

Account Fraud and Deception Prevention Act of 1990 - Amends the Electronic Fund Transfer Act to prohibit preauthorized transfers from a consumer's account which are made on the basis of: (1) any form of negotiation of any check by the consumer; and (2) a provision contained on any check negotiated by a consumer.

 
HR 5742 IH
101st CONGRESS
2d Session
 H. R. 5742
To amend the Electronic Fund Transfer Act to provide that the endorsement,
deposit, transfer, or other form of negotiation of a check by any consumer
may not constitute the authorization of the consumer to make any preauthorized
electronic fund transfer from the consumer's account, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
September 27, 1990
Mr. VENTO (for himself, Mr. LEHMAN of California, Mr. ANNUNZIO, Ms. OAKAR,
Mr. KANJORSKI, Mr. KLECZKA, and Ms. PELOSI) introduced the following bill;
which was referred to the Committee on Banking, Finance, and Urban Affairs
A BILL
To amend the Electronic Fund Transfer Act to provide that the endorsement,
deposit, transfer, or other form of negotiation of a check by any consumer
may not constitute the authorization of the consumer to make any preauthorized
electronic fund transfer from the consumer's account, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Account Fraud and Deception Prevention Act
  of 1990'.
SEC. 2. PROHIBITION ON DECEPTIVE PRACTICES RELATING TO ELECTRONIC FUND
TRANSFERS FROM ACCOUNTS.
  (a) IN GENERAL- Section 907 of the Electronic Fund Transfer Act (15
  U.S.C. 1693e) is amended by adding at the end the following new subsection:
  `(c) PROHIBITION ON CERTAIN DECEPTIVE PRACTICES INVOLVING PREAUTHORIZED
  TRANSFERS FROM ACCOUNTS-
  `(1) IN GENERAL- No preauthorized electronic fund transfer, or any other
  electronic fund transfer, from any consumer's account may be made on the
  basis of any endorsement, deposit, transfer, or other form of negotiation
  of any check by the consumer.
  `(2) NO PROVISION ON ANY CHECK MAY CONSTITUTE AUTHORIZATION OF CONSUMER- No
  provision contained on any check which is endorsed, deposited, transferred,
  or otherwise negotiated by any consumer may be treated as constituting the
  authorization of the consumer to make any preauthorized electronic fund
  transfer, or any other electronic fund transfer, from the consumer's account.
  `(3) REGULATIONS- The Board shall prescribe such regulations as may be
  necessary to carry out the purposes of this subsection.
  `(4) CHECK DEFINED- For purposes of this subsection, the term `check'
  has the meaning given to such term in section 602(7) of the Expedited
  Funds Availability Act.'.
  (b) SCOPE OF APPLICATION- The amendment made by subsection (a) shall apply
  with respect to any electronic fund transfer on and after the date of
  the enactment of this Act without regard to the date of the endorsement,
  deposit, transfer, or other form of negotiation of the check which, but
  for the enactment of such amendment, would constitute the authorization
  of the consumer to make any such transfer.