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"The shift of the form factor isn't going to affect consumer liability," Ms. McNelley said.
Federal law already limits consumer liability in cases of card fraud to a maximum of $50 in most situations, and banks usually waive even that amount.
But it's unlikely that the new chip cards will result in any changes to consumer liability in the United States, says Julie McNelley, an analyst specializing in retail banking with Aite Group.
Venezuela has virtually no consumer liability legislation, its courts are notoriously corrupt and lawyers say that the regulations accompanying a new Constitution approved last December have made it even harder than in the past for victims who win civil actions to recover damages from those responsible for their losses.
Federal law limits consumer liability for credit cards to $50 and ATM cards to between $50 and $500.
Enforceable legal frameworks such as those that limit consumer liability, safeguard funds, and establish dispute resolution procedures can help consumers feel safe accessing financial services digitally, particularly when that channel is new to them.
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At the peak of the housing boom, consumers' liabilities rose above 130 percent of their disposable income.
In most cases, federal law limits a consumer's liability for purchases made with a stolen card or card number to $50, and many card issuers will absorb the $50, too, if the theft is reported promptly.
These regulations limit a consumer's liability for unauthorized electronic transactions when using credit cards and debit cards.
Similar regulations are needed in the fintech context to clarify questions regarding a consumer's liability for harms following from delegated account access.
Prior to her work with the Coalition, Ms. McCullough worked as a government affairs consultant, and before that she served as a Counsel for the U.S. Senate Committee on Commerce, Science, and Transportation where she worked on subcommittees that oversaw many Internet, privacy, auto safety, insurance, and consumer product liability issues.
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