As the effort to develop a faster payments system continues apace, the CFPB added its perspective about how consumer protections might best be integrated into new payments mechanisms.
Specifically, the bureau said that consumers should have clear control of authorizing payments, disclosure of how and to whom data are shared, real-time status and confirmation information and high levels of security. The bureau also stated that any faster payments system should provide consumers with Reg E and Reg Z protections from fraud and error, that transactions should be “affordable” and that overdrafts should decline. Consumers should also be able to make and receive payments through a wide variety of providers, both banks and nonbanks.
Read the principles.