Originally appearing in Reuters on Nov. 13, 2023, Hannah Lang talks to NCLC Senior Attorney Carla Sanchez-Adams about how banks on the payment app Zelle have begun refunding victims of imposter scams to address consumer protection concerns raised by U.S. lawmakers and the federal consumer watchdog, in a major policy change.
Still, regulations mandating imposter fraud protections would be better for customers since lenders’ policies may be unclear or they may not follow them as promised, said Carla Sanchez-Adams, a senior attorney at the National Consumer Law Center.
“The one thing that I think is problematic is that the consumer really wouldn’t know that they have that option, and if they do know, and if the bank fails to reimburse them, there is no private remedy,” she said, noting Zelle’s policy change was nevertheless a “good first step.”
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