Capital Briefs: Proposal Would Limit Debit Card Loss to $50

Reps. Henry Gonzalez, D-Tex., and Charles Schumer, D- N.Y., plan to introduce legislation next week that would cap consumer liability for stolen debit cards at $50.

Their proposal also would require debit card solicitations to disclose that the cards can be used without a personal identification number.

"Debit cards, while a convenience for consumers, are also a convenience for thieves," Rep. Gonzalez said in a written statement Thursday. "This legislation will arm consumers with appropriate protections."

Rep. Schumer plans to unveil the bill Sunday at a news conference in New York.

The bill would bring debit cards consumer protections in line with those of credit cards, rather than automated teller machine cards. Liability for ATM cards rises to $500 if the issuer isn't notified within 48 hours after a card is lost. Liabilities are unlimited if a lost ATM card isn't reported after six months.

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