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Consumer Banking and Payments Law: G.6 Model Stored Value Card Protection Act

[Editor’s Note6]

1. Coverage.

This Act is intended to provide uniform standards, require transparent and fair terms, and simplify the rules governing electronic payments devices which are not comprehensively covered by other federal laws. This Act is a consumer protection act designed to ensure that the use of electronic payment devices facilitates commerce while the interests of consumers are protected. This Act shall be construed liberally to further its purpose to protect consumers.

Consumer Banking and Payments Law: Introductory Materials

15 U.S.C. §§ 7001—7031. The public law section number from the original enactment of the Electronic Signatures in Global and National Commerce Act (E-Sign Act), Pub. L. No. 106-229, 114 Stat. 464 (2000), is found in brackets at the end of the title of each codified section.

Title 15. Commerce and Trade

Chapter 96. Electronic Signatures in Global and National Commerce

Subchapter I—Electronic Records and Signatures in Commerce

Consumer Banking and Payments Law: 15 U.S.C. § 7001. General rule of validity

(a) In general

Notwithstanding any statute, regulation, or other rule of law (other than this subchapter and subchapter II of this chapter), with respect to any transaction in or affecting interstate or foreign commerce—

(1) a signature, contract, or other record relating to such transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form; and

Consumer Banking and Payments Law: 15 U.S.C. § 7003. Specific exceptions

(a) Excepted requirements

The provisions of section 7001 of this title shall not apply to a contract or other record to the extent it is governed by—

(1) a statute, regulation, or other rule of law governing the creation and execution of wills, codicils, or testamentary trusts;

(2) a State statute, regulation, or other rule of law governing adoption, divorce, or other matters of family law; or

Consumer Banking and Payments Law: 15 U.S.C. § 7004. Applicability to Federal and State Governments

(a) Filing and access requirements

Subject to subsection (c)(2) of this section, nothing in this subchapter limits or supersedes any requirement by a Federal regulatory agency, self-regulatory organization, or State regulatory agency that records be filed with such agency or organization in accordance with specified standards or formats.

(b) Preservation of existing rulemaking authority

(1) Use of authority to interpret

Consumer Banking and Payments Law: 15 U.S.C. § 7005. Studies

(a) Delivery

Within 12 months after June 30, 2000, the Secretary of Commerce shall conduct an inquiry regarding the effectiveness of the delivery of electronic records to consumers using electronic mail as compared with delivery of written records via the United States Postal Service and private express mail services. The Secretary shall submit a report to the Congress regarding the results of such inquiry by the conclusion of such 12-month period.

Consumer Banking and Payments Law: 15 U.S.C. § 7006. Definitions

For purposes of this subchapter:

(1) Consumer

The term “consumer” means an individual who obtains, through a transaction, products or services which are used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.

(2) Electronic

Consumer Banking and Payments Law: 15 U.S.C. § 7021. Transferable records

(a) Definitions—

For purposes of this section:

(1) Transferable record

The term “transferable record” means an electronic record that—

(A) would be a note under Article 3 of the Uniform Commercial Code if the electronic record were in writing;

(B) the issuer of the electronic record expressly has agreed is a transferable record; and

Consumer Banking and Payments Law: Introduction

The following analysis lists the citation and enactment date of state adoptions of the Uniform Electronic Transactions Act (UETA) and describes (1) any state variations from the uniform version of UETA, (2) whether a state has enacted E-Sign’s consumer protections, or (3) whether E-Sign’s consumer protections apply because of the timing of the enactment of state law. A state’s version of UETA supersedes certain E-Sign provisions.

Consumer Banking and Payments Law: ALABAMA

Ala. Code §§ 8-1A-2 to 8-1A-20

Date enacted: The Act was approved May 15, 2001, and effective January 1, 2002.

Non-Uniform Sections: § 8-1A-2(4): adds a definition of consumer; § 8-1A-8(e): restates language from 101(c); § 8-1A-13(b), admissibility in evidence: to determine authenticity and attribution, adds unique identifier language.

Consumer Banking and Payments Law: ALASKA

Alaska Stat. §§ 09.80.010 to 09.80.195

Date enacted: The Act was approved June 29, 2004, and effective July 1, 2004.

Non-Uniform Sections: § 09.80.130: adds a definition of “transferable record”; § 09.80.190: adds a definition of “Uniform Commercial Code.”

Consumer Banking and Payments Law: ARKANSAS

Ark. Code Ann. §§ 25-32-101 to 25-32-122

Date enacted: The Act was approved and effective March 19, 2001.

Non-Uniform Sections:§ 25-32-122: adds provision entitled “Signatures and records secured through blockchain technology—Definitions” (effective July 24, 2019, and 2021).

Consumer Banking and Payments Law: COLORADO

Colo. Rev. Stat. §§ 24-71.3-101 to 24-71.3-121

Date enacted: The Act was approved and effective May 30, 2002.

Non-Uniform Sections: § 24-71.3-102: adds qualification to definition of “transaction”; § 24-71.3-118: deletes certain subprovisions.

Consumer Banking and Payments Law: DELAWARE

Del. Code Ann. tit. 6, §§ 12A-101 to 12A-117 (after E-Sign enactment, but before effective date)

Date enacted: The Act was approved and effective July 14, 2000.

Non-Uniform Sections: § 12A-117, choice of forum: added section not in uniform law; statute omits optional uniform law sections on government.

E-Sign Consumer Protections: not explicit.

Consumer Banking and Payments Law: 7.2.17.4 Application of State Law to Credit on Prepaid Cards

Some payday lenders have attempted to use prepaid cards issued by banks to evade state usury and payday loan laws.

Because prepaid cards with credit features are typically issued by a bank, there might be preemption issues with regard to the application of state laws.802 But state laws may still apply to any non-bank parties involved in the transaction, as agents of national banks and federal savings associations are not entitled to preemption.803

Consumer Banking and Payments Law: 9.1 Overview

This chapter examines five different ways that individuals can receive Social Security, Supplemental Security Income (SSI), and other federal benefits. The chapter sets out advantages and disadvantages of the different ways and the legal limits and rights under each method of receiving federal benefit payments:

Consumer Banking and Payments Law: 9.2.2.2 When Direct Express Payments Are Not Available

The Treasury Department has arranged that federal payments can be made onto a Direct Express card, a prepaid card account offered in conjunction with the Treasury Department,18 but not all federal payments are eligible for deposit onto a Direct Express card.19 Payments not eligible to be deposited to the Direct Express card can be made by check, if the beneficiary prefers.20 However, once a form of payment becomes eligible for the Direct Express card, th