Credit Unions Ask Congress To Help With Security Breaches

Maya Jackson Randall reports:

Credit unions are asking U.S. lawmakers this holiday shopping season to help address identity theft and fraudulent charges, saying the new financial overhaul makes it harder to offset the cost of such security breaches.

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Credit unions, which issue payment cards for consumers, often charge-off fraud-related losses and also spend money trying to re-establish safety for members after a breach.

But the group said the new package of sweeping financial laws known as the Dodd-Frank Act limits credit unions’ ability to charge merchants’ fees known as interchange fees that would normally help offset the cost of addressing data security breaches.

The credit union group is arguing that retailers should be held more accountable for fraud.

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