HB332 requires the Maryland Commissioner of Financial Regulation to adopt consumer protection regulations for domestic electronic funds transfers made by financial institutions operating in the state. The bill is framed as the “Elder Fraud Prevention Act of 2025” and is intended to ensure that consumers receive protections consistent with those available under the federal Electronic Fund Transfer Act, including for certain transfers that may otherwise fall within federal exemptions.
The bill adds a new section to the Commercial Law Article governing electronic funds transfers. It directs the Commissioner to regulate financial institutions that initiate domestic electronic funds transfers under Title 4A and states that consumer wire transfers involving electronic fund transfers ancillary to bank-to-bank wire services are subject to the federal Electronic Fund Transfer Act of 1978. It also includes a severability-style provision: if the law is found inapplicable to federally chartered or out-of-state chartered institutions, the act is automatically abrogated.
The bill’s practical impact is to expand or clarify consumer protections in Maryland for electronic payments and wire-related transfers, especially where state law may otherwise leave gaps. It affects financial institutions operating in Maryland and potentially broadens the regulatory reach of the Commissioner of Financial Regulation over domestic transfer activity. The measure is set to take effect October 1, 2025.
Overall sentiment appears favorable. The House committee reported the bill favorably with amendments, the House adopted the committee report, and the bill passed third reading by a wide margin of 111 yeas to 27 nays. No committee transcript was provided, but the strong vote suggests broad support for consumer protection measures tied to fraud prevention, particularly for older adults.
The main point of contention is likely the scope of state regulation over electronic funds transfers and whether the bill can lawfully apply to federally chartered or out-of-state financial institutions. The bill’s fallback provision suggests lawmakers anticipated possible preemption or jurisdictional challenges. Another likely issue is the balance between consumer protections and compliance burdens on banks and other financial institutions.
Impact
HB332 adds new consumer-protection regulation authority in the Commercial Law Article for domestic electronic funds transfers and related wire-transfer activity. It directs the Commissioner of Financial Regulation to adopt rules consistent with the federal Electronic Fund Transfer Act, potentially extending protections to transactions that might otherwise be exempt under federal law. The bill affects financial institutions operating in Maryland, including possible implications for federally chartered and out-of-state chartered institutions, and it becomes effective October 1, 2025.
Sentiment
The bill appears to have been received positively overall. The House Economic Matters Committee issued a favorable report with amendments, the House adopted the report, and the bill passed third reading by a substantial bipartisan margin of 111-27. The title and framing as the Elder Fraud Prevention Act suggest the measure was viewed as a consumer-protection and anti-fraud initiative, which likely contributed to the strong support.
Contention
The likely areas of contention are the breadth of the Commissioner’s authority and whether Maryland can require these protections for institutions that are federally chartered or chartered outside the state. The bill’s automatic abrogation clause indicates concern about legal limits and preemption. Financial institutions may also have raised compliance and operational concerns about extending consumer-protection rules to domestic electronic funds transfers and wire-service transactions.