Sinn Féin MEP Chris MacManus has secured a “big win for consumers against fraudsters” in a vote in Strasbourg today.
MacManus’ amendment which has been adopted in the final version of the “Instant credit transfer in euro” file means that each time a consumer makes an instant credit transfer in euro their bank or other provider must provide them a free “name check” to make sure they are transferring to who they think they are transferring to.
“I am delighted my amendment has been adopted in the final law adopted here in Strasbourg. Payments scams are a major issue and at home Pearse Doherty has led the campaign to tackle them and to empower consumers. Today, in the European Parliament, the Parliament has adopted a strong position making “name checks” free. By doing so, thanks to my amendment, these checks will actually be used by consumers.”
“Banks or other payment service providers will have to check the name against the name on the account and report back to the consumer stating whether the names are a ‘match’, meaning that no discrepancy is detected between the payment account identifier and the name of the payee; a ‘close match’, meaning that the name of the payee almost matches with the payment account identifier provider or ‘no match’, meaning that the name and the payment account identifier do not match or even ‘unavailable’, meaning that the payment account does not exist or could not be verified.”
“By following this process, ordinary workers and consumers will be empowered to know who they are actually transferring to. By making this check free my amendment has vastly improved this service and made it so that it will be at no cost to consumers.”
“This legislation will at first only apply to “instant payments” which all banks will now have to offer but it has been agreed that it will be used as the template for pending wider legation for all electronic payments.”
“That makes it a big win for consumers and a big blow to fraudsters. People should always be on their guard but through this amendment they now have an important new weapon in the fight against scammers. I urge the EU not to delay in implementing this new important rule and indeed believe that Ireland could act even quicker and make this happen as soon as possible.”