H.R. 9331, Bank Fraud-Loss Protection via Depositor Fund Delays. Quorum's AI analysis reads it as a net cost — and names who bears it.

What it does

This bill amends the Expedited Funds Availability Act to allow banks to hold checks and wire transfers longer when they suspect fraud, up to 10 days initially and 45 days extended. It also lets regulators temporarily suspend the normal fast-availability rules for certain check types during periods of high fraud losses, and requires banks to notify customers when funds are held on fraud suspicion. The bill aims to reduce check and wire fraud losses borne by banks and the Treasury, but gives banks broad discretion to delay customer access to deposited funds.

The analysis names depository institutions (banks and credit unions) — and 1 more group — among the beneficiaries.

The cost

The 'reasonable suspicion' standard is subjective and defined only as 'indicators that would lead a reasonable person to suspect fraud'—no objective threshold, creating risk of over-holding and inconsistent application across banks.

The analysis put a high warning level on this bill. Transparency scores 55%, and the analysis found no provisions unrelated to the bill's subject.

Who is behind it

Filed by Young Kim. Cosponsored by Michael Lawler, Sylvia Garcia and Vicente Gonzalez.