State Senator proposes debit card hold protection

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Updated: Wed, 26 Feb 2014 11:27:00 CST

One State Senator is proposing a bill that would protect Nebraskans from debit card preauthorization holds.

Scottsbluff Senator John Harms introduced LB 880. It would require businesses to inform a customer if preauthorization hold practices are being conducted.

A preauthorization hold is an approval for a debit card transaction in an amount greater than the amount of the actual purchase to provide funds for any further charges.
Notifications would notify customers through oral or electronic communications.
Harms say the bill aims to protect the low income families who cannot afford debit holds.

The committee took no immediate action on the bill.