Mobile Financial Services: The Need for a Comprehensive Consumer Protection Law

Abstract

The article first describes mobile financial services for consumers and the types of companies participating in the provision of those services. Anticipated consumer problems are explored, including: security, privacy, unauthorized transfers, error resolution, viruses, system breakdown, consumer mistake, and the need for documentation and a history of transactions. Public policy and government regulatory issues are examined. Applicable U.S. state and federal laws are reviewed; their gaps and inadequacies are identified. The article concludes with a description of a proposed Model Law that provides satisfactory consumer protection.

Keywords: consumer protection, mobile, cell phones, privacy, security, consumer, banking, financial services, regulation, law, financial transfers, transactions, mobile financial services, banks

JEL Classification: G21, K29, K29, K19, Z00