T-Mobile Defeats Michigan Credit Union’s Bid for Fraud Payments

T-Mobile US Inc. doesn’t have to reimburse a Michigan credit union for fraudulent payments customers suffered as a result of a so-called SIM swap scam, a federal appeals court ruled.

Michigan First Credit Union and similar financial institutions aren’t entitled to indemnification for fraudulent payments incurred due to the problems on T-Mobile’s network, and the mobile phone network isn’t required to provide any contribution to making customers whole under the Electronic Fund Transfer Act, a unanimous panel of the US Court of Appeals for the Sixth Circuit found Tuesday.

The EFTA is a 1978 law governing consumer protections in credit, ...