Complex Systems with Patrick McKenzie (patio11) The magic spell that makes banks give you your money back
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Jan 8, 2026 Dive into the world of consumer protection as Regulation E takes center stage. Discover how this law safeguards over 100 million complaints, far outpacing the court system. Hear about Zelle’s growing fraud issues and banks' attempts to sidestep liability. Explore the unique chargeback system that powers online transactions and empowers consumers. Patrick shares personal anecdotes that highlight the significance of these protections, illustrating how they adapt to emerging threats in the digital payment landscape.
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Reg E Built A Private Consumer Court
- Regulation E creates a national, industry-run consumer-protection system for electronic payments.
- It shifts dispute-resolution costs onto banks and their contractors, enabling low-friction refunds that power modern commerce.
Ghostwriting Letters And Learning Reg E
- Patrick McKenzie describes ghostwriting dispute letters for strangers when he was underemployed in his 20s.
- That experience shaped his appreciation for Reg E as a tool ordinary people can use without legal expertise.
Chargebacks Are A Cheap Private Justice System
- Card networks implement a high-frequency chargeback waterfall that enforces consumer-friendly outcomes cheaply.
- This privately-run process handles hundreds of millions of disputes with minimal formal legal overhead.