A customer lost her card on Sunday afternoon, I happened to call her the next Friday as a "courtesy" to let her know about her Overdrafts. She then said "oh Duh. Yeah I lost my debit card on Sunday" She had no reason for not reporting the stolen card she just didn't think anyone would use it. MY POINT is: OK, she's liable for up to the $500.00 - that I have determined - HOWEVER, do I still send the transactions back? and if I do, and we get credit. does SHE get this credit? She really didn't report the card lost/stolen, it just so happened that I called her for another reason. ????

Just me thinking out loud, but regardless of who initiated the call, once she told you the card was lost, the "report" happened then. You should definitely try to send back the transactions if possible. I believe if you get reimbursed for all or part of the transactions, you cannot hold the customer liable for any more than your bank is out, otherwise your bank would be profiting from the unauthorized activity.

GD is correct. And watch out for the liability calculation. As an example, if the withdrawals all happened within the first two business days, the customer has a $50 liability. So those returns may decrease your loss.

Thanks Guys! All transactions actually happened 2-5 days later! So yes, she's liable for those transactions... and a lot of them were gas purchases...shoe, clothes shopping etc...small amounts - but a ton of them. Good Seminar the other day Andy.
Mary

If the transaction slips come back with a signature - even if it's not hers - the Bank takes the loss. The only way you can take this matter further is if you recover the lost card and can prove that the signature on the back does not match her signature. Also keep in mind MasterCard/Visa's Zero Liability rule, if it applies in this case.