Mom gives daughter #1 permission to use debit card & pin to rent a moving truck and fill it with gas. Daughter #1, for whatever reason, gives the card to daughter #2 to go rent the truck and fill it with gas. Daughter #2 also takes the liberty of using the card at the local department store and restuarant. Mom says daughter #2 was not authorized and wants us to give her back the money.

So, are the department store and restuarant transactions authorized?

It seems to me that mom authorized #1 to use the card. The fact that she used it by giving it to #2, shouldn't be our expense, but something tells me . . . .

Please tell me its not true and where, either way, I can look it up. Sorry-new to this side of the office.

I would be happy to give her the money back and file a claim, if she is willing to either herself or us to contact the police and file a report and allow us to prosecute daughter #2 for theft and fraud.

Oh-I'm sure we will, if we have to pay. But do we have to pay?

I'm not an expert, but I would say yes. She did not authorize daughter #2 to use the card. Daughter #1 has no authority to authorize someone else to use it.

Unfortunately, I agree with MN Banker.

How does your Debit Card Agreement read? We have that scenario in our Debit Card Agreement. Should a 4th party become involved in a transaction due to the customer giving permission to a third party and the third party gives the card/pin to the 4th party. the customer assumes liability and the bank assumes customer gave permission for use.

You may want to ask some more questions about whether daughter #2 was present with daughter #1 when Mom gave her instructions to daughter #1. You should also ask Mom for more details on what she told daughter #1. Depending on the answers given by Mom you might have a basis for determining that Mom also authorized daughter #2 to use the card. The point about checking your disclosure agreement is well taken as you may have addressed this situation in your agreement.

I don't want to rain on your attorney's parade, PStalfort, but I don't think that an agent can appoint a subagent without the express approval of the principal. In other words, I don't think your debit card provision will stand up in court. But I am not an attorney, and will defer to someone who is with a different opinion.

Did Momma benefit in any way from wayward daughter #2's purchases at the department store or restaurant? If not, I think you're stuck with refunding those transactions if Momma files the claim with you. You may or may not be able to wring the money back out of her daughter.