I feel your pain - we do what is right & the bank down the street doesn't = They might even require the customer to file a police report (not allowed), or have a policy that says your card was not lost/stolen & you have always had the card in your possession therefore you must have done the transaction (not allowed).
BUT The interpretation that matters is the regulators & here is the direct quote from the Commentary to Reg E (emphasis addeed)
6(b) Limitations on Amount of Liability
1. Application of liability provisions. There are three possible tiers of consumer liability for unauthorized EFTs depending on the situation. A consumer may be liable for (1) up to $50; (2) up to $500; or (3) an unlimited amount depending on when the unauthorized EFT occurs. More than one tier may apply to a given situation because each corresponds to a different (sometimes overlapping) time period or set of conditions.
2. Consumer negligence. Negligence by the consumer cannot be used as the basis for imposing greater liability than is permissible under Regulation E. Thus, consumer behavior that may constitute negligence under state law, such as writing the PIN on a debit card or on a piece of paper kept with the card, does not affect the consumer's liability for unauthorized transfers. (However, refer to comment 2 m 2 regarding termination of the authority of given by the consumer to another person.)
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My opinions are just that, and might be worth what you paid for them.