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#1550965 - 05/13/11 04:12 PM Reg E-Stolen Card
LittleBanker Offline
New Poster
Joined: Mar 2004
Posts: 22
Oklahoma
Scenario: Customer had his and his wife's Debit Cards in his vehicle and they were both stolen. Evidently, the PINs were written on the cards or otherwise accessible to the thief.

The card thief runs up about $2700 in PIN-based charges on the cards, combined. Several transactions were at an ATM, and others were POS transactions at stores. We're determining now, whether the store transactions were all PIN-based as well.

Is the bank liable to the customer for all of these charges?

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eBanking / Technology
#1550972 - 05/13/11 04:18 PM Re: Reg E-Stolen Card LittleBanker
BrianC Offline
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,685
Illinois
The answer depends on when the customer notified you that their card was lost/stolen.

Reg E allows you to assign the customer $50.00 of liability if the customer notifies you within 2 business days of their discovery that the cards were missing, $500.00 for charges between days 3-60, and unlimited for any transactions done in excess of day 60.
Note that these timeframes are based on the customer discovering the cards were missing, not the date of the first charge.

Also any signature based purchases would be given Zero Liability by VISA/MasterCard.

Sadly, the bank will be on the hook for most of this. You will have to make a risk based decision whether or not to give this couple a new set of cards.
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#1551002 - 05/13/11 04:51 PM Re: Reg E-Stolen Card BrianC
LittleBanker Offline
New Poster
Joined: Mar 2004
Posts: 22
Oklahoma
Thanks for your quick answer. They did notify us in a timely manner, so it appears we'll be responsible.

I'm not suprised, but wanted some confirmation.

I'm just curious - do many of you all out there take debit cards away from customers when they exhibit these types of irresponsible behaviors?

Thanks again.

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#1554566 - 05/20/11 04:19 PM Re: Reg E-Stolen Card LittleBanker
AuditorK Offline
Platinum Poster
Joined: Feb 2003
Posts: 962
PA
Originally Posted By: Dill's Mom
I'm just curious - do many of you all out there take debit cards away from customers when they exhibit these types of irresponsible behaviors?


We sure do! Obviously, its a judgement call, but its certainly an option.

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#1557611 - 05/27/11 01:49 AM Re: Reg E-Stolen Card AuditorK
Deputy Dawn Offline
Gold Star
Deputy Dawn
Joined: Feb 2007
Posts: 485
Pennsylvania
Just curious, did they file a report with the police?


Because their cards were cancelled when you found out they were stolen, you are not "taking away" their debit cards. You will not be issuing them a new card.

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