The customer called and said that her card had been lost since Christmas. After Christmas, she had $414.02 of charges that she says is unauthorized. When she was questioned as to why she didn’t call and have the card statused lost/stolen, she said that she thought she would find it. She also said that she thought her son’s girlfriend had taken the card.
Our Debit Card Agreement says that if you know your card/code is lost/stolen and you do not notify us within 2 business days, you could lose as much as $500.00. It also says if we could prove that the losses would not have been incurred if you had called, you could lose as much as $500.00 (standard Reg E language). Then it states the $0 liability except where grossly negligent or engaged in fraud language.
Of course, if she would have called us, we would have blocked the card and none of the charges would have been approved.
Can this be considered gross negligence for $0 liability and therefore we then comply with the standard Reg E liability rules?
Thanks