Consumer gave debit card pin to a friend in the past per her statement to police. She kept her card in her car, but allowed the friend to retrieve an item from the car an in the process he took the card.

She never contacted us to indicate he no longer had authorization to use her card.
And we feel she was negligent in protecting her card from risk of theft by leaving it in her car and giving the keys to access the car to the friend.

All but one transaction were PinBased. The other Visa processed.

Does she have a valid claim...we understand the card was stolen, but it was taken by the person whom she had given pin info to in the past and did not revoke. So is it really a stolen card?

I'd say so. I think you said so, too.

IMO, it is a valid claim. I'd consider it stolen since he returned it after the previous authorized use, but subsequently took it again without permission.

Had he retained possession all the while, I'd say he exceeded authority and deny the claim based on 1005.2(m).

What Bobby said ^^^^.

Being careless or negligent has never been a valid reason for being denied protection under Regulation E.

But there is nothing to prevent the bank from informing its customer that her card has been canceled and will not be replaced, once it resolves the current claim.