KS - Unauthorized Trans. Liab and Reg E.

Posted By: Patricia

KS - Unauthorized Trans. Liab and Reg E. - 08/09/13 08:21 PM

The bank is withholding $50.00 from Reg E claims for unauthorized transfers. The customer has not lost or stolen their card. I am saying we cannot do this and have gotten the same answer from posters on BOL. However management is looking at KS Statute 9 -1111d (b)(1) and saying it is okay to withhold $50.00. Any thoughts from other Kansas bankers would be appreciated.
Posted By: rlcarey

Re: KS - Unauthorized Trans. Liab and Reg E. - 08/09/13 08:33 PM

I can tell you State law does not override Federal law and VISA and MasterCard rules regardless of what it says. When it comes to the benefit of the consumer, the least restrictive law is the one that has to be applied.
Posted By: Patricia

Re: KS - Unauthorized Trans. Liab and Reg E. - 08/15/13 01:59 PM

Thank rlcarey.