Answer:
Answer by Brian Crow: They can dispute the charges, but if your investigation determines that the child whom they provided authorization to use their card made the additional purchases, you have the right to deny the claim based on the staff commentary to the definition of an unauthorized electronic funds transfer.
Section 1005.2(m)(2) Authority. If a consumer furnishes an access device and grants authority to make transfers to a person (such as a family member or co-worker) who exceeds the authority given, the consumer is fully liable for the transfers unless the consumer has notified the financial institution that transfers by that person are no longer authorized.
I wonder how many years of allowance money the kid spent.
Answer:
Answer by John Burnett: One could argue that the parent, when allowing the child unsupervised access to the purchase-capability using the parent's debit card, had no idea the child would overstep his/her bounds. That doesn't serve as an excuse from liability, though.
Kids are a lot more savvy than they let on when it comes to all things electronic. When my four-year-old grandson demonstrated he could buy games without any help from an adult, his parents quickly added some controls.
First published on BankersOnline.com 4/1/13
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