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Refusal to Close Debit Card - Bank Liability?

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Question: 
We have a client who has an unauthorized debit card transaction in his account. The client refuses to close the card because of other pre-authorized transactions he has already set up through it. If more unauthorized transactions come in from the same place as the original one, is the bank still liable for the loss even if the client refuses to close the card?
Answer: 

It is not up to the client to determine whether or not to close the card and reissue. If the bank chooses to allow the card to remain open, then the bank continues to remain liable to the customer under the limitations of Regulation E for unauthorized transactions.

First published on BankersOnline.com 9/07/09

First published on 09/07/2009

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