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Unauthorized Debit Card Purchases

Answered by: 
Jim Bedsole

Question: 
We have a customer who gave her debit card and PIN to her medical aide (she is not in good health) to assist her with groceries etc. The aide has used her debit card for purchases unauthorized by our customer. The purchases were made as far back as July, '09. What liability does our bank have towards our customer for these unauthorized purchases?
Answer: 

Since your customer gave the aide the card and PIN (and I assume has not reclaimed that card), the customer would be liable for the charges that exceeded the authority, unless she had notified the bank that she was revoking the authority. If, on the other hand, the customer got the card back and then the aide subsequently stole the card and used it, those charges would be unauthorized and would be subject to the liability limits of Reg E.

First published on BankersOnline.com 11/02/09

First published on 11/02/2009

Filed under: 
Technology
Filed under technology as: 
IT

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