Compliance Question of the Week
November 26, 2013
Nov. 26, 2013
If our member writes their PIN number on their debit card and a thief uses that debit card with the PIN number to take money out of the account, does the credit union still have to pay even though the member’s own negligence caused the loss?
Yes. As unfortunate as this may be, the Commentary to the Electronic Funds Transfers Act says that “negligence by the consumer cannot be used as a basis for imposing greater liability than is permissible under Regulation E.” The Commentary goes on to give “writing the PIN on the debit card” as an example of negligence.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.
Posted in Compliance News.