Question

Betty loss her ATM card on Sunday. There were two charges on her account that she did not make. One purchase was for gas in the amount of $65 and the second purchase was for some clothing ordered online for $1000.   Betty notified the bank on Monday that she lost her card and their were two charges which were unauthorized.   Betty is responsible for how much of the unauthorized purchases.

Group of answer choices

a) $50

b) $0

c) $1065

d) $1000

e) $65

Answer 1

The federal Electronic Fund Transfer Act (EFTA) protects you from errors, loss or theft of your debit card. However, unlike the Truth in Lending Act protections for credit cards, which cap a consumer's liability for unauthorized transactions at $50, the law limits liability to $50 if the debit cardholder notifies the bank within two business days after discovering the theft.

Hence, as Betty lost her Debit card on Sunday and informed the bank about it on Monday (within 2 business days), she is responsible for the unauthorized purchases of only $50.

The correct answer is Option a) $50.