We have a customer who opened a minor savings account for their child, and the teller ordered an ATM card not realizing we do not allow access devices on minor accounts. Nevertheless, the custodian admittedly gave the minor the card to withdraw funds from ATM machines, and now we have received 5 EFT claims for PIN based ATM withdrawals. Custodian states that card was stolen and the suspect obtained the PIN when her son went to an ATM. Suspicious, but not sure if an ATM card tied to a UTMA account is covered under Reg E? I couldn't locate any specifics, so any direction would be appreciated. Thanks!

Thanks

Melissa -- Do yourself a favor before turning this customer away. Talk with management about the situation. Getting the bank's name in the local newspaper for refusing the claim based on a technicality of Regulation E coverage may not be something that management wants to face. Give the facts -- dollar amounts and the information that Reg E is probably not implicated -- to management and let them decide whether to --

1. Turn the customer away and cancel the card

2. Accept the claim and cancel the card

3. Accept the claim without regard to Regulation E and cancel the card.

If you read those options to suggest that allowing the card to remain active isn't a good idea, you're right.