I'm not a Reg. E expert by any means, so can someone confirm that I am correct?

Customer called saying that they had given their debit card number to a person and they went and purchased items that they weren't supposed to. Our employee told her that because she had given them their card number that it wasn't considered unauthorized. I believe they are wrong and this should be processed under the error resolution process. I liken it to someone giving out their ATM card to get cash, and then the person takes out more than authorized.

If I am correct, then the department that handles Reg. E claims definitely needs additional training.

2(m) Unauthorized Electronic Fund Transfer

2. Authority. If a consumer furnishes an access device and grants authority to make transfers to a person (such as a family member or co-worker) who exceeds the authority given, the consumer is fully liable for the transfers unless the consumer has notified the financial institution that transfers by that person are no longer authorized.