Answer:
When the loss or theft of an accepted access device is not involved in an unauthorized EFT, customer liability is limited solely by operation of Section 205.6(b)(3) of Regulation E. That means that the customer isn't liable for any unauthorized EFT that occurs before the 60-day period described in that section. For practical purposes, unless the transactions are part of a series, the 60-day limit will never be reached and the customer will not be liable for any unauthorized EFT. That essentially makes it the bank's decision on whether the transactions were authorized the deciding factor. Remember that if an unauthorized EFT involves an access device, it must be an accepted access device before you can impose any liability on the customer for the unauthorized EFT. See section 205.6(a).
First published on BankersOnline.com 9/01/08
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