§1693g Consumer Liability

Summary

Sets a cap on what a consumer must pay if someone makes an unauthorized electronic transfer from their account. A consumer is only responsible when the stolen card or other access method was one the bank accepted and the card issuer had a way to identify the rightful user (for example, by signature, photo, fingerprint, or electronic confirmation). The consumer’s loss can never be more than $50 or the amount taken before the bank is told or reasonably learns about the problem, whichever is smaller. Telling the bank is enough when the consumer follows the normal, reasonable steps to give the bank the needed information, even if no particular employee actually receives it. If there’s a dispute, the bank must prove the transfer was authorized or that the rules above apply. If a related disclosure rule was in effect when the transfer happened, the bank must also prove it gave the required notices. If the transaction also used an agreed overdraft credit, the consumer’s limit on liability is decided only by these rules. Nothing here increases a consumer’s liability beyond other laws or any agreement with the bank. Except as described above, a consumer has no liability for an unauthorized transfer.