Absent-minded Alfred lost his debit card on May 1.He reported it missing the next day; however,$600 had been already purchased with the card without the use of his PIN number.According to the Electronic Funds Transfer Act,how much of this $600 loss is Alfred responsible for?
A)$0
B)$50
C)$500
D)$600

Question

Quizplus · Accepted Answer

According to the Electronic Funds Transfer Act, if a customer reports the loss or theft of their debit card within two business days of discovering the loss, they are not liable for any unauthorized transactions. In this case, Alfred reported the loss the day after he discovered it, which is within two business days. Therefore, he is only responsible for a maximum of $50, regardless of the amount spent on the card without his PIN. Hence, the correct answer is B.

Absent-Minded Alfred Lost His Debit Card on May 1