A consumer who notifies the issuer of an EFT card within two (2) days after learning of a loss or theft of the card can be held to a maximum liability of $500 for unauthorized use of the card; failure to notify within this time will increase the consumer's liability for losses to a maximum of $5,000.

Question

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Under the Electronic Fund Transfer Act, if a consumer notifies the issuer within two business days after learning of the loss or theft of the card, the consumer's liability for unauthorized use is limited to $50. If the consumer fails to notify the issuer within two business days, the liability can increase to $500, not $5,000.

A Consumer Who Notifies the Issuer of an EFT Card