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Unauthorized electronic transfer liability

Consumer protection

Definition

Federal limits on how much you lose when someone uses your debit card or account without permission, based on how fast you report it.

What it means

The Electronic Fund Transfer Act and the CFPB's Regulation E protect consumers when money is taken from a bank account by unauthorized electronic transfers, such as a stolen debit card, a hacked online account or a fraudulent ACH debit. If your card or access device is lost or stolen and you tell the bank within two business days after learning of it, your loss is limited to $50. After that, the limit is generally $500. If you do not report an unauthorized transfer within 60 days after the statement showing it was sent, you could be liable for later transfers. The bank must investigate errors, usually within 10 business days, or provisionally credit your account while taking up to 45 days. Credit cards have a separate $50 cap.

Example

Someone uses your stolen debit card for $1,200. Reporting within two business days limits your loss to $50; reporting on day 10 can raise it to as much as $500.

Illustrative numbers only. Your situation will differ.

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