§ 1693g. — Consumer liability.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC1693g]
TITLE 15--COMMERCE AND TRADE
CHAPTER 41--CONSUMER CREDIT PROTECTION
SUBCHAPTER VI--ELECTRONIC FUND TRANSFERS
Sec. 1693g. Consumer liability
(a) Unauthorized electronic fund transfers; limit
A consumer shall be liable for any unauthorized electronic fund
transfer involving the account of such consumer only if the card or
other means of access utilized for such transfer was an accepted card or
other meanas \1\ of access and if the issuer of such card, code, or
other means of access has provided a means whereby the user of such
card, code, or other means of access can be identified as the person
authorized to use it, such as by signature, photograph, or fingerprint
or by electronic or mechanical confirmation. In no event, however, shall
a consumer's liability for an unauthorized transfer exceed the lesser
of--
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\1\ So in original. Probably should be ``means''.
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(1) $50; or
(2) the amount of money or value of property or services
obtained in such unauthorized electronic fund transfer prior to the
time the financial institution is notified of, or otherwise becomes
aware of, circumstances which lead to the reasonable belief that an
unauthorized electronic fund transfer involving the consumer's
account has been or may be effected. Notice under this paragraph is
sufficient when such steps have been taken as may be reasonably
required in the ordinary course of business to provide the financial
institution with the pertinent information, whether or not any
particular officer, employee, or agent of the financial institution
does in fact receive such information.
Notwithstanding the foregoing, reimbursement need not be made to the
consumer for losses the financial institution establishes would not have
occurred but for the failure of the consumer to report within sixty days
of transmittal of the statement (or in extenuating circumstances such as
extended travel or hospitalization, within a reasonable time under the
circumstances) any unauthorized electronic fund transfer or account
error which appears on the periodic statement provided to the consumer
under section 1693d of this title. In addition, reimbursement need not
be made to the consumer for losses which the financial institution
establishes would not have occurred but for the failure of the consumer
to report any loss or theft of a card or other means of access within
two business days after the consumer learns of the loss or theft (or in
extenuating circumstances such as extended travel or hospitalization,
within a longer period which is reasonable under the circumstances), but
the consumer's liability under this subsection in any such case may not
exceed a total of $500, or the amount of unauthorized electronic fund
transfers which occur following the close of two business days (or such
longer period) after the consumer learns of the loss or theft but prior
to notice to the financial institution under this subsection, whichever
is less.
(b) Burden of proof
In any action which involves a consumer's liability for an
unauthorized electronic fund transfer, the burden of proof is upon the
financial institution to show that the electronic fund transfer was
authorized or, if the electronic fund transfer was unauthorized, then
the burden of proof is upon the financial institution to establish that
the conditions of liability set forth in subsection (a) of this section
have been met, and, if the transfer was initiated after the effective
date of section 1693c of this title, that the disclosures required to be
made to the consumer under section 1693c(a)(1) and (2) of this title
were in fact made in accordance with such section.
(c) Determination of limitation on liability
In the event of a transaction which involves both an unauthorized
electronic fund transfer and an extension of credit as defined in
section 1602(e) of this title pursuant to an agreement between the
consumer and the financial institution to extend such credit to the
consumer in the event the consumer's account is overdrawn, the
limitation on the consumer's liability for such transaction shall be
determined solely in accordance with this section.
(d) Restriction on liability
Nothing in this section imposes liability upon a consumer for an
unauthorized electronic fund transfer in excess of his liability for
such a transfer under other applicable law or under any agreement with
the consumer's financial institution.
(e) Scope of liability
Except as provided in this section, a consumer incurs no liability
from an unauthorized electronic fund transfer.
(Pub. L. 90-321, title IX, Sec. 909, as added Pub. L. 95-630, title XX,
Sec. 2001, Nov. 10, 1978, 92 Stat. 3734.)
Section Referred to in Other Sections
This section is referred to in section 1693f of this title.
