Q: Can consumers be held liable for unauthorized debit card transactions if they wrote their PIN on the back of the stolen card?
A: No. Negligent consumer behavior, such as writing the PIN on the back of an ATM/debit card or on a piece of paper kept with the card, doesn’t affect the consumer’s liability for unauthorized transfers under Regulation E (Electronic Fund Transfers).
The sole determinant of the consumer’s liability is his or her promptness in reporting the loss or theft of an access device, per Section 1005.6(b) of Reg E.
Q: Must a member be notified 21 days in advance of the credit union’s cancellation of his debit card?
A: No. The Consumer Financial Protection Bureau's Official Staff Commentary to Section 1005.8(a)(2) of Regulation E states that the cancellation of an access device (such as an ATM/debit card) doesn’t require the 21-day advance notice.
The credit union should, however, notify the member as soon as reasonably possible so the member will know the card may no longer be used.
Q: Does the law prohibit a federal credit union from being closed longer than three consecutive days?
A: No law or regulation prohibits a federal credit union from being closed longer than three consecutive days. However, when a credit union closes for longer than usual (e.g., during the holidays), at least some back-office staff should be clearing checks, handling wire transfers, and performing other required functions.
Some states have laws regarding emergency closings, holiday closings, etc., that might limit some state-chartered institutions from closing for longer than three consecutive days.
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