Which of the following is/are NOT limitations on liability in EFT?
Which of the following is/are NOT limitations on liability in EFT?
In the context of electronic funds transfers (EFT), limitations on liability are generally governed by specific rules. According to EFT regulations, the liability limit for unauthorized transfers is typically $50 if the consumer notifies the institution within two business days, making the $150 figure in option A inaccurate. Additionally, the consumer has 60 days (not 30 days as mentioned in option C) to report unauthorized transactions to avoid full liability for subsequent transfers. Therefore, these two options contain inaccuracies regarding the actual limitations on liability in EFT.
Poorly worded question. Fix it! Option C outlines the conditions under which full liability may be imposed on the consumer for unauthorized transfers. It specifies that if the consumer fails to notify the institution within 30 days of the transmission of the statement containing the first unauthorized transfer, the consumer may be held fully liable for subsequent unauthorized transfers.
It is A and C, page 634 of the online book. A should be $50 not $150 and C should be 60 days not 30 days.