Question

Tammy's ATM card is stolen. If she notifies the issuer of the card of the theft within two business days of theft, Tammy will be liable for ____________ of unauthorized use.

a. $50
b. $100
c. $500
d. $1,000

Answer 1

If Tammy notifies the issuer of the stolen ATM card within two business days of the theft, she will be liable for $50 of unauthorized use.

Step-by-step explanation:

If Tammy notifies the issuer of the ATM card within two business days of the theft, she will be liable for no more than $50 of unauthorized use. This liability cap is consistent with federal regulations concerning electronic fund transfers, including those related to ATM and debit card theft. This provision is designed to limit consumer losses in case of theft or unauthorized use, as long as the consumer promptly reports the issue to the card issuer.