Chapter 14, Problem 14AA

To determine

To evaluate:The steps that can be adopted by a person whose ATM card is stolen or used illegally, according to the Electronic Funds Transfer Act of 1978.

Explanation of Solution

1978 Congress developed consumer rights and responsibilities, as well as the duties of all participants in electronic funds transfers. The Electronic Fund Transfer Act is a federal statute that protects customers when they electronically transfer money, including the debit card uses, ATMs, and automatic withdrawals from an account.

If a suspected person makes purchases by fraudulent accounts then it will be the product of identity fraud.

It takes 60 days for an illegal transaction to be reported to y financial institution via the act. The time limit starts from the date of the first periodic statement containing the transaction.

Notify the bank immediately after missing or robbed ATM or debit card. As soon as possible, file the complaint, so that person will no longer be responsible for unauthorized use of the pass. If within two days a complaint is registered then the act limits liability up to $50. It can lose its value to $500 if it reported within 60 days of loss.

Economics Concept Introduction

Introduction: The Electronic Funds Transfer Act covers the customers when electronically exchanging the funds. In 1978, Due to the increased use of ATMs, EFTA was introduced. Safety EFTA includes ATM transactions, debit cards, cash deposits, and point of sale and mobile transactions.