Darla had $750 in her checking account when her debit card was stolen. assuming the thief made $525 in purchases with the card, how much could she save by reporting the stolen atm card immediately rather than waiting more than three months before reporting the theft?

Question

Jaylene Christensen

Business

13 August, 05:08

Darla had $750 in her checking account when her debit card was stolen. assuming the thief made $525 in purchases with the card, how much could she save by reporting the stolen atm card immediately rather than waiting more than three months before reporting the theft?

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Eliza Griffin · Answer 1

Answer: The thief had already made $525 in purchases; however by reporting the loss of the debit card immediately, her loss is limited to $50. Hence she can save $475.

The Electronic Fund Transfer Act (EFTA) limits the loss of funds depending on how quickly loss of card is reported.

If a person reports the loss of the card immediately before unauthorized transactions the debit card holder will not lose anything.

If loss of a debit card is reported within two business days after discovering the theft, the debit card holder will lose a maximum of $50.

If loss of a debit card is reported after three months of the theft, the debit card holder will be responsible for all the losses arising from unauthorized transactions.