Question

Betty opened her monthly bank statement and noticed an unauthorized electronic funds withdrawal. In order for her to not be liable for the withdrawal, how long does she have to notify her bank (from the date of the bank statement)?

Answer 1

Betty must notify her bank about the unauthorized withdrawal within 60 days from the date of her bank statement to ensure she is not liable, or within two business days to limit her liability to $50.

Step-by-step explanation:

If Betty has noticed an unauthorized electronic funds withdrawal on her bank statement, she is protected under the Electronic Fund Transfer Act. This Act provides consumers with certain protections against unauthorized transactions. Betty needs to notify her bank within 60 days from the date of the bank statement that shows the unauthorized withdrawal. If she reports the unauthorized withdrawal within two business days of learning about it, she could be liable for up to $50. However, if she reports the incident after two business days but within the 60-day window provided, she might be liable for up to $500. It's crucial to act as soon as possible to ensure the least liability.