Certified Regulatory Compliance Manager (CRCM) — Question 185

Which of the following is/are NOT limitations on liability in EFT?

Answer options

• A. $150 liability limit if consumer notifies the institution within two business days of discovery of loss or theft of access device, not including the day the consumer learns of the loss or theft
• B. If state law has more generous limitations of liability for the consumer, the state laws will govern
• C. Full liability (up to the amount of the unauthorized transfer) may be imposed if the consumer does not notify the institution within 30 days of the institution's transmission of the statement on which the first unauthorized transfer appears (to raise the liability limit, the institution must first establish that the unauthorized transfers would not have occurred if the consumer had notified the institution within the 30 days). The unlimited liability applies only to the transactions that occur after the 30-day time period
• D. Extenuating circumstances (such as hospital confinements, travel, and so forth) may extend the liability time periods

Correct answer: A, D

Explanation

Options A and D are not limitations on liability because they provide specific conditions that must be met for liability to apply. Option A sets a liability limit conditionally based on prompt notification, while Option D suggests that certain situations can extend liability timeframes, which are not limitations. Options B and C, however, describe valid conditions under which liability limitations apply.