Legal Ease is a ‘question of the week’ chosen from actual calls and emails received by our compliance team. Specific questions posed by community bankers are answered in an easy to understand format. Citations to relevant regulations and commentary are routinely provided. A ‘compliance tip’ is usually included at the bottom of each Legal Ease as a best practice or something to watch out for. Past Legal Ease are included in a searchable archive here.
Question of the Week
Customer gets a SMS text message fraud alert that her debit card is being used at merchant ‘XYZ.’ The fraud alert asks if this is a legitimate transaction. Customer responds with a ‘yes.’ Customer received their statement and is now disputing that transaction and several subsequent transactions. Is the customer liable for these transactions since she responded in the affirmative to the fraud alerts?
Learn the answer here