Not Limitations on Liability in EFT

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Electronic Fund Transfer (EFT) is a type of financial transaction conducted through an electronic medium, such as an ATM or online banking. The EFT Act, also known as the Electronic Fund Transfer Act (EFTA), establishes the rights and liabilities of consumers, financial institutions, and third-party service providers in connection with electronic fund transfers.

The limitations on liability in EFT are the maximum amounts that a consumer can be held responsible for in case of unauthorized electronic fund transfers. The limitations on liability depend on several factors, including when the consumer reports the unauthorized transfer, the type of access device used, and the state laws that govern the transaction.

Let's review each option in turn:

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

This statement is a correct limitation on liability. If a consumer loses their access device, such as a debit card or mobile device, or if it is stolen, the consumer is liable for a maximum of $50 if the consumer notifies the institution within two business days of discovering the loss or theft. If the consumer does not notify the institution within two business days, the consumer's liability is up to $500.

B. If state law has more generous limitations of liability for the consumer, the state laws will govern

This statement is a correct limitation on liability. If the state law where the consumer lives has more generous limitations of liability, such as lower liability limits or longer reporting periods, those state laws will govern the transaction.

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.

This statement is a correct limitation on liability. If a consumer fails to report an unauthorized transfer within 30 days of the institution's transmission of the statement on which the first unauthorized transfer appears, the consumer may be held fully liable for the unauthorized transfer. However, if the institution can establish that the unauthorized transfers would not have occurred if the consumer had reported them within the 30-day period, the consumer's liability may be limited. It's worth noting that this unlimited liability only applies to transactions that occur after the 30-day period.

D. Extenuating circumstances (such as hospital confinements, travel, and so forth) may extend the liability time periods.

This statement is incorrect. The EFTA does not provide for any extenuating circumstances that can extend the liability time periods. The consumer must report any unauthorized transactions within the specified time limits, regardless of any extenuating circumstances that may exist.

In summary, option D is the answer to the question as it is the only statement that is not a correct limitation on liability under the EFTA.