(a) A debit cardholder shall be liable for an unauthorized use of a debit card only if all of the following conditions are met:
(1) The card is an accepted debit card.
(2) Except as provided in subdivision (b), the liability is not in excess of fifty dollars ($50).
(3) The debit card issuer has given adequate notice to the debit cardholder of the potential liability.
(4) The debit card issuer has provided the debit cardholder with a description of the means by which the debit card issuer may be notified of loss or theft of the card.
(5) The unauthorized use occurs before the debit card issuer has been notified by the debit cardholder that an unauthorized use of the debit card has occurred or may occur as a result of loss, theft, or otherwise.
(6) The debit card issuer has provided a means to identify the debit cardholder to whom the debit card was issued.
(b) Notwithstanding subdivision (a), if the debit cardholder fails to report an unauthorized use that appears on a periodic statement within 60 days of the debit card issuer’s transmittal of the statement, and if the issuer establishes that an unauthorized use would not have occurred had the debit cardholder notified the issuer within the 60-day period, the debit cardholder shall be liable for the amount of each unauthorized transfer that occurs after the close of the 60 days and before notice to the issuer. If the debit cardholder’s delay in notifying the debit card issuer was due to extenuating circumstances beyond the debit cardholder’s reasonable control, the time specified above shall be extended by a reasonable period. For the purposes of this subdivision, examples of extenuating circumstances include, but are not limited to, extended travel, the death or serious illness of the debit cardholder or a member of the debit cardholder’s family, hospitalization, permanent mental impairment, or serious physical impairment, unless the circumstance did not reasonably contribute to the cardholder’s delay in notifying the debit card issuer within the 60-day period.
(c) A debit cardholder shall have no liability for erroneous or fraudulent transfers initiated by a debit card issuer, its agent, or employee.
(Added by Stats. 1999, Ch. 244, Sec. 1. Effective January 1, 2000.)