Section 63.07. Allocation of liability.

 

(1)   Between credit union and third parties. Each activity authorized under s. 186.113 (15) , Stats., shall be conducted in accordance with a written agreement between the credit union and any participating merchant, service center, data processor or other third party, setting out the manner in which liability from errors, malfunctions or the unauthorized use of a remote terminal will be allocated between the parties.

(2)   Limited customer liability for unauthorized use.

(a) The liability of a customer of a credit union for the unauthorized use of a plastic card or other access device to a remote terminal shall be determined as follows:

3. If the customer notifies the credit union within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the credit union.

4. If the customer fails to notify the credit union within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $500 or the sum of all of the following:

a. $50 or the amount of unauthorized transfers that occur within the 2 business days, whichever is less.

b. The amount of unauthorized transfers that occur after the close of 2 business days and before notice to the credit union, if the credit union establishes that these transfers would not have occurred had the customer notified the credit union within that 2-day period.

5. A customer must report an unauthorized transfer from the unauthorized use of a plastic card or other access device to a remote terminal that appears on a periodic statement within 60 days of the credit union's transmittal of the statement to avoid liability for subsequent transfers. If the customer fails to do so, the customer's liability may not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the credit union and that the credit union establishes would not have occurred had the customer notified the credit union within the 60-day period. When a plastic card or other access device is involved in the unauthorized transfer, the customer may be liable for other amounts set forth in subd. 3. or 4. , as applicable.

6. If the customer's delay in notifying the credit union as provided in subd. 5. was due to extenuating circumstances, the credit union shall extend the time specified in subd. 5. to a reasonable period.

7.

a. Notice to a credit union is given when a customer takes steps reasonably necessary to provide the credit union with the pertinent information, whether or not a particular employee or agent of the credit union actually receives the information.

b. A customer may notify the credit union in person, by telephone, or in writing.

c. Written notice is considered given at the time the customer mails the notice or delivers it for transmission to the credit union by any other usual means. Notice may be considered constructively given when the credit union becomes aware of circumstances leading to the reasonable belief that an unauthorized transfer to or from the customer's account has been or may be made.

8. If an agreement between the customer and the credit union imposes less liability than is provided by this section, the customer's liability may not exceed the amount imposed under the agreement.

(b) A customer furnishing another person with a plastic card or other access device to the customer's account through a remote terminal shall be deemed to authorize all transactions that may be accomplished by that means, until the customer has given actual notice to the credit union that further transactions are unauthorized.

Cr. Register, March, 1978, No. 267 , eff. 4-1-78; 2013 Wis. Act 136 : am. (2) (a) (intro.), r. (2) (a) 1., 2., cr. (2) (a) 3. to 8., am. (2) (b) Register March 2014 No. 699 , eff. 4-1-14.