15 U.S.C. § 1693h : US Code - Section 1693H: Liability of financial institutions

Search 15 U.S.C. § 1693h : US Code - Section 1693H: Liability of financial institutions

(a) Action or failure to act proximately causing damages
Subject to subsections (b) and (c) of this section, a financial
institution shall be liable to a consumer for all damages
proximately caused by -
(1) the financial institution's failure to make an electronic
fund transfer, in accordance with the terms and conditions of an
account, in the correct amount or in a timely manner when
properly instructed to do so by the consumer, except where -
(A) the consumer's account has insufficient funds;
(B) the funds are subject to legal process or other
encumbrance restricting such transfer;
(C) such transfer would exceed an established credit limit;
(D) an electronic terminal has insufficient cash to complete
the transaction; or
(E) as otherwise provided in regulations of the Board;
(2) the financial institution's failure to make an electronic
fund transfer due to insufficient funds when the financal (!1)
institution failed to credit, in accordance with the terms and
conditions of an account, a deposit of funds to the consumer's
account which would have provided sufficient funds to make the
transfer, and
(3) the financial institution's failure to stop payment of a
preauthorized transfer from a consumer's account when instructed
to do so in accordance with the terms and conditions of the
account.
(b) Acts of God and technical malfunctions
A financial institution shall not be liable under subsection
(a)(1) or (2) of this section if the financial institution shows by
a preponderance of the evidence that its action or failure to act
resulted from -
(1) an act of God or other circumstance beyond its control,
that it exercised reasonable care to prevent such an occurrence,
and that it exercised such diligence as the circumstances
required; or
(2) a technical malfunction which was known to the consumer at
the time he attempted to initiate an electronic fund transfer or,
in the case of a preauthorized transfer, at the time such
transfer should have occurred.
(c) Intent
In the case of a failure described in subsection (a) of this
section which was not intentional and which resulted from a bona
fide error, notwithstanding the maintenance of procedures
reasonably adapted to avoid any such error, the financial
institution shall be liable for actual damages proved.
(d) Exception for damaged notices
If the notice required to be posted pursuant to section
1693b(d)(3)(B)(i) of this title by an automated teller machine
operator has been posted by such operator in compliance with such
section and the notice is subsequently removed, damaged, or altered
by any person other than the operator of the automated teller
machine, the operator shall have no liability under this section
for failure to comply with section 1693b(d)(3)(B)(i) of this title.