We received an EFT dispute where the customer lost the card but the PIN was written on the back of the card. Can we refuse this claim as the customer didn't safeguard the PIN?
No, unfortunately a customer’s negligence doesn’t protect the bank from liability. The commentary to Reg E provides clarification:
CONSUMER NEGLIGENCE. Negligence by the consumer cannot be used as the basis for imposing greater liability than is permissible under Regulation E. Thus, consumer behavior that may constitute negligence under state law, such as writing the PIN on a debit card or on a piece of paper kept with the card, does not affect the consumer's liability for unauthorized transfers. (However, refer to comment 2(m)-2 regarding termination of the authority of given by the consumer to another person.)
OFFICIAL INTERPRETATION TO 6(b)
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