“Thus, consumer behavior that may constitute negligence under state law…does not affect the consumer’s liability for unauthorized transfers.” “Negligence by the consumer cannot be used as the basis for imposing greater liability than is permissible,” the rules say. For example, even writing a PIN code on a debit card doesn’t increase the consumers’ liability if the card is stolen and used to make withdrawals. Even negligence doesn’t increase the consumer’s liability, banking regulators have said. Consumer liability for losses is capped at $50 or $500, depending on how quickly a consumer reports fraud once it is discovered. Federal banking regulations concerning unauthorized electronic funds transfers are very consumer-friendly. Those risks aren’t completely clear, however. They need to understand there are risks associated with giving out their user name and password, be it to a third-party service or a neighbor.” “Clearly customers want to be able to use services like this. “Our job is to make sure consumers can make their own choices based on all the available information,” she said. She also said the post should not be interpreted as Chase telling consumers not to use any specific service, such as Mint. It was published out of a desire to put that provision of the user agreement into plain language. Wexler said the post was not aimed at any particular third-party service, and she did not know of any incident which led to the post. Trish Wexler, a senior vice president at Chase pointed out that similar language was present in the Chase user agreement long before the April post: “If you disclose your Card numbers, account numbers, PINs, User IDs, and/or Passwords to any person(s) or entity, you assume all risks and losses associated with such disclosure.” If you choose to share account access information with a third party, Capital One is not liable for any resulting damages or losses.”Ĭhase’s new posting is probably the result of the recent increase in high-profile hacks, Perez speculated. “One of the reasons that Capital One prohibits this type of sharing is that we may not have any information regarding the use of or security environment around this sensitive information at any third party. “Sharing your Capital One access credentials (with third parties) may represent a breach by you of applicable [agreement or terms and conditions),” it reads. Here is language from Capital One’s agreement: Several banks have language in their user agreements telling consumers not to share login information with third parties. Holly Perez, a Mint spokeswoman, said the warning was not really new. So I asked Mint what it thought about Chase’s post. The warning is broad, but popular sites like, which perform item-by-item analysis of consumers’ accounts, stand to lose the most if consumers heed the warning. The page goes on to advise consumers who’ve already shared their passwords to immediately change them - and of course, not give the new login information to the third party. In other words, if one of those third parties gets hacked and a criminal takes your money, you could lose it all. But if you’re giving them your User ID and Password, you could be responsible for money you might lose as a result.” “Some websites and software offer tools to help you with budgeting, managing accounts, investing, or even doing your taxes. “If you give out your User ID and Password, you are putting your money at risk,” says a page titled Guard Your ID and Password.
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