Sec. 14.
(1) A customer shall not be liable for an unauthorized use of his or her account through an electronic fund transfer unless the depository institution can prove, without benefit of inference or presumption, that the customer's negligence substantially contributed to the unauthorized use and that the financial institution exercised reasonable care to prevent the loss. As used in this section customer negligence means only the following:
(a) Writing the personal identification number on the card or other means of affording access.
(b) Keeping the personal identification number with the card or other means of affording access.
(c) Voluntarily permitting the account accessing device, including the personal identification number and the card, to come into the possession of a person who makes or causes to be made an unauthorized use.
(2) If the customer fails to notify the depository financial institution of an unauthorized use within 30 days after the receipt of a statement conforming with section 18 and containing an unauthorized use, a customer shall be liable for a subsequent unauthorized use that could have been prevented by timely notification.
(3) A customer shall not be liable for further unauthorized use of his or her account by electronic fund transfer after the customer has reported that the means of access to his or her account has been lost or that the security of his or her personal identification number has been violated.
History: 1978, Act 322, Eff. Jan. 1, 1979
Structure Michigan Compiled Laws
Chapter 488 - Electronic Funds Transfers
Act 322 of 1978 - Electronic Funds Transfers (488.1 - 488.31)
Section 488.1 - Meaning of Words and Phrases.
Section 488.2 - Definitions; a to C.
Section 488.3 - Definitions; C to E.
Section 488.4 - Definitions; F to M.
Section 488.5 - Definitions; P to U.
Section 488.6 - Terminals, Facilities, or Functions to Which Act Inapplicable.
Section 488.9 - Funds Transfer Facility; Restrictions.
Section 488.13 - Issuance of Card or Means of Access to Customer's Account; Requirements.
Section 488.17 - Receipt Evidencing Electronic Fund Transfer; Time; Costs.
Section 488.18 - Statement of Customer's Account; Frequency; Contents.
Section 488.19 - Written Agreement of Terms and Conditions Governing Account; Time; Contents.
Section 488.20 - Options to Promote Security of Electronic Fund Transfers.
Section 488.21 - Civil Action for Violation; Liability.
Section 488.23 - Restraining Trade or Engaging in Anticompetitive Practices.
Section 488.24 - Unauthorized Transactions Prohibited.
Section 488.25 - Applicability of Antitrust Laws.
Section 488.26 - Application of State or Federal Statute to Credit or Deposit Account Relationships.
Section 488.29 - Wilful Violation as Misdemeanor; Penalty.