(a) Action or failure to act proximately causing damagesSubject to subsections (b) and (c), 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—
(B)
the funds are subject to legal process or other encumbrance restricting such transfer;
(C)
such transfer would exceed an established credit limit;
(E)
as otherwise provided in regulations of the
Bureau;
(b) Acts of God and technical malfunctionsA financial institution shall not be liable under subsection (a)(1) or (2) 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) 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.
(
Pub. L. 90–321, title IX, § 910, as added
Pub. L. 95–630, title XX, § 2001,
Nov. 10, 1978,
92 Stat. 3735; amended
Pub. L. 106–102, title VII, § 705,
Nov. 12, 1999,
113 Stat. 1465;
Pub. L. 111–203, title X, § 1084(1),
July 21, 2010,
124 Stat. 2081.)
{'misc': '', 'cleanpath': '/uscode/text/15/1693h', 'headtext': ' Liability of financial institutions', 'cfr_titles': [{'title': '12', 'parts': [{'part': '533', 'cleanpath': '/cfr/text/12/part-533', 'headtext': ''}, {'part': '555', 'cleanpath': '/cfr/text/12/part-555', 'headtext': ''}]}, {'title': '14', 'parts': [{'part': '374', 'cleanpath': '/cfr/text/14/part-374', 'headtext': 'IMPLEMENTATION OF THE CONSUMER CREDIT PROTECTION ACT WITH RESPECT TO AIR CARRIERS AND FOREIGN AIR CARRIERS'}]}], 'section': '1693h'}