Submission - Joint response to the Review of the Electronic Funds Transfer Code of Conduct (2008)

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Proposal E1

• E1Q1 Do you agree with this proposal? Please give reasons.

 

E1Q1 Do you agree with this proposal? Please give reasons.

ASIC has proposed making consumers liable for unauthorised transactions that occur because a card is left in an ATM, where the ATM is configured so as to shut down automatically after 40 seconds if the consumer does not remove their card.

Consumer stakeholders do not support an arbitrary application of liability to consumers in all such cases. These cases should continue to be treated on their individual merits. There will be some situations where a consumer leaves the card in the machine due to illness. This might include a fainting spell or angina attack, or perhaps a more serious medical event.

There is also a new trend in robberies where consumers are distracted by a person ‘seeking help’ or ‘spilling water’ on them as they use an ATM or leave a bank with cash. While they are distracted their cash, wallet or card is stolen, and this form of attack could be extended.

Consumer stakeholders recommend that this new provision should be dropped OR a test of recklessness on the part of the consumer should be added to the provision.

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