The Research Of U.S Unauthorized Electronic Funds Transfer Liability Rules

With more and more people accept and use electronic fund transfer, the risks which arebought by it also lead to many attentions. Unauthorized electronic funds transfer is one of themost representative and complexity risks. When the risk occurs, the most important problemwhich people cared about is the assuming of damages. According to the traditional theory oftort liability, first of all, the responsibility should be taken by unauthorized electronic fundstransfer. However, in real life, it’s hard to find unauthorized electronic funds transfer. Evenfound the unauthorized electronic funds transfer, due to the illegal proceeds are wiped out, itoften appears that the person unable to bear the responsibility. Therefore, this article maindiscussed the liability allocation rules between banks and clients. However, because ourcountry did not establish a system of unauthorized electronic funds liability allocation rules,this article hopes that through the research of United States unauthorized electronic fundstransfer liability allocation rules, giving some advises to establishment unauthorizedelectronic funds liability allocation rules which conform to the situation of China.Besides preface and epilogue, this article is divided into five parts:Part one: defined the relevant concepts of electronic funds transfer and unauthorizedelectronic funds transfer, introduce the responsibility of the parties involved in theunauthorized electronic funds transfer, and analyzed the legal relationship between banks andclients, clients and unauthorized electronic funds transfer, banks and unauthorized electronicfunds transfer. At the same time introduced the responsibility principle of unauthorizedelectronic funds transfer.Part two: mainly studied the unauthorized small-value electronic funds transfer liabilityallocation rules. This part mainly analyzed the conditions that customer must undertake thedue obligations about unauthorized credit card electronic funds transfer in Truth in LendingAct and the Regulation Z, and studied the unauthorized credit card electronic funds transferlimit liability rules. At the same time, this part also analyzed the condition of customerliability regarding unauthorized debit card electronic funds transfer in Electronic FundsTransfer Act and the Regulation E, and studied the unauthorized debit card electronic fundstransfer limit liability rules.Part three: mainly studied the unauthorized big-value electronic funds transfer liabilityallocation rules. This part through analyzed the key factors of banks from responsibility, the situation that customer responsibility when bank failed to use commercially reasonablesecurity procedure and liability when the customer was not the source of the security leak.And combined with related cases studied the American unauthorized large electronic fundstransfer liability allocation rules.Part four: mainly researched the unauthorized electronic funds transfer increase bankliability rules in the guidelines of The Federal Financial Institutions Examination Council.This part mainly discussed the2005Federal Financial Institutions Examination Councilguidance and its supplementary guidance about bank should implement multi-factor safetyprocedures and the provisions of the safety of the hierarchical framework, and concluded thatthis in fact increased the liability of bank in the second part and the third part introduced.Part five: through introduce the unauthorized electronic funds transfer liability allocationrules in our country, and in comparison with the unauthorized electronic funds transferliability allocation rules in the United States, analyzed the shortages of China and thencombined with the actual situation of China put forward improvement methods.