NCJ Number
109056
Journal
Fordham Urban Law Journal Volume: 14 Issue: 1 Dated: (1985-1986) Pages: 171-209
Date Published
1986
Length
39 pages
Annotation
The perpetration of robbery or assault on a customer in the course of an automatic teller machine (ATM) withdrawal raises issues of legal liability for the attendant loss.
Abstract
Under commonly accepted tort principles, an owner often is held liable for harm to patrons intentionally caused by third parties on business premises if the owner has failed to exercise reasonable care under the circumstances to protect the patron. The Electronic Fund Transfers Act establishes basic rights, liabilities, and responsibilities of consumers and financial institutions. In addition, Regulation E limits consumer liability for unauthorized transfers, including any withdrawals made by a customer pursuant to a threat of force. The duty of care and grounds for liability should vary according to the features of the particular ATM used at the time of the crime. Courts should adopt flexible guidelines reflecting the spirit of consumer protection in existing legislation. Courts should impose a duty upon the banks to provide reasonable protection for their customers against criminal attack at ATM facilities. 251 footnotes.