What happens if you lose your ATM card according to the Electronic Funds Transfer Act?

The correct answer highlights a consumer protection provided under the Electronic Funds Transfer Act (EFTA). If you lose your ATM card, the EFTA ensures that you will not be held liable for unauthorized transactions that occur after you report the loss or theft of your card. This means that if someone were to use your card fraudulently, as long as you report it in a timely manner, you won't bear the financial responsibility for those losses.

It's important to act quickly and inform your bank about the loss or theft of your ATM card, as the potential for liability does increase if you wait too long to report the incident. Typically, if you report the loss within two business days, your liability for unauthorized transactions is limited to a set amount. The more time that passes before reporting, the more responsibility could fall on you.