Exam CRCM topic 1 question 197 discussion

The correct answer is C. Increased liability for the consumer. The prerequisites for consumer liability under Unauthorized transfers-12 CFR 205.6 (Regulation E) include conditions such as the use of an accepted access device, a means for the institution to identify the consumer to whom the device was issued, and written disclosures by the institution regarding consumer's liability, contact information for reporting unauthorized transfers, and the institution's business days. These prerequisites are designed to establish a framework within which consumer liability for unauthorized electronic fund transfers is determined. Option C, "Increased liability for the consumer," is not a prerequisite for establishing consumer liability; rather, it is a potential consequence depending on the circumstances of the unauthorized transfer and whether the conditions for limited consumer liability are met.