FINANCIAL SERVICES: SAVINGS PLANS AND PAYMENT ACCOUNTS

Jamie Lee Jackson, age 26, is in her last semester of college and is anxiously awaiting graduation day, which is just around the corner! She still works part-time as a bakery clerk, has been sticking to her budget the past two years, and is on track to accumulate enough money for the $9,000 down payment she needs to open her cupcake caf within the next two years.

Jamie Lee is still single, shares a small apartment with a friend, and continues to split all of the associated living expenses, such as rent and utilities. Unfortunately, she now has to seriously consider finding a place of her own.

One evening, after returning to the apartment after a long shift at the bakery, Jamie learned that her roommate had a couple of friends over earlier in the evening. As Jamie went to her room, she noticed that her top desk drawer had been left open and her debit/ATM card, as well as her checkbook and Social Security card, were missing. She immediately contacted the authorities, and the police instructed her to notify her financial institution immediately. But it was late Saturday night, and Jamie thought she had to now wait until Monday morning. Unfortunately, within no time, Jamie found that her checking account had been emptied!

Jamie Lee's luck worsened, as she had paid many of her monthly bills late last week. Her automobile insurance, two utility bills, and a layaway payment had all been paid for by check. Her bank almost immediately began sending overdraft alerts through her smartphone for the emptied checking account.

Current Financial Situation

Bank Accounts:

Checking account, $2,250 (before the theft)

Savings account, $6,900

Emergency fund savings account, $3,900

401(k) balance, $350

Questions

1. Jamie Lee is beside herself knowing that the thieves had unauthorized use of her debit/ATM card. What is Jamie's financial responsibility for the unauthorized use?
2. What would have been Jamie Lee's financial liability had she waited more than two days to report the debit/ATM card lost or stolen?