A-Z of Reg E

Presented by:
Andy Zavoina

One consumer survey on credit/debit card use revealed that more than 67 million Americans used their card to make a purchase of less than $5 the prior month. Debit card use is increasing for the smallest of purchases and this increase in volume means an increase in claims. When there is a loss, who loses the money? In most cases you already know, you do!

The question is, are you losing more than you should, or less, either way you lose. On a national morning news show there was a segment on which is better for a consumer, a debit card, or a credit card. One comment was that they were the same as to liability. This isn't so under Reg E and Reg Z. You have to know the difference.

And Regulation E is more than just the investigations of claims for unauthorized use. There are disclosure requirements, rules for the issuance of an access device, liability disclosures, and contract issues when you offer a branded debit card. And the regulation changes from time to time. Recently the e-disclosure provisions changed and Visa announced a fee change that may impact your Reg. E and DD disclosures.

In this webinar, we'll discuss basic requirements you must meet for Reg E, plus there will be a focus on claims for unauthorized withdrawals from a customers account. These can be handled in one of three ways:

1. They can all be refused and the bank saves money.
2. They can all be paid and the customers are happy.
3. They can be properly investigated and paid according to the regulation.

Obviously there is one way to do this without exposing the bank to needless liability, civil money penalties and without emptying the vault to fraudsters. You have to know when a claim is valid and has to be paid, and when it is not. Otherwise, you are cheating the bank, or the customer.

With Reg. E changes for merchants and receipt requirements, as well as the increase in use and claims, how can you not afford to work as efficiently as possible? We'll explore the claims process so that you can determine the cost effectiveness of taking a claim, investigating and going through the necessary steps to communicate with your customer. At what point is it just cheaper to pay the claim and what safeguards should you take to avoid abuse?

What You Will Learn:

Regulatory hotspots, what is being violated and how to avoid it in your bank

Workflow for Reg. E claims

Tips and tricks to effectively compute liability for unauthorized withdrawals

The definitions that guide the regulation

The basic disclosure requirements of Reg. E

What is a covered EFT

Exceptions and special provisions

What are the liability limits for unauthorized withdrawals

Ways the compliance officer can audit the process Disclosure issues still lead to complaints at the regulator's customer assistance areas. It is important that your staff have the basics of Reg. E clearly understood. It is equally important that you understand the claims procedures. If claims are done wrong once, and then continue that way, the losses can be extreme. You need the confidence that everyone is following the same procedure and that it is according to the regulation, no more, no less.

This webinar is focused on Regulation E and not on ACH or branded debit card rules specific to any brand.



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About the speaker:

Andy Zavoina Mr. Andy Zavoina, CRCM, is a consultant with the Glia Group, best known for its involvement with BankersOnline.com.

Andy has been in finance and banking for 22 years. Over 20 years were with a holding company with two Central Texas community banks that had $534 million in assets, 89 branches spanning Texas and nearly 500 ATMs. After starting in loan workouts, Mr. Zavoina has been a consumer, commercial and real estate lender and managed those departments as well as being the banks first Webmaster. He was responsible for compliance- management, -auditing, and -training for both banks.

Andy is a past Chairman of the American Bankers Association's Compliance Executive Committee. He was the 2003 recipient of the American Bankers Association's Distinguished Service Award for his involvement and accomplishments in the field of regulatory compliance management. He currently serves on the Editorial Advisory Board for the ABA's Compliance Magazine, Compliance Action magazine, is a member of the ABA's Compliance School Board and is a BankersOnline Guru. He also served on the Texas Bankers Association's Compliance Committee.

He is a graduate of the ABA National Commercial Lending School, National Compliance and National Graduate Compliance School and is a Certified Regulatory Compliance Manager with the Institute of Certified Bankers. He has written numerous articles and lectured on compliance, the use of the Internet and technology as a tool, as well as compliance in cyberspace to local, state and national associations. Internet policies and other compliance related programs are made available on his personal Web site.

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