Does the Error Resolution Notice Change the Terms?
Answer by John Burnett, BOL Guru
Question: Does an error resolution notice on the back of a bank statement make Reg E apply to commercial accounts, even though Reg E does not cover commercial accounts? Our bank statements are preprinted with this on them, and we use them for consumer and business accounts alike.
Answer: I don't believe this brings the commercial accounts under Regulation E. However, you raise an excellent point. Banks should try to draw bright lines wherever possible. The statement on the back concerning error resolution might have a heading reading: "Notice to Consumer Accounts."
First published on BankersOnline.com 9/6/04
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