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#106379 - 08/14/03 06:48 PM Reg E-Immediate Resolution
Anonymous
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We are in debate about whether or not Reg E paperwork should be completed if a customer comes in and says that he/she did not receive the money requested at the ATM. On the Retail side, they would like to give the money back to the customer immediately (if shown posted on the customer's account) without completing Reg E paperwork-case closed. On the Compliance side, the consensus is that Reg E paperwork should be completed regardless since this was an issue that a customer brought to the bank's attention. Compliance feels that it's fine to give immediate (provisional) credit but the paperwork should be completed. Retail disputes and says no other research will be done so why should they go through the hastle of paperwork. Any thoughts?

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Operations Compliance
#106380 - 08/14/03 07:04 PM Re: Reg E-Immediate Resolution
John Burnett Offline
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Quote:

Retail disputes and says no other research will be done so why should they go through the hastle of paperwork. Any thoughts?


I understand Retail's position, but I'm not sympathetic. Your bank needs to document its error-resolution cases for two reasons: (1) to ensure that you don't duplicate your work (and credit) for a repeated error allegation; and (2) to keep the examiners and auditors happy.

Your documentation certainly doesn't need to be as complete as you would have for a case that takes several days to research. You could boil down the essential information to a few items. But I suggest you record these events.
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#106381 - 08/14/03 07:15 PM Re: Reg E-Immediate Resolution
Anonymous
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Thanks! I completely agree but wanted another opinion. Now that another party agrees with me, maybe they'll "get it".

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#106382 - 08/14/03 08:08 PM Re: Reg E-Immediate Resolution
John Burnett Offline
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Caveat, Anon. My opinions often do not carry as much weight as I do.
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#106383 - 08/14/03 08:17 PM Re: Reg E-Immediate Resolution
Andy_Z Offline
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Reg. E's OSC at 11(c)4 provides that with automatic payment the time-lines don't matter, but other requirements in .11 will, which include written explanations and those pain in the asset things.
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#106384 - 08/14/03 08:17 PM Re: Reg E-Immediate Resolution
Anonymous
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MY Opinion:

You can give the customer immediate credit but you still need to prepare the paperwork. The customer still needs to receive the notification letter telling them that the error was resolved in their favor. Also, I would log the error.

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#106385 - 08/15/03 01:17 PM Re: Reg E-Immediate Resolution
tuma Offline
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Speaking of the pain things; .11 allows the bank to require a written statement from the acct holder. If the acct holder fails to give one, will that give the bank an out on providing a "written" notice of resolution?

Also, there is a fine line between an acct inquiry and notice that an error has occured, especially if made in person:
1) "My direct deposit isn't posted yet, any idea why?"
2) "My direct deposit isn't posted yet, why?"
3) "My direct deposit isn't posted yet, my employer informs me that it was send 3 days ago; why?"

Inquiries and complaints made in person can get into that gray area.

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#106386 - 08/15/03 01:35 PM Re: Reg E-Immediate Resolution
John Burnett Offline
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Quote:

Also, there is a fine line between an acct inquiry and notice that an error has occured, especially if made in person:
1) "My direct deposit isn't posted yet, any idea why?"
2) "My direct deposit isn't posted yet, why?"
3) "My direct deposit isn't posted yet, my employer informs me that it was send 3 days ago; why?"

Inquiries and complaints made in person can get into that gray area.




A great illustration of why it's important that front line people be trained in error resolution procedures (certainly about how to recognize the need), even if they're not involved in the research and follow-up.

Comment on the suggestion above that even these "instant service" adjustments need to be recorded: Remember that your examiner will almost certainly take an "if it isn't documented, it didn't happen" approach.
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#106387 - 08/15/03 02:41 PM Re: Reg E-Immediate Resolution
Andy_Z Offline
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Quote:

Speaking of the pain things; .11 allows the bank to require a written statement from the acct holder. If the acct holder fails to give one, will that give the bank an out on providing a "written" notice of resolution?



It only effects provisional credit. The rest is still on you.

We never did it, but excessive claims is one reason I believe adding a fee for claims would not be a bad thing. They can't be excessive and they shouldn't be imposed on valid claims. But it does help defray the costs of denied claims, if these are a problem to you. My biggest worry would be in the waivers as I believe more would be waived than not. That is a reason I never pushed adding this to the list of fees.
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My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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