I have poured over the notification requirments of Reg E, and wanted to ask if I understand this correctly. I am only required to send a WRITTEN notice on a claim denial, all other notices may be oral. Thanks all.

Almost correct. Written notice if the FI determines that there was no error or that there was an error that's different from the error claimed.

Is it enough that our personnel responsible for handling error resolutions state they call every customer and notify them that an error occurred and are crediting their account or should there be documentation that this was done?

11(c) Time Limits and Extent of Investigation

1. Notice to consumer. Unless otherwise indicated in this section, the financial institution may provide the required notices to the consumer either orally or in writing.

The only written notification requirement will be found in 1005.11(d)(1).

Now whether relying on oral notifications it is a good idea or not is another question.

Randy's right about the technical requirements. As a previous examiner and a consultant for 23 years, Reg E is one of the toughest areas to review. Many banks don't keep sufficient documentation to prove they complied - and you aren't required to do so. However, if the documentation isn't there, the auditor/examiner then is forced to start interviewing and create scenarios to test your knowledge. This typically is not favorable for the bank.

I recommend you have template letters for the various scenarios you will encounter (no error occurred, we agree there is an error, here's your provisional credit, the provisional credit is final). If you do, you'll get less questions and likely less violations as a result.

In my Reg E webinars - hey one is coming up in a couple weeks - I do provide you with letter templates and the workflow charts and the knowledge on how to use them.

http://www.calendarwiz.com/calendars/pop...ingconnect&