Would this be a reg E error where a claim should be open? Due to a system issue a scheduled bill payment was not sent by the bank on the day it's scheduled, but was sent the next day. As a result the customer's payment was late and they want the late fee back because it was a bank error. Do we open a claim for the amount of the late fee?

The Reg defines 7 errors:

The term “error” means:

(i) An unauthorized electronic fund transfer;

(ii) An incorrect electronic fund transfer to or from the consumer's account;

(iii) The omission of an electronic fund transfer from a periodic statement;

(iv) A computational or bookkeeping error made by the financial institution relating to an electronic fund transfer;

(v) The consumer's receipt of an incorrect amount of money from an electronic terminal;

(vi) An electronic fund transfer not identified in accordance with § 1005.9 or § 1005.10(a); or

(vii) The consumer's request for documentation required by § 1005.9 or § 1005.10(a) or for additional information or clarification concerning an electronic fund transfer, including a request the consumer makes to determine whether an error exists under paragraphs (a)(1)(i) through (vi) of this section.

You might interpret this to say it is an improper lEFT from a consumers account. But the transfer was then made. From the banks records the consumer was not harmed. The next part of the question is when was the payment due, and when was it assumed that it would be paid? Was it due on the first and late after the 10th so the consumer had it pay on day 7 in hopes it would arrive in the nick of time?

At the end of the day I wouldn't say it was a Reg E error as funds "to or from" in my mind is money that shouldn't have have gone to or from, not a one day timing for bill pay. So ethically what does the bank want to do to appease the consumer? A) Tough luck. B) We apologize for the error, we'll reimburse you. C) We apologize, but you should have allowed more time, read your agreement.