If a customer files a dispute on ATM withdrawals and states her daughter has authority to use the card as well as confirmed that the daughter has possession of the card most of the time can we hold the customer liable under Reg E 1005.2(m)(2)since we have confirmed that the daughter’s boyfriend performed the transactions?

No. If Momma gave Daughter the OK to use the card, that authority can't be transferred by Daughter to Boyfriend. If Daughter and Boyfriend are trying to game the system to steal from the bank, the bank can go after both of them with federal charges, but Momma is entitled to recover.

Cancel the card and only reissue it if you think Momma will refrain from "sharing" it with her daughter.

Hi! I have a followup question on Reg E disputes and sharing information with police.

In reimbursing the customer for a fraudulent transaction such as a stolen card, we become the victim and can file a police report to attempt to recoup our losses. If we choose to do so, would providing customer information to the police as part of the report (to the limited extent we would even need to do so - and I admit I'm not sure specifically what would be required) be a permissible exception under RFP? I'm reading the following exception as though it would apply:

Submitted by financial institutions to any court or agency when perfecting a security interest, proving a claim in bankruptcy, or collecting a debt for itself or a fiduciary

Any feedback on that? Our old Agreement to Prosecute form (which we don't require as part of our error resolution procedures, but on which we try to obtain a signature when we can) has a section requesting customer authorization for release of information but I'm not sure we need it.

Thanks!

If the bank is the victim, a bank can provide whatever it feels is pertinent information to law enforcement.

Right to Financial Privacy applies to requests for information from the Federal government and I doubt that any State law limits the information you can provide law enforcement when you are a victim of a crime.

Oops, forgot to check the applicability of that reg to this situation. Okay, thanks!