Hi,

I have a question regarding 11(e) Reassertion of Error--

After all other steps in error resolution have been followed, if an account holder reasserts the error after receiving evidence and we are still within 60 days of the transactions, is the clock for error resolution still ticking from the original notification or error, or does the error resolution clock "reset" as of when the reassertion was made?

I'm not seeing this spelled out in the reg or in the commentary.

Thank you--

If you did all the steps correctly, denied the claim, provided the proper notice and provided the copies of information on which you based your decision, you don't need to accept the customer's reassertion.

If the original error claim was simply a request for additional information to allow the customer to better understand the transaction, and you stepped through all the hoops correctly, providing the requested information, the consumer can then assert an error based on the information provided, if he does so within 60 days of your providing that information. At this point, you could be 120 or more days after the statement reflecting the transaction under scrutiny.

Thank you John--let me run a more specific scenario past you--

We had a claim we denied on basis of compelling evidence received back form the merchant in a POS debit card purchase. Long story short, the transaction was for a nutritional supplement not returned after a trial period expired. The merchant (with uncanny quickness, I might add) represented the transaction with evidence of computer IP address, shipping address, and tracking number. It all checked out and matched our customer's information. Even the IP (he is an internet banking user).

So the claim was denied, all the rules were followed with respect to notification, removal of provisional credit and providing evidence. Two weeks later our customer states they finally reviewed everything and feel it could have been a household member and asserts the transaction was still made without authorization, despite all of the evidence.

My read on this scenario is we do not have to accept assertion because we denied the claim and followed all the rules. I'm just wondering if the customer has traction to re-assert based on the evidence received... I mean, I *guess* it could have been a household member.

Of course, arguably I could have the customer put that assertion in writing and attempt arbitration with the card network, but if we lost the arbitration any credit back to the customer would be a loss. I'm wondering if there is anything in the reg that compels us to credit within a certain timeframe of reasserting an error (or at all)?

Or has this claim fallen outside of the protection of Reg E once I denied the claim and followed all the rules? (Making credit to the customer simply a business decision).

Thanks for your time!

You investigated according to Reg E. You reached a conclusion based on the evidence provided. Once you have done this, you have satisfied your obligations under Reg E. If you decide that you want to continue the claim under VISA/MasterCard that choice is up to you. There is no regulatory requirements at this point.

Thanks so much for your time!