Filing the Correct Report for Mysterious Debit
by John Burnett, BOL Guru Guru BIOS
Question: I have a question in regard to Reg E. We have a customer that comes into the bank and tells us that there is a debit coming out of their account, and they aren't aware of what it is. There is no number that shows who to call, I mean its just there. The customer tells us that she/he has their visa card and checks in hand and that nothing has been lost or stolen. The bank at this point would file an unauthorized transaction report, is that correct? Would we also need to have are customer file a Police Report?
Answer: If the customer inquires to learn more about the transactions, that inquiry constitutes an error resolution claim under 12 CFR 205.11. You complete your responsibility under that claim by providing as much information as you can about the transfers.
The consumer then has 60 days to file a claim of unauthorized transfer, if that is appropriate, and you pursue that claim as a new error resolution claim. If you believe that the police should be involved, you may encourage (but not required) the customer to report the fraudulent transfer to the police. If the customer does not report it to the police, you may do so later if you end up paying the claim.
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