Our member states he made a withdrawal from an ATM machine and as he was about to get into his car he was robbed. Does Reg E cover the members claim?
I have a customer that pays his utility bill by direct debit. He has informed us that he just noticed on his banking (checking) statement that 2 ACH debits are debited from his account monthly by my company, and have been for the past 7 years. He never noticed the second debit because he keeps a large balance in his checking account. Upon review we found that the second monthly debit was a direct debit charge from a different consumer. He claims this is fraud and the debits were unauthorized for 7 years. They want to recover all of the unauthorized funds stating there is no time limit and we should follow the States statue limitations of seven years. Is this correct? I can't find any time limits in any of the NACHA rules.
When a customer is negligent with the loss of their card, as in waiting 10 days to report, what is the liability the customer faces according to the Visa rules? I know Reg E is 2 business days @ 50 and up to 500.
We have a fraud watch service thru our processor (who also may initiate chargebacks on the customer's behalf.) They contact customers to confirm or deny fraud. Customers are told to go into the bank to dispute these fraudulent transactions. When the customer does not come in to fill out a dispute form, what is our responsibility as far as Reg E is concerned.
Visa debit card dispute. A customer just noticed transactions that posted to their account. The customer is disputing three different companies. Do we figure the time frame each merchant? Or would the liability be on consumer because they did not notify us to block their account on the first transaction?
Does Mastercard require a notarized affidavit for debit card fraud and if the answer is no, when did it go away ?
Does Visa Provisional credit cover customer disputes? For a service was not performed as expected? That are not fraudulent?
I was contacted by my customer "Charlie Customer" and he asked to have two stop payments placed against two personal checks each for $5,000.00. The following day a now previous employee cashed these two checks for Frank Fraud, the payee. These two checks were supposed to be earnest money for a upcoming home sale that fell through due to Frank Fraud and no contract was signed since they operated under a gentleman's agreement so Charlie Customer did not receive any services or products for these two checks. We made contact with Frank Fraud who of course refused to bring the funds back to the bank. Question: Does the bank have any legal recourse to recover these funds? It seems the only person that would be able to file a suit would be Charlie Customer; however, since he placed the stop payment, the funds came from the bank instead of Charlie Customer's account and he now has no motivation to file suit since he isn't out any money. We referred to the UCC code for our state however; like most states it covers the customer's damages and doesn't seem to give any guidance to the financial institution.
We have a client that is reporting in April that checks posted to his account in Jan are due to fraud and that they were stolen during a home invasion. He is requesting to be made whole for the transactions. Do we as the paying bank have to comply? The bank of first deposit has refused our return claiming it was past our midnight deadline.
If we intend to close a checking account due to suspicious activity (SAR has been filed), how many days notice must we give the customer when they have direct deposit to the account?