What restrictions does Regulation O place on overdrafts?
How do we know when a cushion is allowed?
A customer was depositing a Not On Us check for $1500 into his checking account for $1200 and was supposed to receive $300 cash back from the transaction. The teller mistakenly keyed $1500 into the cash recycler and handed the cash directly to the customer. This is proven by video surveillance and the reporting tool from the cash recycler, which shows the denominations of the bills he received. The cash back totals $1500, is time stamped for when he is at the teller window and has the teller #. Is this sufficient proof so that the Bank can the bank legally debit his account for $1200? The customer has hung up on bank employees when we have attempted to contact him.
Since Reg E does not apply to businesses, do we have to investigate a fraudulent business debit card transaction?
What recordkeeping is required by Regulation O?