We have a systematic challenge whereby our system processes a prov credit letter on a dispute and prints the same night, however the posting of the actual prov credit doesn't occur until the next day. So, they're typically one day apart- questioning if we're not making the customer whole by not doing the same day? In general, everything is completed before the 10th business day.

We are also experiencing somewhat of the same issue for the crediting of fees- that occurs the same day; the credit for fees generally posts one day before the system processes the prov credit. Our regulator has indicated that at the time we give a refund of fees, we've determined an error occured, and thus we should be crediting the prov credit the same day. Anyone see this differently? If all this is done before the 10th business day, are we ok?

If you haven't determined whether an error occurred and you send the letter and prov cr within ten business days of receiving the error notice, you should be ok. I'm not sure where he is coming from.

That was my opinion as well.
Thanks!

Anyone else agree/disagree?

Anyone else agree/disagree?

I disagree with the regulator's interpretation. Reg. E has a 1 business-day window for crediting an account when you determine an error exists. Crediting the fees today and the disputed amount tomorrow still falls within that 1 business-day window. Reg. E does not say that any and all credits related to a dispute must be issued to the account on the same day.

205.11(c)(1): The institution shall correct the error within one business day after determining that an error occurred.

Your notification letter is another matter. If the letter states you are issuing credit today (and the letter reflects today's date) then all credits should appear today since it could be interpreted as being misleading. Since you know credit won't appear until tomorrow, I'd suggest changing the verbiage of the letter to advise something like "all related credits will post to your account within one business day." Also you have 3 business days to issue a notification so you could wait until the next day when you know all credits are on the account and then send the letter. Not sure if your system would allow these options but you would still be compliant if you did it either way

I'd also caution that you be stringent with observing the 10-day rule and not think of it as a grace period. You have up to 10 business days determine if the dispute is valid but once you make that determination then you have only 1 business day to issue the credit and only 3 business days to send notification. For example, you determine on Monday (Day 1) that a dispute made that morning is valid then issue a letter and fee adjustment on Friday (Day 5) and then credit the dispute amount on the next Monday (Day 8). Here you would be out of compliance twice. The credit(s) must be given no later than Tuesday (1 business day after determining the dispute is valid) and the letter sent no later than Thursday (3 business days after the determination). This is assuming there is no holiday in between.