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#1187593 - 05/20/09 06:29 PM Credit Union and Reg E
QueenBB Offline
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Joined: Jan 2006
Posts: 190
TX
Isn't a credit union subject to Reg E? Consumer has $20 fraudulently debited from account through debit card transaction in foreign country (wasn't there, didn't do it, didn't authorize it). CU says she must have police report due to their MC processor's requirement and small amount. Can they really require a police report? If she doesn't get one, they have indicated they will not return funds. I believe that to be a violation of Reg E. Because of foreign transaction, can take up to 90 days to investigate; but must give provisional credit within 20 days. Am I correct?

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#1187605 - 05/20/09 06:41 PM Re: Credit Union and Reg E QueenBB
ktac MITCH Offline
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ktac MITCH
Joined: May 2005
Posts: 1,813
Giant side of TX
Originally Posted By: QueenBB
Isn't a credit union subject to Reg E? ... CU says she must have police report due to their MC processor's requirement and small amount. Can they really require a police report? ... I believe that to be a violation of Reg E...

You are correct
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#1187668 - 05/20/09 07:19 PM Re: Credit Union and Reg E ktac MITCH
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Yes, the credit union is subject to Regulation E, and the CU staffer clearly is confusing the card association and/or processor rules with Reg E provisions.

To be fair to our friends at credit unions, I have to say that there are still a lot of bankers out there that think that a cardholder can be required to file a police report, or sign a WSUPP (for ACH claims) or complete a written error claim before the investigation can move forward. Wrong, Wrong and Wrong.

The card issuer's ability or inability to recover the funds does not affect the cardholder's right to the protections of Reg. E.
Last edited by John Burnett; 05/20/09 07:19 PM.
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#1188913 - 05/21/09 10:32 PM Re: Credit Union and Reg E John Burnett
Andy_Z Offline
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Andy_Z
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On the Net
Tell the CU to buy our Reg E webinar CD http://www.bankersonline.com/bankerstore...products_id=361 .
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