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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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8