Thread Options
|
#123061 - 10/16/03 07:52 PM
Re: Reg E and Debit disputes
|
Diamond Poster
Joined: Feb 2003
Posts: 2,362
Colorado
|
Actually, Reg. E addresses this specifically. The 10 day provisional credit time period begins when you are notified, whether by phone or any other method. However, if you require the customer to confirm in writing, you may delay making the provisional credit until you get the written statement, even if it goes beyond the 10 day time period.
205.11 Procedures for resolving errors. (c) Time limits and extent of investigation--(1) Ten-day period. A financial institution shall investigate promptly and, except as otherwise provided in this paragraph (c), shall determine whether an error occurred within 10 business days of receiving a notice of error. This institution shall report the results to the consumer within three business days after completing its investigation. The institution shall correct the error within one business day after determining that an error occurred. (2) Forty-five day period. If the financial institution is unable to complete its investigation within 10 business days, the institution may take up to 45 days from receipt of a notice of error to investigate and determine whether an error occurred, provided the institution does the following: (i) Provisionally credits the consumer's account in the amount of the alleged error (including interest where applicable) within 10 business days of receiving the error notice. If the financial institution has a reasonable basis for believing that an unauthorized electronic fund transfer has occurred and the institution has satisfied the requirements of § 205.6(a), the institution may withhold a maximum of $50 from the amount credited. An institution need not provisionally credit the consumer's account if: (A) The institution requires but does not receive written confirmation within 10 business days of an oral notice of error;
_________________________
Opinions are mine and not necessarily my employer's.
|
Return to Top
|
|
|
|
#123064 - 10/17/03 09:40 AM
Re: Reg E and Debit disputes
|
10K Club
Joined: Oct 2000
Posts: 27,749
On the Net
|
If this is a true VISA debit card, don't you have a 5 day provisional credit rule if it was through the VISA switch?
If that isn't the case, then the Reg. E rules apply and they have been correctly cited.
_________________________
AndyZ CRCM My opinions are not necessarily my employers. R+R-R=R+R Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell
|
Return to Top
|
|
|
|
#123065 - 10/20/03 05:13 PM
Re: Reg E and Debit disputes
|
Anonymous
Unregistered
|
OK, so if the provisional credit is not given because a written response is not received within 10 days, what if the form is never received and a Chargeback requires written notification in order to process? This assumes the customer has provided the details (lost, stolen, NRI), all transactions and the FI can identify the account number all verbally .
|
Return to Top
|
|
|
|
#123066 - 10/20/03 07:39 PM
Re: Reg E and Debit disputes
|
10K Club
Joined: Oct 2000
Posts: 27,749
On the Net
|
I haven't worked with VISA, but if it falls under the VISA rules, Reg. E is minimized and VISA rules take precedence. There is zero liability in most cases, but VISA or someone familiar with those rules will have to tell you what your contractual requirement is if you do not get enough assistance from the customer.
_________________________
AndyZ CRCM My opinions are not necessarily my employers. R+R-R=R+R Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell
|
Return to Top
|
|
|
|
#123067 - 10/22/03 04:18 PM
Re: Reg E and Debit disputes
|
10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
|
Reg. E only fades behind the Visa rules to the extent the Visa rules are more protective of the consumer. For example, where Reg. E might say the consumer bears the first $50 of a loss due to the timing of his notice to the bank, Visa might step in and say $0 liability.
On the other hand, when Reg. E says the consumer gets protection under §205.11, Visa rules cannot take that away. They can only add more protection, not provide less.
However, if Visa rules require that the consumer provide a written (or emailed) notice of claim before the bank can do a document retrieval request, for example, and the consumer fails to provide the notice in written or emailed form, the bank is really kind of stuck, and cannot proceed. That is where I think the bank is justified in refusing the customer's claim, based on their inability to proceed because of the customer's unwillingness to cooperate.
_________________________
John S. Burnett BankersOnline.com Fighting for Compliance since 1976 Bankers' Threads User #8
|
Return to Top
|
|
|
|
#777016 - 07/17/07 09:04 PM
Re: Reg E and Debit disputes
John Burnett
|
Gold Star
Joined: Jan 2005
Posts: 279
|
Bringing this up from the past...if a customer calls in a dispute via phone, and we require written confirmation within 10 business days, when does that 10 day period start if we mail the customer a WSUPP? If we mail it the same day we receive the oral dispute, does that start the clock, or when we expect the customer to receive it? Or when?
For example, we are open 7 days a week so every day is a business day except holidays.
Oral notification: 7/17/07 Mail WSUPP: 7/17/07
Would it be safe to say that the customer has to return the WSUPP by 7/27/07 in order for us to provide provisional credit? If that is correct and the customer gets us the written notice on 7/27/07, would we have 10 days (5 days if VISA) to give provisional credit from receipt of the confirmation, so it could possibly be 8/6/07 before we give provisional credit???
_________________________
These Pretzels Are Making Me Thirsty!
|
Return to Top
|
|
|
|
#777028 - 07/17/07 09:12 PM
Re: Reg E and Debit disputes
Yada...Yada...Yada...
|
Power Poster
Joined: Nov 2004
Posts: 6,716
Illinois
|
You have 10 business days from the date of initial notification whether it be in writing or verbal. If the customer provides written notification within the required time frame, you must give the provisional credit from the day of the phone call, not 10 days from the date you received the written notification.
In your example, the provisional credit would need to be in the account by 7/27/07. Further you would have 45 days from 7/17/07 to complete your investigation (90 days if foreign or point of sale).
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria! www.tcaregs.com
|
Return to Top
|
|
|
|
#777052 - 07/17/07 09:28 PM
Re: Reg E and Debit disputes
BrianC
|
Gold Star
Joined: Jan 2005
Posts: 279
|
What if it's a VISA debit and we don't get the confirmation until say 7/27/07? There's no way to give credit in 5 days if we get confirmation on the 10th day.
Does the 10 days written confirmation required by us start when we put the WSUPP in the mail?
Last edited by Yada...Yada...Yada...; 07/17/07 09:28 PM.
_________________________
These Pretzels Are Making Me Thirsty!
|
Return to Top
|
|
|
|
#778201 - 07/18/07 09:59 PM
Re: Reg E and Debit disputes
Yada...Yada...Yada...
|
Power Poster
Joined: Nov 2004
Posts: 6,716
Illinois
|
You don't have to meet the VISA 5 day requirement if they don't provide it within the 5 business day timeframe, but you still need to meet the Reg E 10 business day requirement.
Again, it is 10 business days from the date the customer notifies you of an error regardless of when you mail paperwork to the customer.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria! www.tcaregs.com
|
Return to Top
|
|
|
|
|
|