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#1302442 - 12/10/09 02:25 PM Reg E Error Resolution
FSLICBanker Offline
Member
Joined: Apr 2008
Posts: 99
North Carolina
Confused between 205.11 and 205.6. Disputes transaction for $100 unauthorized transaction with debit card. Trans date 6/1/09 with statement ending date of 6/15/09. Customer disputes charge on 9/15/09 which is outside 60 day window following statement.

Scenario 1 - card was not lost or stolen. Simply a duplicate charge by a merchant. I assume $0 due back to the consumer

Scenario 2 - Consumer alleges they didn't look at statement until 9/15/09 and didn't realize card was lost or stolen. Tehnically they appear to be notifying the bank within 2 business days of learning of loss. In this situation could we only hold the consumer liable for the first $50 since they reported within 2 days of learning of loss of theft but well outside the 60 day window?

Bottom line - if consumer alleged unauthoried use on a debit card but is outside the 60 day window, are there scenarios where they will be reimbursed a portion of the charges?

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General Discussion
#1302569 - 12/10/09 03:30 PM Re: Reg E Error Resolution FSLICBanker
AuditorK Offline
Platinum Poster
Joined: Feb 2003
Posts: 962
PA
205.6 deals with liability that can be imposed on the consumer if the error involved an access device - depending on when the consumer realized the card was lost/stolen and when the bank was notified.

205.11 deals with the investigation process (timing, provisional credit) if the consumer notifies the bank within 60 days after the statement showing the first error.

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#1303158 - 12/10/09 09:26 PM Re: Reg E Error Resolution AuditorK
FSLICBanker Offline
Member
Joined: Apr 2008
Posts: 99
North Carolina
Another scenario. Customer signs up for trial service of a product thru a merchant and charge is $100 per month. Customer cancels within 15 day trial period. Merchant charges $100 on 7/1, 8/1, 9/1 and 10/1. Statement cycle date is 15th of each month. Customer disputes on 10/1. The 7/1 $100 charge is more than 60 days after the statement which included the charge and is a recurring payment. Are we required to investigate and if so, can we withhold the first $50 since an access device was used? I realize the timing and disclosure provisions of 205.11 do not apply to the 7/1 disputed charge.

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#1304059 - 12/11/09 09:02 PM Re: Reg E Error Resolution FSLICBanker
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
You are required to investigate. First error was charged on 7/1. First statement showing first error is 7/15. Add 60 days to this (roughly 9/15) and that's the window of time you must reimburse. IOW, the debits on 10/1 are not your responsibility.
_________________________
David Dickinson
http://www.bankerscompliance.com

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