Skip to content
Learn More - Click Here!

Thread Options
#133442 - 11/21/03 11:42 PM Non receipt of funds

If a customer does not receive funds from an ATM and waits past sixty days of the mailing of the customers periodic statement to dispute the withdrawals, is an investigation necessary or can we decline the claim since the notice was untimely?

Return to Top
Operations Compliance
#133443 - 11/24/03 02:06 PM Re: Non receipt of funds
RBanker Offline
Power Poster
Joined: Jul 2003
Posts: 2,675
Austin Texas
You could certainly decline their claim based on it being made after the time allowed for disputes under Reg E, but there might be a couple of other considerations, such as customer/community relations. Not knowing the size of your institution or your community, that is something that you would have to take into account.
My comments are absolutely no reflection of, nor influenced by, my employer - take them at your own risk.

Return to Top
#133444 - 11/24/03 04:09 PM Re: Non receipt of funds
GreatBlue Offline
Diamond Poster
Joined: Feb 2003
Posts: 2,362
I'm not sure you can deny the claim. I believe you are not subject to 205.11, error resolution procedures, including time frames for investigation and provisional credit, since the claim was not timely, but I think the customer's liability is still limited by 205.6.
Opinions are mine and not necessarily my employer's.

Return to Top
#133445 - 11/24/03 05:09 PM Re: Non receipt of funds
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,785
Cape Cod
Actually, 205.6 deals only with unauthorized EFTs. Once the 60-day clock in 205.11 has run, I believe that the customer owns the problem.

I do not think that one can classify a failure to dispense (or a short dispense) as unauthorized.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Andy_Z, John Burnett