I am currently doing a review of Reg E, and have a question as it relates to Error Resolution on unauthorized ATM/Debit Card claims, and forms. First, is it accurate to refer to these such claims as "forgeries"? The bank is currently using "Forgery Claim Forms" instead of "Fraudlent Activity Claim" forms...does it matter? Second, I have read in several threads that a bank cannot refuse to investigate a claim UNLESS they have been provided a police report. While doing my review, I found on the "Forgery Claim Checklist" used by the ATM dept. a statement that says: As customer if a police report has been filed. If one has not, explain to the customer that we will require one before we can begin our investigation". I need some guidance on if we CAN/CANNOT do this, as well if the terminology we are using (forgery) is correct, or if it matters.

What you call your form is not relevant. For Reg E purposes we would be talking about an "unauthorized" or "incorrect" electronic funds transfers as defined in Section 205.11 of Reg E.

This section also indicates that all a consumer need do to report an error is supply enough information to

(ii) Enables the institution to identify the consumer's name and account number; and

(iii) Indicates why the consumer believes an error exists and includes to the extent possible the type, date, and amount of the error...

Once the customer has provided the above information, you are required to investigate whether or not the customer supplies a police report. You are permitted to ask for one, but cannot base your investigation on whether or not a consumer complies with your request.

FWIW, it sounds like the forms/terms you are using may have been borrowed from your check fraud claims area where we do deal with forged signatures/endorsements or fraudulently created checks and you can be a little more liberal in what you require of your customer.

In an FDIC presentation on UDAP recently they indicated they were considering UDAP penalties against a bank that required police reports for Reg E claims.