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#1632418 - 11/25/11 07:11 PM Wife claiming Reg E "Unauthorized" 10 months later
CARM9 Offline
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We have a reg E claim from a woman stating she moved $30k from a joint account with her spouse to her own individual acct. Then her spouse, through online banking transferred the money from her sole acct to the jt acct and the fr the jt acct to his sole account. This happened in Jan 2011. Now she is filing a claim of unauthorized and has stated she knew about it the day it happened, contacted the spouse who stated he was going to pay her back, didn't pay her back and 10 months later is asserting a claim of unauthorized. The spouse knew online banking pswds. We do not have to provide pc since she is outside the 60 timeframe, and are now suspicious about whether or not this is a true claim or if they are in collusion. If the client had notified the bank on day one the bank could have frozen the funds. Can we deny based on what we have learned in the investigation and her admission of knowing on day one?

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#1632441 - 11/25/11 09:13 PM Re: Wife claiming Reg E "Unauthorized" 10 months later CARM9
complylady Offline
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This is a good question. I would require her to file a police report and provide a copy. Perhaps if they both realize that he is going to be chanrged with taking $30,000 they may have second thoughts and resolve the issue. Also, discuss with the bank's attorney.

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#1632450 - 11/25/11 09:45 PM Re: Wife claiming Reg E "Unauthorized" 10 months later complylady
BrianC Offline
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Illinois
Quote:
I would require her to file a police report and provide a copy.


I would stongly recommend against this "requirement" as MarkleBank in Markle IN was recently handed an $82,500 CMP for requiring police reports in response to Reg E claims.

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My investigation would focus much more on how the husband "knew" the ID and password to the wife's individual account. As soon as she admits to sharing it with him you can invoke the staff interpretations to Reg E:

2. Authority. If a consumer furnishes an access device and grants authority to make transfers to a person (such as a family member or co-worker) who exceeds the authority given, the consumer is fully liable for the transfers unless the consumer has notified the financial institution that transfers by that person are no longer authorized.

Another possible avenue to explore is when did the wife learn of the theft of the access device (i.e. the ID and password) if she claims to have not given it willingly to the husband. If she had known for more than 60 days prior to the 30k transfer that he had access and failed to notify the bank, you can invoke the unlimited liability tier under 205.6.

As the original poster correctly stated, we don't have to worry about provisional credit or completing the investigation in a timely fashion so take your time to get to the bottom of this one. Given the suspicious nature and large dollar amount of the claim, it also wouldn't hurt to give the bank's attorney a call before paying out on this claim.
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#1632615 - 11/28/11 05:20 PM Re: Wife claiming Reg E "Unauthorized" 10 months later BrianC
Andy_Z Online
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This is a very good claim for discussion purposes. I'm not sure how it will shake out. The reality in my mind is that he accessed her IB account. He moved funds to a joint account. Technically this is still her property. He hasn't stolen from her. Then, being a joint account he moved the funds. She was aware almost immediately but made no notice. At that point he and she made an agreement for repayment. Now it is a loan from her to him. Since it hasn't been repaid she fell to plan B and wants $29,950 from the bank.

Yep. I'd make that call to my attorney just before I send the denial notice for her claim. Then I'd see if she takes it to a higher level.
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