I thought I read in Reg E that a consumer could not benefit i.e. be paid twice from a reg e claim. We have an instance where another bank will make the client whole for the error and we have already issued pc for the transactions in the first 60 days. We can reverse pc when we are informed that she has been made whole by other bank, but, am i missing the section in the regulation?

You don't reverse the pc. You reverse the duplicate transaction as you are entitled to that recovery. As a courtesy, I would send them a letter explaining your action.

These were autodrafts for a loan payment to another bank. We can't reverse the ones we provided PC for as they were over a year ago. The bank that drafted her account in error is willing to provide her with full restitution so she would have the money from that bank and our PC.

As Randy stated, you don't reverse the provisional credit. You reverse the "duplicate credit" when the bank sends the funds to the account. This is considered "Unjust enrichment" and the Uniform Commercial Code will entitle you to recoup the funds from the customer.

Can you provide the UCC reference? Thanks

I think this is the correct section:
U.C.C. - ARTICLE 4 - BANK DEPOSITS AND COLLECTIONS
§ 4-407. PAYOR BANK'S RIGHT TO SUBROGATION ON IMPROPER PAYMENT.

If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss to the bank by reason of its payment of the item, the payor bank is subrogated to the rights

(1) of any holder in due course on the item against the drawer or maker;

(2) of the payee or any other holder of the item against the drawer or maker either on the item or under the transaction out of which the item arose; and

(3) of the drawer or maker against the payee or any other holder of the item with respect to the transaction out of which the item arose.