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#1644142 - 12/29/11 03:41 PM Written notice of final credit or denial
TruthNTime Offline
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TruthNTime
Joined: Dec 2011
Posts: 84
Texas
I have been tasked with handling charge back check items, fraud monitoring, debit card claims, along with other tasks and have tried to read REG E at tevery break. I have not read anything on whether or not I am required to send a notice of final credit or denial after investigations and crediting occur. Must I send a letter for final credits, provisional credits, or denials? Thanks for the help.
Robert, Texas.
Last edited by TruthNTime; 12/29/11 03:42 PM.
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Robert R.
Fraud Specialist
Beaumont, TX

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eBanking / Technology
#1644176 - 12/29/11 04:15 PM Re: Written notice of final credit or denial [Re: TruthNTime]
TruthNTime Offline
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TruthNTime
Joined: Dec 2011
Posts: 84
Texas
To give more information on why I am asking this question, the institution I work for does not have a policy on sending letters for provisional/final credits. As far as denials go I can't say we ever denied a fee or transaction that was claimed before I moved into this new position. I am coming from the IT department but have an extensive background in Insurance Adjusting/Estimating and Investigations. I have allready corrected many REG E shortcomings that were obvious to me, but there are some things I have not yet had the oppurtunity to study. The accounting department has shouldered these tasks in the past but there were never any investigations into claims. I investigate every claim that is made and am denying those that are blatant abuses and outright lies. In many cases we provide a final credit on day 2 after the written/oral notice is received and the customer is told they are being credited. I do see that we must provide notice within three days of our decision, does this notice need to be in writing.
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Robert R.
Fraud Specialist
Beaumont, TX

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#1644581 - 12/30/11 03:00 AM Re: Written notice of final credit or denial [Re: TruthNTime]
BrianC Online
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BrianC
Joined: Nov 2004
Posts: 5,356
Illinois
You can find all of your notification requirements in Reg E 205.11

First, your are required to notify your customer of provisional credit.

Informs the consumer, within two business days after the provisional crediting, of the amount and date of the provisional crediting and gives the consumer full use of the funds during the investigation

Note that this notification need not be in writing. However, from an audit/compliance standpoint it is important that you be able to document customer notification. I find that having dated letter is the easiest way to do this, but you have the option of making an oral notification and documenting the date/time/method, in your dispute file. One you reach a final decision, again there is a notification requirement.

Reports the results to the consumer within three business days after completing its investigation (including, if applicable, notice that a provisional credit has been made final).

If you are finalizing the provisional credit or issuing final credit, again this notificaiton can be oral provided that you document your compliance. If you are denying the claim and/or revoking the provisional credit, then the notificaiton must be in writing.

(d) Procedures if financial institution determines no error or different error occurred. In addition to following the procedures specified in paragraph (c) of this section, the financial institution shall follow the procedures set forth in this paragraph (d) if it determines that no error occurred or that an error occurred in a manner or amount different from that described by the consumer:

(1) Written explanation. The institution's report of the results of its investigation shall include a written explanation of the institution's findings and shall note the consumer's right to request the documents that the institution relied on in making its determination. Upon request, the institution shall promptly provide copies of the documents.

(2) Debiting provisional credit. Upon debiting a provisionally credited amount, the financial institution shall:

(i) Notify the consumer of the date and amount of the debiting;

(ii) Notify the consumer that the institution will honor checks, drafts, or similar instruments payable to third parties and preauthorized transfers from the consumer's account (without charge to the consumer as a result of an overdraft) for five business days after the notification. The institution shall honor items as specified in the notice, but need honor only items that it would have paid if the provisionally credited funds had not been debited.


I hope this helps clarify the regulatory requirements.
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