Skip to content
BOL Conferences
Thread Options
#1815517 - 05/17/13 06:48 PM Reg E-ATM withdrawal dispute
K423D Offline
New Poster
Joined: Apr 2012
Posts: 22
Customer contacted us concerning two ATM withdrawals, both of which she didn't recognize. At first, she wanted us to pull film and tell her who completed the withdrawals, then stated she wanted to dispute the charges. She said the same thing occurred in March, and at the time she did not inform us, because she believed it was her son(s), and she confronted him, and thought the problem was finished.
Another withdrawal occurred in April, and the final two May 3 and May 9. We asked her what vehicles her son(s)drive and we proceeded to pull film, and discovered both debits were completed by her son(s). She acknowleged that she confronted them again, and they basically confessed stating they knew where her Debit card was kept and her pin and did it when she was asleep. She states she did not give them her pin, but they could have seen it when she withdrew money from the ATM at other times. She then stated she was considering pressing charges against her son(s) and wanted us to pull film from the previous transactions. Not disputing those transactions. We indicated there was charge for research and she changed her mind.
We believe she is responsible for all transactions because she did not inform us of the prior transactions she knew her son(s) completed, because if she had, we could have stopped the transactions in April and May from occurring, correct?

Return to Top
eBanking / Technology
#1815540 - 05/17/13 07:24 PM Re: Reg E-ATM withdrawal dispute K423D
BrianC Online
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,694
Illinois
It sounds like the customer is trying to pick and choose which "unauthorized" charges she would like to be reimbursed for. It doesn't work this way. From the perspective of Reg E, you need to know when she first discovered an unauthorized electronic funds transfer. (The first charges were in March, but when did she see them.)

The customer would be liable for $50.00 of the charges that occur up to two business days after see learned of the theft of her card. She would then be liable for up to $500.00 for charges that occured between day 2 and day 60 from when she discovered the theft. If any charges occured more than 60 days after you delivered the March statement on which the first unauthorized charge appeared, she would have unlimited liability for those. Just because the customer did not tell you right away does not mean that she is autoatically liable for the full amount. You cannot set aside the liability schedule of Reg E 1005.6

For help with the math check out AndyZ's Reg E Liability Calculator. You can't require that she file a police report, but if the bank sustains a loss, as the financial victim you have the right to file a report and seek reimbusrement from junior directly.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

Return to Top
#1815557 - 05/17/13 07:47 PM Re: Reg E-ATM withdrawal dispute K423D
K423D Offline
New Poster
Joined: Apr 2012
Posts: 22
We did not require any police reports.
And she learned of the loss in March. Her statement was mailed the 30th of March, but I believe she knew the loss occurred prior to that date (due to online banking) and because she confronted her sons in March.
She did not inform us until 5/13 of the 5/3 and 5/10 transactions (via online banking). Nor of the april transaction until may 13.
According to the calculator and the dates, she's liable for the $60 shes disputing in may. She's not really disputed April's transaction, and she's not exactly sure as to which transactions in march were hers and which she may not have actually completed.
She said at the time in March she confronted her children and thought the issue taken care of so she did not tell us about the March transactions and April transaction until Monday, the 13th of May.

Return to Top
#1815609 - 05/17/13 08:45 PM Re: Reg E-ATM withdrawal dispute K423D
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,748
On the Net
Nail down "when did you realize of the loss or theft" and "which transactions are unauthorized." I'm getting the impression that she lets her kids use her card and they pay her back. And if they don't she'll get it from you.

Once you investigate the claim that's it, final is final. If she wants this one now, and that one later you'll be investigating forever. So get it all done so she can't keep coming back.

Also, when you take the loss, if your bank reports the claims to the police, ensure she knows this. If it is her kids (or friends) she needs to be aware that the bank isn't just handing out money. Then decide, do you want her to have your debit card? It isn't a right and if you eat a loss, how long does it take the account to be profitable again? There could be another easy claim next month.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top
#1815659 - 05/20/13 06:39 AM Re: Reg E-ATM withdrawal dispute K423D
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
I would not beat around the bush with her. Just tell her that she has two options. 1) Work it out with her son or 2) you will give her the money, file a police report and sue the son immediately in small claims court. Oh, and close her accounts.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1820806 - 06/05/13 09:26 PM Re: Reg E-ATM withdrawal dispute K423D
St Louis Jeff Offline
100 Club
Joined: Jun 2007
Posts: 105
Sounds like the kind of claims we get. Flip flopping and unwillingness to get specific. We pin them down and use Reg E to our advantage to get specifics: What transactions and what dates. We had a recent customer who said "all ATM transactions OTHER than the ATM at our main bank". No dates, no dollar amounts. We're making them tell us exactly what transactions.
Reg E is consumer-friendly enough as it is without allowing customers to just make us embark on an endless investigation.
-----------------------------------
This is just my own opinion, not that of my employer.
Last edited by St Louis Jeff; 06/05/13 09:27 PM.
Return to Top

Moderator:  Andy_Z