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#2017687 - 06/02/15 06:20 PM Reg E Disputes - Hot Card
SMQ, CRCM Offline
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SMQ, CRCM
Joined: Apr 2001
Posts: 4,828
Between the lines
Can a bank require that the card be "hot carded" before they will process the claim? Then if the customer refuses to "hot card", the cust withdraws the dispute.
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#2017706 - 06/02/15 06:55 PM Re: Reg E Disputes - Hot Card SMQ, CRCM
Adam F Offline
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Adam F
Joined: Apr 2013
Posts: 420
VA
It is my understanding that as long as you have enough information to satisfy 1005.11(b)(1) that your investigation must begin immediately.

The customer's reason for not wanting the card to be hot carded would be something to consider in the investigation, but not something that would delay the investigation.

Also, if the customer has the attitude that they don't care since the bank will cover any unauthorized transactions anyway, then the account may need to be closed before the bank loses more money.
Last edited by NSFW; 06/02/15 06:58 PM. Reason: Added last comment
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#2017857 - 06/03/15 12:05 PM Re: Reg E Disputes - Hot Card SMQ, CRCM
P*Q Offline

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Somewhere
We would hot card regardless, customer doesn't have a choice if fraud is involved.

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#2019081 - 06/08/15 06:18 PM Re: Reg E Disputes - Hot Card SMQ, CRCM
MTW75 Offline
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Joined: Apr 2007
Posts: 64
Lexington, Kentucky
I'd restrict the card immediately anytime you receive such a claim. The bank certainly has that right. And if the customer raised a fuss over that practice I would close the account entirely.
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