Customer reported an unauthorized debit card transaction. The transaction caused money to be pulled from his line of credit as his checking did not have enough funds. Are we required to reimburse the interest on the money that was transferred out of the loc?

If the customer is a consumer, yes. Regulation E requires that you credit back any fees and adjust any interest to make the consumer whole; i.e., as if the unauthorized transaction didn't happen.

I always say: "Make it like it didn't happen."

Ditto the above. My test is, if this was your account or your mom's, what do you think should happen?

I just wanted to say thank you for asking this... it never crossed anyone's mind to do a check for dynamic transfers during the dispute process. I'm having our card department update all procedures right now to include checking interest for HELOCs, credit cards, and below balance fees charged on linked savings and money market accounts.

Your responsibility ends at your doors, however, If a domino effect caused the customer to incur fees elsewhere, you aren't required to reimburse him for those costs:

• Fees for overdrafts or returned deposited checks at other institutions
• Merchant bounced-check fees

Thanks everyone!!