We have an elderly customer who was recently declared incapacitated. A Guardian was appointed for her on November 1. Today the Guardian has notified us that he would like to dispute all ATM and POS transactions conducted from February (when our customer entered a nursing facility) through the present.

Of course, we are aware that our Reg E clock is ticking...

But we are curious about the Guardian's standing to make a claim about past transactions. Can he assert claims about the indefinite past, or does his right to assert a claim begin with his appointment as guardian or the customer's declared loss of capacity?

Legally, he stands in the shoes of the customer. If the customer could make the claim, he can make the claim. In turn, if you have a defense you could assert against the customer (the passage of time since the transactions occurred) you can assert it against him as well. (Reg E's commentary contains a "wrinkle" on this point.)

Practically, he may not be in a position to assert that the customer did not conduct the transactions unless the customer has literally been confined to the nursing home during this period.

Reading between the lines, this sounds like an elder exploitation situation. That does not automatically make your bank the underwriter of the illegal activity.

Thanks, Ken- that makes sense.

And I would agree that the guardian's practical knowledge in this case is limited (and based more on assumption than fact)- I think that's really the point that prompts my pondering...