We've been having disagreements regarding instances in which an unauthorized electronic fund transfer that are reported in an untimely manner (i.e. beyond the 60th day after the periodic statement). I've always understood that even though the unauthorized electronic fun transfer may lose the rights under 1005.11, we'd still need to figure the consumer's liability under 1005.6 and the burden of proof is on the bank to illustrate why.

However, the opposing argument I'm receiving from others is that once the 60th day hits, the consumer loses their rights under 1005.11 and is fully responsible for the unauthorized electronic fund transfer. The bank has no responsibilities to state why the consumer is fully liable.

Am I mistaken?

You win this argument. Show "the opposition" comment 11(b)(1)-7:

7. Effect of late notice. An institution is not required to comply with the requirements of this section for any notice of error from the consumer that is received by the institution later than 60 days from the date on which the periodic statement first reflecting the error is sent. Where the consumer's assertion of error involves an unauthorized EFT, however, the institution must comply with § 1005.6 before it may impose any liability on the consumer.

To comply with 1005.6, you have to determine whether a transaction in question is authorized or unauthorized. You can't do that without completing an investigation. You don't have to adhere to any of the section 1005.11 requirements, but you still have to apply 1005.6.

This is one of the least understood aspects of Regulation E.

Really? I don't think Regulation E covers that.

I just want to make sure I am doing my provisional credit correctly then. I would provisionally credit the customer for all transactions, even those over 60 days until I finish my investigation. I have a customer that had over $500 in "unauthorized" transactions in the first 60 (following the statement showing the first unauthorized transaction). After the 60 days, there are $1300 in transactions she is disputing. My provisional credit should be for the $1,900, correct?

You provide provisional credit (assuming the consumer qualifies by providing a timely written confirmation of the claim (if you require it) and you are not able to complete your investigation within the 10-business-day window. The provisional credit amount is the amount of the claim, less up to $50 if you have a reasonable belief that an unauthorized EFT has occurred and you have complied with the requirements of §1005.6(a). In this case, you would provide PC of $1,750 ($500 plus $1300, less $50).