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#2167688 - 03/12/18 08:01 PM REG E
BSAChick Offline
Member
Joined: Oct 2005
Posts: 94
Illinois
Scenario: Cardholder is incarcerated on 8/4/17, he left his belongings, car, personal papers, bank statements, debit card etc. with his "friends" for safekeeping. His sizable bank account $100,000+ has been drained via ATM withdrawals over the course of 6 months. He is still incarcerated until July. We are unable to speak with him directly only via letters. I have a letter from him stating they were not conducted with his permission. I have no chargeback rights. Can I limit the reimbursement to the 60 days? We did not receive a notice of incarceration or an alternate address to mail the statements. Statements mailed were not returned. I know there is an extension of time limits for extenuating circumstances to a reasonable period. Do I have any options other than to reimburse the cardholder fully?
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Operations Compliance
#2167793 - 03/13/18 03:05 PM Re: REG E BSAChick
Valley girl Offline
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Joined: Aug 2014
Posts: 336
TX
I vote no to "extenuating" circumstances. I take "extenuating" circumstances to mean hospitalized or somewhere without communication. Jail isn't usually a surprise circumstance and they do have telephone and snail mail access. If he has access enough to know that the transactions occurred, he had the ability to communicate with you.

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#2167807 - 03/13/18 03:24 PM Re: REG E BSAChick
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,488
Pulling people out of the ditc...
I would also rope in your banks legal counsel ASAP.
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#2167822 - 03/13/18 03:46 PM Re: REG E BSAChick
Monster Offline
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Joined: Sep 2015
Posts: 472
Where is the "extenuating" circumstances cite in 1005?

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#2167839 - 03/13/18 04:40 PM Re: REG E BSAChick
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,339
Galveston, TX
1005.6(a)(4) Extension of time limits. If the consumer's delay in notifying the financial institution was due to extenuating circumstances, the institution shall extend the times specified above to a reasonable period.
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#2167859 - 03/13/18 05:33 PM Re: REG E BSAChick
Monster Offline
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Joined: Sep 2015
Posts: 472
Thanks Randy! I was looking in the wrong place. Since the commentary includes travel as an example, I don't know if I would agree incarceration doesn't qualify... though you weren't aware so it is difficult to opine. Happy's statement is safest.

6(b)(4) Extension of Time Limits

1.Extenuating circumstances.

Examples of circumstances that require extension of the notification periods under this section include the consumer's extended travel or hospitalization.

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#2167871 - 03/13/18 05:53 PM Re: REG E BSAChick
BrianC Online
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BrianC
Joined: Nov 2004
Posts: 6,280
Illinois
If being sent up the river qualifies as travel....
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#2167876 - 03/13/18 06:02 PM Re: REG E BrianC
Monster Offline
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Joined: Sep 2015
Posts: 472
Originally Posted By BrianC
If being sent up the river qualifies as travel....


laugh

If I plan a vacation in advance, but don't tell my bank that I won't have access to my statements... does that count as an extenuating circumstance? Not sure... though it does sound like they gave their friends access to the debit card and didn't notify the bank. 1005.2(m)(2)

2.Authority.

If a consumer furnishes an access device and grants authority to make transfers to a person (such as a family member or co-worker) who exceeds the authority given, the consumer is fully liable for the transfers unless the consumer has notified the financial institution that transfers by that person are no longer authorized.

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#2167977 - 03/13/18 09:53 PM Re: REG E BSAChick
BSAChick Offline
Member
Joined: Oct 2005
Posts: 94
Illinois
Ok, but leaving your access device behind with a friend and granting them authority to use it are two different things right? He states he didn't give authority to use the card. However I don't know how the PIN was obtained yet...... probably written on the card frown

This will be going to legal.
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#2167981 - 03/13/18 10:01 PM Re: REG E BSAChick
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,339
Galveston, TX
Originally Posted By BSAChick
This will be going to legal.


For a $100K, I would hope so.
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#2169043 - 03/19/18 08:17 PM Re: REG E BSAChick
Deputy Dawn Offline
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Deputy Dawn
Joined: Feb 2007
Posts: 484
Pennsylvania
The statement " we will contact law enforcement to arrest and prosecute the party who was using your access device" is usually pretty effective for claims we cannot deny

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