Telling them to call someone else is burdening the customer (in my opinion).
I agree with David that telling a customer who is trying to dispute an unauthorized transaction is burdening the customer. The concern with this is not only a violation of Regulation E, but that this could be considered a UDAAP violation and result in fairly substantial UDAAP fines. The FDIC hit several banks a few years back who were requiring a police report before they would conduct an investigation. To me, requiring a customer to contact a merchant before the bank will conduct an investigation is the same problem - it is requiring the customer to jump through hoops that the regulation does not require and hoops that go against what the bank disclosed in their Reg E disclosure.
While I haven't seen any UDAAP fines for Reg E disputes from any regulator except the FDIC, the CFPB noted the following as a common violation in their 2014 Fall edition of Supervisory Highlights:
"At one or more financial institutions, examiners found that customers who complained about unauthorized transactions were told they must first contact the merchant, where applicable, before an investigation would begin."They conclude this common violation by stating the following:
"A financial institution cannot deny an error claim on the basis of a consumer failing to provide additional information, or require the consumer to contact the merchant involved first."The common violation found in the CFPB Supervisory Highlights can be found in section 2.3.1 here:
https://files.consumerfinance.gov/f/201410_cfpb_supervisory-highlights_fall-2014.pdf
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Adam Witmer, CRCM
All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com