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#2197746 - 11/08/18 03:15 PM Reg E Written Explanation
C_Groat Offline
Member
Joined: Mar 2006
Posts: 70
Salt Lake City, UT
When providing written explanation on a Reg E dispute regarding No Error Occurred due to Transaction Did Not Post, Only One Transaction Posted or Merchant Issued Credit, would these letters also need to include language 'consumers right to request the documents the institution relied on to make it's determination' as the determination was made by reviewing the customer's account?

Also, after Provisional Credit is issued and merchant issues a credit to offset the charge, a letter is sent indicating the duplicate credit will be reversed on 'x' date, would this letter also require the same language of 'consumers right to request the documents the institution relied on to make it's determination?'

Thank you

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eBanking / Technology
#2198030 - 11/12/18 04:16 PM Re: Reg E Written Explanation C_Groat
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Yes to both questions. The following is from our Reg E training manual:

D. Procedures if Financial Institution Determines No Error or a Different Error Occurred [ยง1005.11(d)]:
In addition to following the procedures specified in paragraph (c) of this section, the financial institution shall follow the procedures set forth in this paragraph (d) if it determines that no error occurred or that an error occurred in a manner or amount different from that described by the consumer:

1. Written Explanation:
The institution's report of the results of its investigation shall include a written explanation of the institution's findings and shall note the consumer's right to request the documents that the institution relied on in making its determination. Upon request, the institution shall promptly provide copies of the documents.

2. Debiting Provision Credit:
Upon debiting a provisionally credited amount, the financial institution shall:

a. Notification:
Notify the consumer of the date and amount of the debiting.

b. Honor Items for 5 Business Days:
Notify the consumer that the institution will honor checks, drafts, or similar instruments payable to third parties and preauthorized transfers from the consumer's account (without charge to the consumer as a result of an overdraft) for five business days after the notification. The institution shall honor items as specified in the notice, but need honor only items that it would have paid if the provisionally credited funds had not been debited.
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David Dickinson
http://www.bankerscompliance.com

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#2198031 - 11/12/18 05:22 PM Re: Reg E Written Explanation C_Groat
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,216
Galveston, TX
David - no arguments here, but just one observation.

"regarding No Error Occurred due to Transaction Did Not Post, Only One Transaction Posted"

To me, that sounds like they are allowing consumers to submit claims of error based on merchant pre-authorizations. If that is the case, then they are jumping through hoops that are not required. Until a transaction actually posts to an account, there is no transaction for the consumer to dispute. They should just be telling the consumer to monitor the account and let the bank know if the transaction actually comes through.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2198039 - 11/12/18 10:21 PM Re: Reg E Written Explanation C_Groat
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Good point Randy. I agree.
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David Dickinson
http://www.bankerscompliance.com

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