"Failure to provide this information could result in the denial of your claim and the deduction of the provisional credit given."
I believe this statement could be a problem for the bank.
I agree that this is problematic as you can't discourage customers from filing error resolution requests. If an examiner were to run this statement against the 3 prong UDAAP tests for unfair and deceptive, I wouldn't want to be the one trying to argue that it didn't fail the test. As Randy pointed out with the USAA consent order, discouraging the filing of error resolution requests has been a hot topic and has been repeatedly discussed by the regulators in recent years. For example, one of the most recent discussions came just this summer with the FDIC's Summer 2019 Consumer Compliance Supervisory Highlights found here:
https://www.fdic.gov/regulations/examinations/consumercomplsupervisoryhighlights.pdfAs burke said, the fact that your third party processor won't investigate a claim without signed paperwork has no bearing whatsoever on your requirements under Reg E. Reg E says you have to investigate a claim promptly, even upon an oral request. If your third party won't conduct an investigation without signed paperwork, you still have to comply with Reg E. If you can't conduct an internal investigation (because you aren't set up for it), the result may be that you have no choice other than refunding the customer without conducting the (third party) investigation.
Also, as Brian C has pointed out on other threads, depending on your third party processor requirements, you may be able to take advantage of VISA/MC Certification forms since this option does not require a customer signature. (See Brian's post #2220341 here:
https://www.bankersonline.com/forum...etting-customer-to-sign-form#Post2220341)
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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