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#2221123 - 09/06/19 07:28 PM Reg E - No customer response?
dac1 Offline
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Joined: Oct 2009
Posts: 34
A customer called approximately 3 months ago regarding a transaction on their card. We investigated and do believe it to be fraud. We have contacted the customer multiple times over the last 3 months by phone and email to request that the customer sign a dispute form. We have even emailed the form for them to sign, but the customer has never responded or signed. What are our obligations at this time since the customer has never signed or followed up on the dispute?

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#2221126 - 09/06/19 07:42 PM Re: Reg E - No customer response? [Re: dac1]
rlcarey Online
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rlcarey
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Galveston, TX
Give them their credit within three business days of determining you believed it was fraud?

They don't need to complete or sign anything.
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#2221127 - 09/06/19 07:51 PM Re: Reg E - No customer response? [Re: rlcarey]
dac1 Offline
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Joined: Oct 2009
Posts: 34
I knew we had to begin the investigation as soon as they contact us. At one time I was told that if your FI's policy requires a signed dispute that you must investigate but are not required to provide provisional credit if they have not signed. Is the statement about crediting the customer after we have investigated and if we determine that it is fraud - then we provide the credit regardless of whether the customer has signed?

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#2221131 - 09/06/19 08:29 PM Re: Reg E - No customer response? [Re: dac1]
rlcarey Online
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Resolving the dispute is required regardless. Provisional credit is the only thing that written confirmation is based on. Ask USSA about their $15.5MM CMP regarding them requiring that customer provide something in writing for them to get a refund.
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#2221132 - 09/06/19 08:29 PM Re: Reg E - No customer response? [Re: dac1]
BrianC Online
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Illinois
Whether or not you provide provisional credit, the requirement to complete your investigation within 45 days (or 90 since it is a debit card transaction) remains whether or not you ever obtain written confirmation.

As Randy points out, once you completed your investigation and determined an error occurred, 1005.11(c) gives you one business day to correct the error and requires notification to the consumer within three business days.
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#2221133 - 09/06/19 08:59 PM Re: Reg E - No customer response? [Re: dac1]
Adam Witmer Offline
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Joined: Sep 2010
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Originally Posted by dac1
At one time I was told that if your FI's policy requires a signed dispute that you must investigate but are not required to provide provisional credit if they have not signed. Is the statement about crediting the customer after we have investigated and if we determine that it is fraud - then we provide the credit regardless of whether the customer has signed?

To add to what Randy and Brian said: If you disclose that you require a written statement and they don't provide it, you don't have to give provisional credit. You are, however, required to provide final credit if your investigation concludes they are correct.
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#2221141 - 09/06/19 09:55 PM Re: Reg E - No customer response? [Re: dac1]
Andy_Z Offline
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You have excellent advise already. Now the bank has to avoid or reduce a potential violation by making its final determination based on the facts it has and finalize the claim. Based on the post, days matter right now and having a signed from from the customer absolutely does not.
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#2221200 - 09/09/19 06:15 PM Re: Reg E - No customer response? [Re: dac1]
John Burnett Offline
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John Burnett
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Cape Cod
And as soon as you get this credit taken care of, you or your department manager should review your procedures to figure out what needs to be corrected to ensure there's no question about it -- you can't require a written statement from the consumer as a condition of completing the investigation and adjustment process.
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