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#2236908 - 05/19/20 04:11 PM Reg E and P2P claim
waterdog Offline
Junior Member
Joined: Jan 2013
Posts: 49
We had a customer state that her phone was stolen and the boyfriend logged onto her online banking account on her phone and sent an large P2P to himself. He then changed her passwords on her online account and she didn't know about until today. The P2P was sent last Wednesday and she notified us today. Customer is denying she gave him the phone or log on credentials. At some point he had to be given her credentials. Is this a valid Reg E claim?

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eBanking / Technology
#2236913 - 05/19/20 04:28 PM Re: Reg E and P2P claim [Re: waterdog]
BrianC Online
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BrianC
Joined: Nov 2004
Posts: 5,350
Illinois
Quote
Is this a valid Reg E claim


There are two questions that can be derived from your post.

1. Can the customer assert an electronic funds transfer error? Yes, the customer can claim that a P2P transfer is unauthorized which means that the error resolution procedures of 1005.11 apply.

2. Did an error occur? This is a question the financial institution must answer based on its investigation. Remember that according to 1005.6 we cannot use customer negligence as a basis for denying a claim. The fact that the customer's ID and password was used to complete the transfer does not automatically mean that the customer shared their password. Many browsers, including those on mobile devices allow this information to be saved for quick and easy access. Is it possible that the customer granted authority to the boyfriend to access the account as described in 1005.2(m)? Yes, it's possible, but your investigation to this point has not provided any evidence that this has occurred. Based on what you have provided in your initial post, I do not have any information that I could reasonably rely on to deny the claim. Regardless of the determination you make in your investigation, you also should decide if this is a customer worth keeping.
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#2236915 - 05/19/20 04:31 PM Re: Reg E and P2P claim [Re: waterdog]
waterdog Offline
Junior Member
Joined: Jan 2013
Posts: 49
Thanks so much for answering this Brian. I appreciate the detailed answer and help.

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#2236917 - 05/19/20 04:42 PM Re: Reg E and P2P claim [Re: waterdog]
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 73,292
Galveston, TX
Depending on the amount, I would also might be just mentioning on the side that the bank may very well pursue legal action against her ex-boyfriend for the bank's loss. Sometime that has a tendency to change the claimant's story.
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