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#2243127 - 09/25/20 03:28 PM Reg E and OD's- ACH incorrect amount
burke116 Offline
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Joined: Jun 2014
Posts: 562
Petersburg, VA
Customer has a monthly ACH debit that's usually $200. Last month, the debit was $210. Two weeks later, the customer disputes the transaction, saying the debit should have been $200. ACH is all or nothing, so we returned the entire $210. In the weeks between the transaction and the credit, the customer was assessed a few OD fees. The OD fees would not have been assessed if the transaction had not occurred, however the OD fees would have been assessed if the transaction occurred for the correct amount of $200.

Reading through Reg E leads me to believe we owe him a refund for the OD fees. Common sense says that those OD fees are justified. Which is correct?

6. Correction of an error. If the financial institution determines an error occurred [.11(a)(1)The term “error” means: ... (ii) An incorrect electronic fund transfer to or from the consumer's account;], within either the 10-day or 45-day period, it must correct the error (subject to the liability provisions of §§ 1005.6(a) and (b)) including, where applicable, the crediting of interest and the refunding of any fees imposed by the institution. ...

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#2243129 - 09/25/20 03:40 PM Re: Reg E and OD's- ACH incorrect amount burke116
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,223
Galveston, TX
Why are the OD fees correct based on common sense? You have to make the account correct based on fixing the account as if the transaction never occurred.
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#2243131 - 09/25/20 03:59 PM Re: Reg E and OD's- ACH incorrect amount burke116
burke116 Offline
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Joined: Jun 2014
Posts: 562
Petersburg, VA
I guess in my mind the $10 is the error, not the entire amount. However, like I said, reading through Reg E I thought we did owe them the refund.

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#2243133 - 09/25/20 04:42 PM Re: Reg E and OD's- ACH incorrect amount burke116
burkemi Offline
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Joined: Nov 2013
Posts: 549
Take that a step further. You don't refund those fees. Then the company resubmits the ACH for the correct amount. Now there's another fee.... that makes 3 OD fees for 1 ACH. You will not be able to successfully argue that all of these are proper fees if an examiner questions it.
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