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#2254903 - 06/04/21 11:27 PM EFT Disputes: Using Specific Form
jslcompl Offline
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Joined: Sep 2015
Posts: 6
It has been my experience that most financial institutions request a consumer sign a specific form (vendor developed; card processing developed; or internally developed) - what I would consider 'industry standard'. I have a client who was cited by the FDIC (who said 'all' regulatory agencies are citing this as an issue) for 'requiring the use of a particular form'. Regulation E allows for requiring disputes be put in writing and signed, providing the investigation is not delayed if a written form is not received. The bank's process includes beginning the investigation upon notification (oral or written) and follows up with getting a specific form signed (card processor developed).
Has anyone else heard of regulators citing for 'required use of a specific form'? If the card processor requires disputes be submitted on their form, how can the bank complete the investigation process without 'requiring' the use of a specific form?
Appreciate any thoughts or comments.

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#2254905 - 06/05/21 11:44 AM Re: EFT Disputes: Using Specific Form jslcompl
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,002
Galveston, TX
I would concur with the regulators if the bank is requiring the use of a specific form. A financial institution may require the consumer to give written confirmation of an error within 10 business days of an oral notice. That written notice does not have to be anything more than a written confirmation on a napkin as long as it identifies the transaction. Many banks have a form that a customer may use for this purpose, but it cannot be a requirement that the customer do so. As far as gathering information from the customer - either ask at the time the verbal notification is given and write it down or call them. If your card processor is requiring a specific written form from your customer - find a new processor. Card processors are notorious for violating Regulation E.

You might also want to review the new FAQs just published and the linked materials - specifically #6: https://www.consumerfinance.gov/com...ransfers/electronic-fund-transfers-faqs/
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#2254938 - 06/07/21 04:00 PM Re: EFT Disputes: Using Specific Form jslcompl
jslcompl Offline
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Joined: Sep 2015
Posts: 6
thanks Randy

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