I have question about how others are handling consumer notification when a dispute is resolved. Are calls being placed to the consumer or is there a formal communication (Snail/email) being sent out? Does Reg E require formal notification to the consumer that the dispute is resolved or will an oral notification suffice?

See 1005.11(c)(iv) and 1005.11(d)(1).

If you determine no error or a different error occurred, you are required to provide written notification. If you judge in the consumer's favor, you must provide notice, but the method for doing so isn't defined.

We always provide written notice, regardless. This allows us to have hard copies for the dispute files and leaves little question if we notified.

From my experience, a lot of institutions mail a letter so they have it in writing as proof. Some make calls either in conjunction with a letter, or as the sole notification - but if you do that, you need to have a good log to prove the notification took place.

As far as the formal requirement, Reg E just requires notification, which could be oral or written. The technical requirement is found in 1005.11(c)(2)(iv).

"(iv) Reports the results to the consumer within three business days after completing its investigation (including, if applicable, notice that a provisional credit has been made final)."

The CFPB exam procedures provide a bit more clarity on the option of notification being either written or oral:
"The financial institution must provide within three business days of the completed investigation an oral or written report of the correction to the consumer and, as applicable, notify the consumer that the provisional credit has been made final (12 CFR 1005.11(c)(1) & (2)(iii) and (iv))."

All of that said, keep in mind that if you are revoking the provisional credit, written notice is required under 1005.11(d).