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#2258792 - 08/26/21 05:37 PM Reg E Final Credit Notification and Bankruptcy
Valley girl Offline
Gold Star
Joined: Aug 2014
Posts: 279
TX
I have not had this happen before.

Merchant force-posts a transaction to a closed debit card. Transaction brings account negative. Bankruptcy paperwork arrived a few weeks ago. So I am posting the credit to bring the account balance back to $0, but I don't think I can send my "credit is final" letter to our member. Do I need to send it to her attorney?

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#2258807 - 08/26/21 07:46 PM Re: Reg E Final Credit Notification and Bankruptcy Valley girl
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,990
Galveston, TX
Ask your attorney handling the bankruptcy in your side.
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#2258862 - 08/27/21 04:49 PM Re: Reg E Final Credit Notification and Bankruptcy Valley girl
BrianC Online
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BrianC
Joined: Nov 2004
Posts: 5,977
Illinois
Did the member notify you of an EFT error or is this something you identified and fixed?

Reg E doesn't require a notice to the member if you just fixed the issue yourself. Commentary to 1005.11(b).

5. Discovery of error by institution. The error resolution procedures of this section apply when a notice of error is received from the consumer, and not when the financial institution itself discovers and corrects an error.
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#2258865 - 08/27/21 05:29 PM Re: Reg E Final Credit Notification and Bankruptcy Valley girl
Valley girl Offline
Gold Star
Joined: Aug 2014
Posts: 279
TX
Thank you BrianC. It is something we fixed. The debit card was cancelled and we were set to close the checking account, but the attorney for the member asked that we leave it open for an unexpected deposit. We complied and a cell phone carrier force-posted in a large bill. Because the debit card has been cancelled for over a month, and the transaction wasn't set up as a recurring transaction, I made the decision to dispute it.

I do very much appreciate the help. I was leaning towards not needing to send a letter since it was not disputed by the member, but I needed some reassurance.

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