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#2260385 - 09/29/21 12:29 PM Reg E - Different types of transactions disputed
banjo Offline
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Customer had ACH debits from their account to a phone company beginning on 3/24/21, which started showing with her 4/12/21 statement.

She also has debit card POS Cash App transfers starting on 5/18/21, which started showing with her 6/11/21 statement. Her card was never missing. Apparently and individual who had been staying with her got the card number and code on the back and did the transfers online. This individual likely did the ACH debits to the phone company too, but there is no way to verify that.

Customer notified us on 9/14/21 that she was disputing all these transactions, which is after the 60 day notice period under Reg E. I'm trying to determine what we can hold the customer liable for:

--Is she liable for everything 60 days after the 4/12/21 statement?

--Or, do we have to separate this into 2 different disputes - 60 days after 4/12/21 for the ACH phone charges, and 60 days after 6/11/21 for the POS Cash App transfers?

Thank you.

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#2260387 - 09/29/21 12:58 PM Re: Reg E - Different types of transactions disputed banjo
burkemi Offline
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First - if she notified you on 9/14 and you're still figuring out how much to give her, you may already have a violation under Reg E by not providing provisional credit within 10 days.

The rest of the story depends on how you handle ACH disputes and POS disputes. You can hold the customer liable for everything that occurs after that 60th day IF you could have prevented the POS transactions from occurring. Do you close the account and open a new one? If so, you could probably argue that you could have prevented the POS transactions from occurring. Do you simply place a stop payment order on the ACH and return those transactions? If so, then regardless of notification date, the POS would have still occurred. Take a look at 1005.6(b)(3). When in doubt, best to err on the side of the customer. Remember Reg E is super consumer friendly.

For what it's worth, we work ACH and debit card dispute separately. The timing never overlaps. There may be a few occurrences where we've returned more than is strictly necessary, but it keeps the waters from becoming too murky.
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#2260394 - 09/29/21 01:19 PM Re: Reg E - Different types of transactions disputed banjo
banjo Offline
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We did give provisional credit.

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#2260410 - 09/29/21 02:31 PM Re: Reg E - Different types of transactions disputed banjo
BrianC Offline
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Illinois
Burkemi, 1005.11(b)(1) notes that the institutiion does not need to comply with the error investigation procedures of 1005.11 (including providing provisional credit and resolving the claim in 45/90 days) if the notice of error is not provided timely. Consequenly provisional credit would not be required for this claim.

I agree that ACH transactions followed by debit card transactions does not likely constitute a "series of transactions" under 1005.6(b) since we would not have been looking to stop cash app transactions on a debit card even if we had been notified timely about the ACH transactions.
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#2260415 - 09/29/21 02:50 PM Re: Reg E - Different types of transactions disputed banjo
burkemi Offline
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Doh! You're right, of course. Had a bit of a brain slip this morning. lol
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