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#2261097 - 10/14/21 03:23 PM Reg E Claim - No Response
Bankwoman1 Offline
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Joined: Dec 2015
Posts: 1,046
Midwest
We received a message from a customer through our website "contact us" page. It read:

My account has been compromised. I got paid over $1000 Friday morning and by that same evening I was at $-198.00. There is something very wrong with my account, the only payments that I made was for my water bill, pizza hut, company kitchen, and $200 cash from ATM.

This was on 10/11/2021 (we were closed). The only other charges she received since her paycheck was deposited was for Playstation. There were multiple charges. This is not unusual, as there have been Playstation charges clearing her account since September. We have called her every day, multiple times, since Tuesday and have also emailed her requesting more information, such as what charges she is disputing. She has not returned our calls or answered our email. We are at a loss as to what exactly she wants to dispute since she will not get back with us.

Do we still open an investigation, even though we are not sure what we are investigating? Can we open an investigation and then deny & close it due to not enough information from the customer? What are we required to do at this point?

Thanks for any help!

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#2261107 - 10/14/21 05:50 PM Re: Reg E Claim - No Response Bankwoman1
burkemi Offline
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Step 1 would be to kill the card, regardless of anything else.

Beyond that, she have a blanket statement that everything not identified is unauthorized. Since the other charges all stem from Play Station, and there have been multiple transactions since September, it's possible that she means ALL Play Station charges. Or maybe it's only PS charges that occurred after her paycheck. In this situation I think you can fall back on 1005.11(b)(1)(iii):

(b) Notice of error from consumer. (1) Timing; contents. A financial institution shall comply with the requirements of this section with respect to any oral or written notice of error from the consumer that: (iii) Indicates why the consumer believes an error exists and includes to the extent possible the TYPE, DATE, AND AMOUNT of the error,
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#2261155 - 10/15/21 06:59 PM Re: Reg E Claim - No Response Bankwoman1
Bankwoman1 Offline
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Thank you burkemi! I appreciate the help.

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#2261164 - 10/15/21 10:49 PM Re: Reg E Claim - No Response Bankwoman1
Andy_Z Offline
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Reviewing the charges, especially after the $1000 deposit, 4 are ID'd as valid, all others are identified as invalid. You know the customer and the account - you have a claim.

Participation is common from the consumer, but not required in a claim. I would call, email, message and snail mail for more info and if there is time I'd request the claim in writing. If you are too far into the 10 business days based on the dates actually referred to, I'd say it's too late to hold any written requirement to being received w/in 10 business days before provisional credit may be owed. That is, the bank can't drag its feet and then enforce an immediate response requirement.
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#2261221 - 10/19/21 12:57 PM Re: Reg E Claim - No Response Bankwoman1
burkemi Offline
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Andy - where and how would you determine where to draw the line? Customer gave a blanket statement that four charges were authorized, everything else is not. Taken as a literal statement, this would actually go back to the beginning of the account (and I'm not suggesting this is what occurred), but does prompt again - just where is the line? It appears the account has been reviewed and these stem from PS charges. But some of these charges pre-date the deposit. Do you ignore the charges in September and research only those occurring on or after the date of deposit?

I'm not trying to be argumentative, just wanting to gain an understanding. Had this occurred here and I was asked for assistance (I'm in compliance, we have a card dispute dept - sometimes I'll get calls "How do we do this...") this is pretty much the response I would have given. What, exactly, is Customer disputing? We would call, email, snail-mail, try to catch her in the branch, etc... but until we know what she's disputing, how do we know the transactions to investigate?
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#2261320 - 10/20/21 05:40 PM Re: Reg E Claim - No Response burkemi
InFairness, CRCM Offline
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Originally Posted by burkemi
Andy - where and how would you determine where to draw the line? Customer gave a blanket statement that four charges were authorized, everything else is not. Taken as a literal statement, this would actually go back to the beginning of the account (and I'm not suggesting this is what occurred), but does prompt again - just where is the line? It appears the account has been reviewed and these stem from PS charges. But some of these charges pre-date the deposit. Do you ignore the charges in September and research only those occurring on or after the date of deposit?

I would take this as disputing all charges after the paycheck except for the 4 mentioned as authorized.
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#2261321 - 10/20/21 06:09 PM Re: Reg E Claim - No Response Bankwoman1
John Burnett Offline
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I agree. The customer has not suggested there was anything wrong before her paycheck was deposited. I'd consider that the backward limit of the claim. But I agree with Andy and InFairness that you have enough information to consider this a valid claim. Since you have been unable to inform the customer of the need for confirmation in writing, I think you have to remember the consumer-bent of this regulation and go ahead with provisional credit until you can investigate those PlayStation payments.
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#2261322 - 10/20/21 06:17 PM Re: Reg E Claim - No Response Bankwoman1
Bankwoman1 Offline
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Midwest
I appreciate all of the comments from everyone. To provide an update, the customer finally came into the bank to dispute certain charges. Those charges included the Playstation charges that posted after her paycheck, along with all Playstation charges prior to her paycheck, going back to early September.

There was a difference of opinion as to when actual notification took place. I believe it should be the day we received the email from the customer. Our Reg E department was thinking it should be the day she came in since we never received actual notification as to what we needed to investigate. I'm going to assume, after reading all of the conversations on this forum, that the investigation should have started the day we received the email?

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#2261327 - 10/20/21 06:56 PM Re: Reg E Claim - No Response Bankwoman1
John Burnett Offline
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I am going to cut you some slack here. You did not have the claim until she came in to identify the transactions in dispute. If you want to "hard line" it, you could say you had two claims. The first on the PlayStation transactions after her paycheck; the second on the earlier PlayStation transactions. The latter were very clearly not identified before she came in to clarify her claim.
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#2261461 - 10/22/21 05:56 PM Re: Reg E Claim - No Response Bankwoman1
Bankwoman1 Offline
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Midwest
Thank you John! I really appreciate your help with this!

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#2261632 - 10/26/21 08:39 PM Re: Reg E Claim - No Response Bankwoman1
John Burnett Offline
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Even though you can treat this situation as comprising two separate error claims, because they all involve the same characteristics (PlayStation purchases), you should determine the customer's liability by applying the notice timing limitations on what gets reimbursed in section 1005.6(b)(1)-(3) combining all the PlayStation charges and starting with the oldest.

1. Start with the statement showing the first of those PlayStation charges that the customer is disputing. Determine the date on which the statement was sent or made available to the consumer (for example, March 30, 2020).
2. Determine a second date that is 60 calendar days after the statement sending date (for example March 30 plus 60 days is May 29, 2020).
3. If you cannot show that the transactions were authorized by your customer, the customer is entitled to reimbursement for the PlayStation charges occurring on or before (in our example) May 29, 2020. The customer is responsible for the PlayStation charges occurring after May 29, 2020.
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#2261634 - 10/26/21 08:42 PM Re: Reg E Claim - No Response Bankwoman1
John Burnett Offline
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Of course, the charges in question in this case didn't go back far enough to implicate the 60-day cutoff of bank responsibility for unauthorized transfers in §1005.6(b)(3). But it could have, so I will leave my post above in place.
Last edited by John Burnett; 10/26/21 08:45 PM.
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