We have a customer who disputed 3500.00 worth of online sports betting transactions in May. We gave her money back. She filed another dispute recently for different online sports betting merchant for 9700.00. During the timeframe of the transactions she logged into her online banking account several times a day. She also came into the bank for a new debit card, but never mentioned the 'unauthorized' transactions until a few weeks later. She frequents casinos and it appears as though she has a gambling problem. I would like to deny this one. Thoughts from the reg e experts would be appreciated.

Without filing a chargeback to obtain information about the authorizations (e.g. IP address / email address that you could tie to her computer provide evidence that she authorized the transactions) all you have is circumstantial evidence which most examiners (and auditors) would consider inaquate to deny a claim.

Reg E gives the consumer the right to request copies of the documents you relied on to deny a claim. What documents would you provide based on what you have now? Accessing online banking doesn't prove she knew about the transactions or authorized them. Asking for a new debit card doesn't prove that she knew about the transactions or authorized them. The USAA Bank UDAAP enforcement action made it quite clear that the CFPB doesn't consider reliance on behavior patterns to be an adequae investigation. The commentary to 1005.6(b) notes that we cannot rely on the consumer receiving periodic statement as evidence that they had knowledge of the loss/theft of an access device.

You should follow your normal procedures for investigating a claim. If you obtain hard evidence that she authorized the charges, that's when you deny the claim.

Finally, don't give this (soon to be ex-customer I hope) another card.

Thank you, I didn't think we had enough. We will provide provisional credit and hopefully receive enough info from the merchant to pull it back. We revoked her card privileges but have not closed her account yet. Have a great weekend!!

PART II -

Customer disputed an ACH from same merchant as debit card dispute. It was past the return timeframe so we requested proof of authorization and it was provided Name/email/phone matched what we have for her. She also received a credit from same merchant for winnings i am assuming. With this info can we revoke pro credit provided on her debit card claim?
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We have a customer who disputed 3500.00 worth of online sports betting transactions in May.

And it is next January and the account is still open and you even issued another debit card? My question is why? Not sure what those ACH transactions have to do with the debit card transactions that she is disputing. That really proves nothing. I would have closed that account immediately after the first instance.

Just grasping at straws.... The ACH debit was done at the same Merchant that she is disputing on her debit card... I didn't think we could use that poa on the debit side. And I agree that her account should have been closed, but unfortunately, that is out of my hands. Thanks for taking the time to respond.