Skip to content
BOL Conferences Top Gun 23
Thread Options
#2282490 - 03/22/23 02:58 PM Reg E Applicability - Payment not Credited
SomeBankGuy Offline
Joined: Jan 2007
Posts: 69
Hi All,
A customer made a preauthorized payment to their cell phone provider on "day 1". On day 10 the customer called the bank and claimed the cell phone provider had not posted the credit to their account. Nothing about the payment was incorrect at our end, and it was not returned by the cell phone provider.

Since the customer did authorize the payment, would this claim fall under Reg E? What is the general rule when an electronic transfer sent or authorized by the customer is not credited at the other end by the service provider? Or would this this be considered an EFT in the wrong amount, despite the correct amount being sent (since the amount the recipient posted was $0)?

Some Bank Guy
Last edited by SomeBankGuy; 03/22/23 03:07 PM.
Return to Top
Deposits and Payments
#2282504 - 03/22/23 06:20 PM Re: Reg E Applicability - Payment not Credited SomeBankGuy
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 81,346
Galveston, TX
It is not unauthorized. So Regulation E would not apply. How was the transfer specifically made?
The opinions expressed here should not be construed to be those of my employer:

Return to Top
#2282512 - 03/22/23 07:25 PM Re: Reg E Applicability - Payment not Credited SomeBankGuy
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,043
Cape Cod
And it doesn't actually fit any of the other criteria in the definition of "error" unless you consider it a request for documentation or additional information. If that's the case, you can provide the information included in the transfer record. The customer can then compare that with the information on their account with the cellular service provider and use it in following up with their provider.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  John Burnett