While reviewing my Reg E disclosure that's given to customers, I came across the error resolution section and ours states that we will determine whether an error occurred within 10 calendar days (it's calendar days not business days in Massachusetts) unless it's a VISA check card POS transaction. In that case, we'll determine whether an error occurred within 5 business days. My question is, I don't know where the 5 business day rule for only visa POS trans. came from. Does anyone know if it's a Reg E thing or a VISA rule. I'd like to remove it from our disclosure as it's very restrictive. Any thoughts are appreciated.

It's not part of the regulation. It is a contract issue with MC/VISA. I would continue to disclose according to the regulation and not the time frames for resolution set by MasterCard or VISA.

I agree with Allan in that I don't want to disclose more than necessary as that only requires more changes later. But don't get carried away with the edit pen.

Reg. E says that you have to disclose what you do, whether controlled by "E", state law or other agreement.

§205.7(b) Content of disclosures. A financial institution shall provide the following disclosures, as applicable:

(1) Liability of consumer. A summary of the consumer’s liability, under §205.6 or under state or other applicable law or agreement, for unauthorized electronic fund transfers.

Thankfully 205.6 addresses liability and notice, not the time frame to resolve the error. So while you may adjust the time frame noted in your disclosure, be sure not to change the lesser liability for use of the card in a debit mode.

OK, now you really have my attention.

Most of the revisions we have made to our EFT disclosure over the past few years have been related to Visa revisions instead of Reg E revisions. Are you saying that we don't have to disclose Visa limitations and error resolution issues in our EFT disclosure? Wouldn't that be misleading to our customers?

No, I am not saying that.

You do have to disclose liability. "If you notify us within 2 business days...you will be liable for $X". I like to say, "... up to $X" so I cover myself for MC.

Model forms in "E" also state that you will advise the consumer of error resolution time-lines. A-3--§§205.7(b)(10) and 205.8(b) provides language stating, "We will determine whether an error occurred within 10 business days after we hear from you...". Here I like the language of "within 10 business days" because 5 is within 10. And by not being so specific you do not have to define what is an ATM vs. a debit card transaction, which liability and time-line applies when, and you keep it closer to the safe harbor language in the models. Adding more and more to this may make it too confusing for the consumer and it doesn't add to their protections.

Since they are not planning to have errors, I believe it is more important to have your procedures in compliance than to over disclose what time-lines they would have for resolving disputes that were electronically charged in different manners. So I believe you can generally follow the model language and meet the needs of "E" and separate agreements.