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#472291 - 12/19/05 10:29 PM Provisional credit
CAKE Offline
Junior Member
Joined: Apr 2005
Posts: 25
If a customer closes out all of their accounts before provisional credit can be given, does the customer relinquish their dispute privileges?

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General Discussion
#472292 - 12/19/05 11:02 PM Re: Provisional credit
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
No. Reg E requires you to provide provisional credit. I don't know why the customer closed out their account. Maybe they think they can help stop the unauthorized debits this way.
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David Dickinson
http://www.bankerscompliance.com

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#472293 - 12/20/05 05:28 PM Re: Provisional credit
CAKE Offline
Junior Member
Joined: Apr 2005
Posts: 25
How am I supposed to credit the customer's account when they no longer bank with us?

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#472294 - 12/20/05 05:38 PM Re: Provisional credit
John Burnett Online
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John Burnett
Joined: Oct 2000
Posts: 39,341
Cape Cod
You reopen the old account and notify the customer of that fact when you tell them you've provisionally recredited it. This is a royal pain for the bank, but there's just no way around it. The provisional credit can't be skipped based on the account's having been closed.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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