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#639664 - 11/17/06 07:47 PM Zero Liability timeframes
M&M Offline
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Joined: Nov 2003
Posts: 519
Midwest
We're reviewing zero liability timeframes and are trying to get a better feel for how long claims are accepted at other banks under Zero Liability. 120 days is in line with the chargeback timeframes for our Issuer. We've checked with our Issuer, and they are noncommittal- go figure. Anyone care to provide their timeframes?

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eBanking / Technology
#645997 - 12/01/06 09:25 PM Re: Zero Liability timeframes [Re: M&M]
--houri-- Offline
Member
Joined: Sep 2006
Posts: 94
Los Angeles, CA
I'd recommend going straight to MasterCard and Visa with that kind of a question. I did ask MasterCard this question - how long does a consumer have to report fraud and still be covered by Zero Liability? I received the response on 6/9/06 from Customer Support and they stated "there is no timeframe".

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#646002 - 12/01/06 09:28 PM Re: Zero Liability timeframes [Re: --houri--]
Andy_Z Offline
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Reg. E has no time frame to file a claim. That isn't zero liability, but don't think the problem just goes away. If you can limit the time frame for filing, you'll need to disclose that and denote that it only applies to your specific branded card transactions and that other rights and remedies may exist.
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#648279 - 12/06/06 11:33 PM Re: Zero Liability timeframes [Re: Andy_Z]
C_Groat Offline
Member
Joined: Mar 2006
Posts: 70
Salt Lake City, UT
Reg E has no timeframe to file a claim, but can't we, at least, limit our exposure to only the activity occurring within the first 60 days from the statement date in which the first unauthorized transaction occurred under Periodic Statement:timely notice not given? Unless, of course, there were some extenuating circumstances that prevented the customer from reporting within the 60 day period, we may look to take the entire amount.

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#648588 - 12/07/06 04:45 PM Re: Zero Liability timeframes [Re: C_Groat]
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,741
Central City, NE
I don't understand. If the customer doesn't tell you within the first 60 days, you are limited in your financial exposure.

For instance, if they tell you about a reoccurring ACH error from 1 year ago, you are limited to the amount of errors that occurred within 60 days from the first statement showing the first error. You can't deny the claim just because it is > 60 days old, but you don't have to pay them for all 12 months of error.
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#650007 - 12/11/06 01:31 AM Re: Zero Liability timeframes [Re: David Dickinson]
Andy_Z Offline
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Andy_Z
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Remember that liability doesn't apply to all Reg. E claims. If no authorized access devise was used, 205.6 doesn't apply. Hence, no 60 day rule. You won't know unless you investigate.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#650226 - 12/11/06 05:50 PM Re: Zero Liability timeframes [Re: Andy_Z]
Compliancer Offline
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Compliancer
Joined: Jan 2006
Posts: 334
San Francisco, CA
The Zero Liability policy is truly up to your discression though I'd recommend that you have some documented department guidelines. If you get sued, you don't want a lawyer to discover you are arbitrary in your application of the policy.

When determining liability for the consumer with an accepted access device, you can use this list in this order:

1. Zero Liability policy
2. Billing Error (205.7)
3. Unauthorized Transfers (205.6)

If the first policy doesn't apply, then go down the list until you find one where the dispute qualifies. The liability for the consumer goes up as you go down the list. This assumes your card agreement doesn't disclose a policy that imposes lesser liability on the consumer.
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