We found a fraudulent debit card (signature based) transaction on a customers account. We were already watching this customers account because we knew of a possible data breach at a merchant he visited. We found the transaction at the pre-authorization stage (before it actually hit the account) and credited him the same night the transaction posted. We spoke with him when we saw the pre-auth and told him about the fraudulent transaction, we did have him fill out a statement that it was fraudulent so we could attempt a chargeback. My question is do we need to send him any letters that his claim has been approved? I didn't see anywhere in Reg E that the notice to the customer had to be written, and since we credited him back the same day and we initiated the claim, are we safe with our verbal conversation with him? Any thoughts would be appreciated.

The procedures under 205.11 apply when a consumer makes the claim, not when you discover it on your own. Since you had him complete a claim, I'd carry it through.

Thanks Andy.