We are separating out cardholders dispute form into two forms. One for transactional error, the other for Fraud.

In regarding to the Fraud form, can we require a Notary Seal before it is accepted.

We are placing a statement on the form that requires to customer to state they where not involved, nor do they know who was involved in the transaction, under penalties of perjury.

Can we legally make the customer have this notarized? We offer free notary services in the bank, so finding a notary to sign it will not be a problem.

What is the purpose of having the document notarized? In many cases the main reason for having a document notarized is for acknowledgment purposes (signature verification). If you are requiring the notary to make the fraud victim sign the documentation under oath by being sworn in by the notary, you will need to check on the state law requirements. For example, the Commonwealth of Kentucky does not require the used of a notary seal but Indiana does. It is a state by state matter in reference to the notary but I believe you are making it harder for the customer to notify you that they are a victim of fraud and could put your institution as risk, whether legal or reputation.

Frankly, I think that requiring a notary's seal on a fraud claim comes dangerously close to a "chilling effect" on the consumer's right to dispute unauthorized EFTs. Regulation E doesn't require that the customer's claim be raised to the level of an affidavit. In fact, the consumer can enter the claim orally, and you are required to investigate it (as far as you can).

No, you cannot require it. You can request it, but not having it is not proper grounds for denying the claim under Reg. E.