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#977727 - 06/18/08 10:21 PM Re-assertion by a bank of a settled Reg E dispute
"Rita" Offline
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Joined: Apr 2008
Posts: 7
Utah, USA
Our bank's policy for Reg E disputes is to provisionally credit an account to assure we have an extended investigation time frame. We recently had a dispute that we provisionally credited the customer's account and then submitted the dispute to our third party processor. The bank received the provisional credit from the processor 20 days later so we sent a notification to the customer that the investigation determined the transaction was unauthorized and therefore due to the original provisional credit to the consumer, the case was considered settled and closed. Since that time we received additional information a documentation proving the customer actually initiated the transaction.
The question is: Can the bank re-assert the dispute and revoke the provisional credit from the customer based on more current information? Also does this go beyond compliance with Reg E?

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#979040 - 06/20/08 04:50 PM Re: Re-assertion by a bank of a settled Reg E dispute "Rita"
bevo Offline
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Joined: Mar 2007
Posts: 15
Since nobody has responded, I will throw in my 2 cents worth. I would lean on your last stmt that you have indeed satisfied the requirements of Reg E. Having said that, I would contact the customer and show them the additional information and allow them the appropriate time to address the matter prior to you crediting the account, returning items or charging fees.

If you have a good relationship with your regulator, I would pose the question to them. I will be interested to hear what the right thing to do is. Hopefully someone with a brain will respond soon. Sorry I couldn't be more definitive.

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#979266 - 06/20/08 07:30 PM Re: Re-assertion by a bank of a settled Reg E dispute bevo
John Burnett Offline
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John Burnett
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Cape Cod
Regulation E doesn't provide for the "unraveling" of a final determination in an error resolution claim. Once you have made the customer's provisional credit final, the story is over.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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#981454 - 06/24/08 10:47 PM Re: Re-assertion by a bank of a settled Reg E dispute John Burnett
Andy_Z Offline
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Originally Posted By: John Burnett
the case was considered settled and closed

I ditto John's comments. What does this mean? It means that for the price of paying the claim you have learned that you do not finalize a claim until you have everything. In some cases you might close it because you think you have everything. Low and behold information comes in late, even after your investigation deadline, and it is still too late.

Reg E sets time lines, and final, is final.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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