We were at a seminar last week and I asked the question about Reg E. My question was, "Do we have to provsionally credit a customers account if we require a written letter of a Reg E error and we do not receive it within 10 days from oral notification?" He said that we are not allowed to decline a provisional credit if the only reason we are not doing it is because they did not give us written notification. He said that can be one factor but not the reason alone.

My reading of a Bankers Online article of "Procedures for resolving errors" indicated we could decline a credit if a letter is not received within 10 business days? So what is it? Can we decline a credit or not based on the sole reason a letter was not received?

Any help would be appreciated!

I agree with you and believe the Reg. is clear. Here are steps from the investigation process. Note in the "decision tree" it says or not and.

§205.11 Procedures for resolving errors. (The bank may take 45 days if it)
(i) Provisionally credits the consumer’s account in the amount of the alleged error (including interest where applicable) within 10 business days of receiving the error notice. If the financial institution has a reasonable basis for believing that an unauthorized electronic fund transfer has occurred and the institution has satisfied the requirements of §205.6(a), the institution may withhold a maximum of $50 from the amount credited. An institution need not provisionally credit the consumer’s account if:

(A) The institution requires but does not receive written confirmation within 10 business days of an oral notice of error; or

(B) The alleged error involves an account that is subject to Regulation T (Securities Credit by Brokers and Dealers, 12 CFR art 220);

Andy is correct, you don't have to provide provisional credit if you have requested but the customer does not provide written notice of the error.

One exception is VISA debit card errors as VISA requires provisional credit within 5 business days. You can request but cannot require the written notice by the 5th day.

Andy is absolutely correct. (as usual) Definitely question stuff you hear at seminars - I've been told some doozies.

But.... Andy & I both teach seminars.

You are right, you can't take everything you hear as the absolute truth. Sometimes I have people tell me I said something, but you know that they misunderstood or took it out of context.

And we in the industry are very glad to have you and Andy teach seminars!